GBL buys local maize for beer

Accra, Sept. 12, GNA - Ghana Breweries Limited, a leading beer market shareholder, on Friday said it purchased 900 tons of local maize worth three billion cedis for the production of beer. Major Don Chebe (rtd), Corporate Affairs Manager, said the Company's plan was to step up the use of local maize from the current level of 25 per cent to ensure support and guaranteed prices for farmers.

He was speaking at the facts behind the figures programme of the Ghana Stock Exchange on Friday. It informed stockbrokers and the public about the factors that have contributed to the Company's improved performance.

Maj Chebe said GBL has been using local maize in its production since 1996 but had been silent about it.

"We have arrangements with various mills in the country, which provided us with steady supply of the maize," he said. Maj Chebe expressed the hope that the increased use of local raw materials would cut down on foreign exchange used to import barley and improve the Company's fortunes.

Mr Segun Adebanji, the Managing Director, said after a successful capital restructuring programme, the company was adopting stringent financial control to ensure that the cash flow problems that plagued it in the past did not recur.

The restructuring programme, which has the backing of shareholders, enabled the company to write off the deficit on its income surplus account through a reduction in the stated capital. It also involves the conversion of 10.7 billion cedis zero convertible bond into ordinary shares.

Mr Clement Nouwens, Financial Director, said the Management would embark on a tight budgetary control to reduce cost, close leakage in the supply chain as well as introduce a staff bonus scheme as part of the Company's strategy to reposition itself for the fierce competition in the beer market.