Skol owner Thibault Relecom speaks on brewery's outlook

Skol Brewery Limited, a major player in Rwanda's alcoholic beverage market since 2009, has been navigating various challenges in recent years. The Owner of Skol, Thibault Relecom, discussed the company's business outlook in an interview with CNBC Africa's Julius Bizimungu. Relecom highlighted the significant hurdles the brewery has faced, particularly in the wake of the COVID-19 pandemic. Relecom emphasized the importance of adaptability in the face of adversity. The initial year of the pandemic, 2020, presented challenges but was somewhat in line with previous years. However, the following year, 2022, proved to be particularly difficult as the world grappled with the post-COVID landscape. The logistical hurdles intensified, with delays in importing raw materials and machinery significantly impacting operations. This necessitated an increase in buffers for essential supplies and required the team to swiftly adapt to the changing circumstances, albeit at a higher cost. Looking ahead to 2023, Relecom expressed concerns about ongoing challenges, including persistent supply chain disruptions and high inflation rates. He disclosed that the total bill of material had surged by 25%, underscoring the financial strain placed on the company. Despite these obstacles, Skol Brewery has maintained a growth trajectory in line with Rwanda's GDP expansion, reflecting the adaptability of its consumer base. One of the pressing issues facing manufacturers globally is the supply chain disruptions, exacerbated by the impactful closure and gradual reopening of China. Relecom acknowledged the substantial impact of China's closure on operations and noted that while the reopening process was underway, the effects were still being felt within the industry. The prolonged timeline for the normalization of operations in China has induced continued challenges for Skol Brewery and other producers. Amidst these adversities, Skol Brewery Limited remains committed to meeting consumer demands and sustaining its market presence in Rwanda's competitive alcoholic beverage sector. The company's resilience and strategic adjustments in response to evolving economic conditions underscore its determination to navigate the uncertainties of the market landscape.