Delta Beverages sinks $500m into economy

04 Oct, 2015 - 01:10 0 Views
Delta Beverages sinks $500m into economy Mr Pearson Govero

The Sunday News

Mr Pearson Govero

Mr Pearson Govero

Gabriel Masvora, Business Editor
THE country’s leading beverages maker Delta Beverages has invested more than $500 million in various capital projects since the beginning of dollarisation in 2009.

Board chairman Mr Canaan Dube said of the money, Bulawayo has benefited from three major projects amounting to more than $50 million showing the commitment the company has in the city.

He said in 2010, Delta Beverages upgraded its larger beer packaging plant in Belmont at a cost of $22 million and re-opened its Bon Accord soft drinks factory in 2012 at a cost of $17 million.

Last week the company opened its refurbished Fairbridge Chibuku Brewery which was completed at a cost of $22 million.
The Fairbridge project involved installing a new packaging plant capable of producing one million hectoliters of its opaque beer.

It also involved construction of a seven kilometre effluent line from Umguza to Bulawayo municipal system at the Mahatshula North outfall sewer.

“This is a bold and massive move by Delta in these times of economic decline. Hard times will be a thing of the past,” said Mr Dube.

“The company has factories covering lager beer, soft drinks and sorghum beer in greater Bulawayo. These businesses have all benefited from the upgrade in plant and equipment.”

The effluent line, said Mr Dube, will also allow both Umguza and Bulawayo local authorities to expand their housing projects whose sewer systems will feed into the line.

He, however, said capacity at some of the group’s operations was being hampered by constant power cuts.

“This plant (Fairbridge Brewery) has not reached full capacity because of electricity cuts,” said Mr Dube.

The country is experiencing serious power shortages that have seen power utility company Zesa imposing a tight load shedding schedule that has resulted in some areas going for a full day without power. Industrialists estimate that more than 20 percent production time is being wasted due to the power cuts daily across the country.

Hence, Mr Dube said Delta Beverages was considering venturing into solar energy to support some of its business units.
He also said Government must relax liquor licensing to allow such companies as his to penetrate new markets some which have been created by the land resettlement programme.

“Retailers of alcoholic beverages have been complaining about the issue of licensing so we want the Government to look into that. As we increase capacity we also need to penetrate new markets,” he said.

Delta was also supporting farmers, he added, through a sorghum contracting scheme that involves more than 800 households.

Delta Beverages require 40 000 tonnes of maize and 10 000 of red malting sorghum per year.

“The category (contract farming) attracts a beer levy which is payable to local authorities which shared a total of $4,5 million in the year to March 2015, funds that are contributing to the provision of social amenities.”

Delta Beverages chief executive officer Mr Pearson Govero said his company started refurbishing the Fairbridge Brewery two years ago after discovering that its pilot project to brew Super Chibuku in Chitungwiza was being overwhelmed.

“Our initial capacity at Chitungwiza was absorbed in three months. With this new plant our capacity has risen to three million hectoliters,” he said.

He said with the growing demand of its Super Chibuku brand, it was going to open another new plant soon either in Masvingo or Manicaland.

“We are still evaluating which province to build the next Chibuku plant,” said Mr Govero.

Vice-President Phelekezela Mphoko said Government was working tirelessly to improve the business environment in the country to allow more investment in the country.

“We are aware that there are certain concerns about certain laws and regulations which impact on the ease of doing business in Zimbabwe. We have constantly indicated that the laws relating to indigenisation have a focus to achieve a win-win situation between our valued investors and the indigenous population and that there is flexibility when it comes to the manufacturing sector and other less resource-based industries,” he said.

Delta Beverages is the local unit of leading global Brewer SAB Miller which holds 40 percent.

The company portfolio include 15 beer brands and it employs more than 3 000 workers in Zimbabwe. It is also the local bottlers of Coca-Cola products.

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