Vita Malt initiates plans to return to production

Vita Malt plc has initiated plans to return to business, after being out of the beverage market for four years. Part of the plans is to recapitalise, which literally means to restructure its debt and equity mixture, mostly with the aim of providing sufficient operational funding or making its capital structure more stable, sources have revealed.

Vita Malt plc went out of business in 2010, for reasons sources associated with inability to match stiff competition with Nigerian Breweries’ Amstel Malt and Maltina, or the Guinness brand; poor financial base, high energy spend and poor diversification plans, among others. When Real Sector Watch visited its Agbara plant, it was gathered that the company still has some staff members despite not being in operation. The atmosphere suggested inactivity as grass had overgrown some parts of the plant. However, sources have revealed there is light at the end of the tunnel.

“Vita Malt wants to recapitalise and will soon be back to business,’’ says a source, who spoke on the condition of anonymity.

But the firm must consider the threat of already well-established brands as well as NB’s low-cost brand called Malta Gold and Consolidated Breweries’ Hi- Malt, both of which are established value brands and are dominating the market where Vita Malt expects to play, say analysts.

Industry analysts also say the firm must also be ready to play in the mainstream market and build scale in the value segment. There should also be efforts to play on the premium market and diversify products, they add.