African Distillers (Afdis) says it is proceeding with an US$8 million packaging line investment, as the wines the spirits maker moves to expand production capacity in response to rising consumer demand.
The group said the project formed part of a broader capital investment programme aimed at supporting long term growth after recording strong demand across its product portfolio during the first quarter ended June 30, 2026.
“Looking ahead, planned capacity enhancement, targeted brand-building investments, and continued improvements in distribution effectiveness are expected to support further volume growth and profitability,” the company said in its trading update.
“As previously reported, the Company remains on schedule with significant capital investments aimed at supporting increasing market demand and securing long-term production capacity. These investments include the acquisition of an additional packaging line valued at US$8 million.”
The investment comes as Afdis reported a 43 percent increase in volumes during the quarter, with growth recorded across all product categories.
The company attributed the performance to stable exchange rates, stronger consumer spending, improved product availability and tighter enforcement against smuggled and counterfeit alcoholic beverages, which helped reduce grey market activity.
Ready-to-Drink beverages posted the strongest growth, with volumes rising 48 percent as demand for cider remained firm. Wine volumes jumped 80 percent, driven by affordable brands including 4th Street, Montello and Green Valley, while spirits volumes climbed 32percent on the back of strong demand for Star Brandy and improved product availability.
Afdis said the operating environment remained supportive during the quarter despite persistent cost pressures.
“The operating environment remained stable during the first quarter, supported by steady exchange rates, contained inflation and a tight monetary policy framework,” the company said.
“These conditions supported effective business planning and execution, while consumer spending remained buoyant.”
However, it warned that higher fuel and packaging costs, the stronger South African rand and January’s VAT adjustment continued to increase operating costs.
Management said it would remain focused on growing market share through improved product availability, disciplined pricing, revenue management and rigorous cost control while monitoring input cost pressures throughout the remainder of the financial year.