KBL, BBL merger to deliver growth prospects

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Kgalagadi Breweries Limited (KBL) managing director Johan De Kok says the amalgamation of KBL and the Botswana Breweries Limited (BBL) is expected to do away with unnecessary costs and deliver strategic opportunities arising from a leaner supply chain.

The two entities operate as a single entity under the name Kgalagadi Breweries Limited. The merger has been described as necessary for future survival and profitability. Speaking at the company's 40th anniversary celebrations in Gaborone, De Kok said the merger, which took effect April 9, 2013 "presents opportunities for rationalisation of depots and operating plants as well as provide increased potential to leverage scale across the new entity and increase efficiency and extract other than enhancing business benefits and synergies.

As a result, it has been announced that the new entity will now operate four divisions being the manufacture, distribution and sales of clear beer, soft drinks and traditional opaque beer respectively and also importation, distribution and sales of alcoholic beverages and soft drinks".

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