Guinness to source 70 per cent of raw materials locally –MD

The company currently buys cassava locally

The company currently buys cassava locally

Guinness Ghana Breweries (GGB) Plc has set an ambitious target to use more than 70 per cent of locally sourced raw materials in its production by 2020 to increase profitability for local farmers.

Mr Gavin Pike, the Managing Director of Guinness Ghana Brewery Plc said this when the company took its turn at the ‘Facts Behind the Figures’ organised by the Ghana Stock Exchange (GSE) to provide a platform for the meeting of chief executive officers listed companies to meet with brokers, the media, institutional investors and representatives of GSE.

Mr Pike said the company had grown its commitment to resort to the use of local raw materials since 2012 when the company sourced only 12 per cent and currently sourcing a little over 50 per cent of local raw materials.

He said the concentration of the company on the use of local raw materials had resulted in more than 25,000 farmers directly supplying grains and cereals.

He added that the ambition was in hand with the government’s ‘Planting for Food and Jobs’ policy and that the company was proud to be part of the country’s development agenda.

Mr Pike said the company had seen significant boost in its profit margin partly because of the reliance on locally sourced raw materials.

He said opening a recent production line at Achimota doubled the capacity of Guinness to meet the demand of growing consumers of the beverage.

He said the company also guaranteed its clients with the right people, adding that, the company also believes in investing in the community in which it operates.

On the implementation of tax stamp for the beverage producing companies, Mr Pike said the initiative was good and Guinness Ghana Breweries Limited supports it.

He said the tax stamp would help control the smuggling of drinks into the country and increase government’s tax revenue.

However, Mr Pike said the tax stamp had increased the cost of production of the company and the inefficiencies involved in the affixing of the tax stamps delayed affected company’s production process.

“We have raised our concerns on the tax stamp to the appropriate authority and are in discussion with them to address our concerns,” he said.

The Board Chairman, Dr Daniel Addo said the tax stamp policy was “disruptive” and driving up the cost of operations of the company.

He however, said the policy would help to increase government tax revenue and help combat the importation of fake drinks in the country.

The Managing Director of the GSE, Mr Kofi Yamoah commended the management of Guinness Ghana Breweries Limited for coming to the exchange to explain the company’s financial performance to the general public.

By Kingsley Asare

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