COMMERCIAL PERFORMANCE
Zambia Sugar PLC’s mission is to make safe and high-quality food that is abundant, available and affordable by consumers. Zambia Sugar’s commercial performance in the 2025 financial year (FY25) remained exceptional amid the macroeconomic and operational headwinds faced during the year. Although performance declined marginally compared to the prior year, the business outperformed forecasts across all key segments.
In the Domestic market, the business navigated macroeconomic volatility, including an appreciating Kwacha and inflationary pressures, ensuring the protection of margins by optimizing the sales mix. The competitive landscape was characterised by intensified pressure from both formal and informal channels, particularly in border regions and rural markets. The Whitespoon brand retained its leadership position in terms of brand preference and availability.
QUICK
LINKS
Serving Zambia with Excellence, Expanding Access, Strengthening Distribution, and Growing Sustainably Across Every Market.
COMPETITIVE LANDSCAPE
The most significant competitive threat came from illegal imports, particularly from Malawi. The appreciation of the Zambian Kwacha made imported sugar materially cheaper, with some Malawian brands landing at prices up to 33% lower than Whitespoon. This price differential, combined with reduced consumer Willingness To Pay (WTP) amid economic strain, led to increased switching behaviour, particularly in rural and peri – urban markets where affordability often outweighs brand loyalty.
Despite these challenges, Whitespoon remained the preferred brand, with 96% of surveyed households identifying it as their brand of choice. This loyalty was underpinned by perceptions of quality, sweetness, and trust. Research conducted in the year also identified product availability and the optimization of the price ladder as the two most important drivers of consumer choice, underscoring the critical importance of consistent supply and the maintenance of all strategic price points in the market.
ROUTE TO CONSUMER (RTC)
The business places the consumer at the center of its strategy and, in FY25, reinforced this commitment by focusing on enhancing product accessibility through improvements to its RTC model and nationwide service delivery.
RTC remained a strategic priority for the business given the value it creates. As a result, the Commercial function has continued to focus on implementing initiatives intended to improve its effectiveness. Guided by commercial imperatives, the introduction of Local Area Representatives (LARs), a strategic intermediary layer designed to bridge the gap between Last Mile Resellers (LMRs) and the broader trading system, strengthening coordination and execution at local level. This initiative is expected to drive the growth in secondary distribution and, therefore, lead to enhanced revenue generation.
STRENGTHENING DISTRIBUTION
Further to the roll out of LARs, complementary enablers were implemented to increase the effectiveness of the RTC model. This included the expanded use of digital platforms and the strategic placement of 40 foot containers in underserved rural markets to improve availability of Whitespoon products. The Sales Force Automation (SFA) system was customized to better reflect the way the Commercial team manages its sales force and resellers, and the business took significant steps in commencing with the rollout of a Distributor Management System (DMS) to transform reseller management and service delivery.
Retail chains, with their national reach and growing presence in suburbs and townships, represent a key growth channel for the business. To leverage opportunities in this segment, a third party solution to enhance service delivery to retail chains was implemented, to increase on shelf availability and to grow share of shelf across stores.
As a result of these initiatives, Whitespoon sustained a strong national availability score averaging 97% during the year, a slight improvement from 96% in the previous year. Together, these initiatives strengthen consumer access, improve trade servicing and position the business to sustain commercial growth and competitiveness.
A MARKET LED BUSINESS
In keeping with Steve Job’s famous quote, “You have got to start with the customer experience and work back to technology, not the other way around”, the business commissioned a comprehensive consumer study early in FY25 to understand evolving behaviors, preferences and perceptions in the sugar category. This was undertaken against a backdrop of economic pressure, shifting health perceptions and intensified competition.
The research confirmed that affordability remains the primary purchase driver. It also identified a clear shift from weekly or monthly purchasing to daily purchasing, increasing purchase frequency and driving strong demand for smaller pack formats.
In response, the business introduced a 70g pack in FY25 to align with disposable income levels among low-income consumers, support daily usage patterns and formalize informal tie bag trade by offering a hygienic, branded alternative. Demand for the 70g format, as well as small formats such as 195g and 330g, significantly exceeded installed production capacity. This placed pressure on supply reliability, with availability of the 70g pack dropping to as low as 15% in some regions.
The commissioning of the K2 billion Twazabuka project will address these constraints. It will enable the business to pack on demand, improve supply reliability and provide a long-term solution across packaging sizes including the 70g, 195g and 330g formats.
DISCIPLINED EXPORT STRATEGY
The export performance was shaped by a complex mix of global market volatility, regional currency dynamics, and deliberate strategic intent. The global sugar market experienced a significant downturn during the year, with prices falling from highs of 23 US cents per pound to lows of approximately 15 US cents. In response, the business adopted a cautious and selective export approach.
The business focused on growing its market share in primary markets. The business successfully navigated a turbulent global environment, exceeded its export targets, and laid the groundwork for a more resilient and value-driven export model in the years ahead.
Whitespoon continued to retain market leadership, recording 96% brand preference, approximately 70% brand equity and a Net Promoter Score of 76%. FY25 highlighted the need for continued innovation and investment in the Whitespoon brand.
