Zambian Breweries has reduced the price of its Mosi and Castle lager amid growing confidence in economic stability.
The recommended retail price of a 375ml bottle of both lagers is now K7, reduced from K7.50.
Zambian Breweries Country Director Annabelle Degroot said the cut in price of the nation’s favourite beers was a response to the improved inflation rate and several months of a stable exchange rate. She thanked and commended the Government for implementing measures to allow this level of stability.
“In response to government’s efforts to maintain a stable business environment, we are committed to retaining the affordability of our products,” she said.
Zambian Breweries expects the price reduction to encourage drinkers to move away from cheap illegally brewed high-alcohol beverages that pose a danger to public safety as well as denying government tax revenue.
The Country Director explained that when beer prices drop, overall alcohol consumption does not increase but rather consumers tend to move away from cheaper higher alcohol options with an average ABV (alcohol by volume) of 43 percent, back into clear beer with an average ABV of 4.5 percent. This is an important driver of responsible alcohol consumption and government revenue collection.
The decision is also aimed at stimulating volume growth, tax revenue growth and its associated positive impact on investment, agriculture and employment.