Ghana: Guinness Ghana Breweries committed to increasing local raw material sourcing

Guinness Ghana Breweries Ltd says it is committed to increasing its local raw material sourcing from 50 per cent in 2018 to 70 per cent by 2020, Myjoyonline.com reported on December 12.

Managing Director of Guinness Ghana, Gavin Pike, believes this new strategy will not just benefit over 175,000 farmers across the country but will also increase investment into Ghana’s local raw material.

Mr Pike was speaking at the ‘Facts Behind the Figures’ session organized by the Ghana Stock Exchange in Accra.

He said, “We believe the sustainability of our company’s performance is conditional upon us being trusted by the communities in which we operate. In 2012 we were sourcing about 12 per cent of our inputs from within Ghana. That figure is now over 50 per cent and we hope to reach about 70 per cent by 2020.”

Gavin Pike said that even though the ease of doing business in the country has marginally improved, more seems to be done to deal with outstanding issues of high taxation and the volatility of the Cedi against major currencies like the dollar.

He said Ghana’s economic environment has been positive. Citing the reduction in the policy rate and inflation, Gavin Pike stated that even though this was a positive sign for investors, more can be done.

“…But there are some headwinds like leaves us with the urgency to respond immediately even though it has been a challenge for us. We just need to engage with the regulatory authority to ensure that any changes that come through in policy are smoothed through,” he stated.

The company said it will in the coming months be relabeling to Guinness Ghana PLC after shareholders’ approval.

The Board Chair of the company, Dr Felix Addo, says the move is to comply with the Company’s Act.

“Going forward, if the current company’s bill in promulgated …so administratively, we are required to convert our publicly limited liabilities company to the name of the company with the PLC tag and that’s what we just did,” he said.

Shareholders of Guinness Ghana Breweries PLC, the leading total beverage company in Ghana, will receive a dividend payment of GHs 0.0351 per share amounting to GHs10.77 million for the 2017-18 financial year.

This was announced at the company’s 46th Annual General Meeting (AGM), held at the Fiesta Royale Hotel in Accra.

The dividend payment will be the first since 2012, a reflection of the company’s growth trajectory and positive performance.

The Board Chairman of Guinness Ghana PLC, Dr Felix Addo, explained that during the year under review, the company focused on growing market share and strengthening the equity of the brands while rewarding loyal consumers during the year under review.

He said there is a clear strategy to ensure another positive year for Guinness Ghana, “As we have commenced a new financial year, and despite the current uncertainties in both the global and local markets which are adversely impacting especially our Forex exposures, I would like to assure shareholders that we have the right people and a clear strategy to deliver another good financial year as we pursue our ambition to create the best performing, most trusted and respected consumer products company in Ghana.”

13 December, 2018