Selebi-Phikwe KBL Distribution Depot Faces Closure

Pini Bothoko | Monday November 16, 2015 14:37

KBL’s corporate communications manager, Mokoro Ketsitlile confirmed to Showtime about the looming distribution depot closure.

“Yes it is true that plans are underway to close down our Selebi-Phikwe sales and distribution depot and we expect to have closed down by the end of the financial year (31 March 2016),” said Ketsitlile.

He said KBL has been compelled to restructure some of its key operations for operational efficiency due to the sustained regulatory and trading conditions, which have forced the business to restructure accordingly.

Ketsitlile said: “Further to the above, the current water and electricity shortages have further exacerbated the situation, leading to production stoppages and inability of the business to consistently produce and deliver our products to meet demand.”

He said in addition to the current restructuring, they expect that there would be further restructuring in other areas of the business over the next six months. He noted the depot here currently has 18 employees and the balance of the restructuring head count is currently still under review.

He said employees have already been notified about the closure as part of their consultation and engagement processes.

Ketsitlile said as it has been the case in the past, they will engage with the potentially affected employees to see how many can be reallocated elsewhere within the business.

“We do understand however, that it is not always possible, however, we will do the best we can to re-deploy all the potentially affected employees,” said Ketsitlile. Asked how this exercise is going to affect KBL’s performance in the market, Ketsitlile said, “it would be misleading at this time to speculate on the effects that this restructuring will have on KBL’s market performance, yet it is envisaged that it will help the business to better meet its operational and competitive challenges in the trading environment.” For a while KBL business has faced an ever-increasing levy on alcoholic beverages and a host of regulatory measures.

This included the reduction of alcohol trading hours, the traditional beer regulations and increased licensing restrictions, among others.

Early this year around July KBL also closed its production at Lobatse Brewery that has operated for 36 years due to lower sales leaving around 88 people without jobs.

Back in 2013 KBL also closed of the Palapye Brewery operations following the banned sale of traditional beer in residential areas that previously represented about 80% of its trading channels.