The Sunday News
Judith Phiri, Business Reporter
LEADING beverage producer, Delta Corporation Limited has said improved volumes performance was recorded across all its segments for the financial year ended 31 March 2023.
The beverages producer, which operates segments that include lager beer, sorghum beer, sparkling beverages, wines, and spirits, has also set its sights towards commissioning a number of plants this year.
In a statement accompanying the preliminary trading update for the period under review, Delta Corporation chairman, Mr Sternford Moyo said consumer spending continued to be buoyant, being boosted by stable US Dollar pricing and modest improvements in wages and salaries across various sectors.
Delta Corporation Limited
“Lager beer recorded improved volume performance throughout the year with a growth of 17 percent compared to prior year, achieving a record volume of 2.2 million hectolitres.
The category benefitted from the injection of returnable glass bottles and the improved plant performance.
The business continues to focus on improving customer service and on increasing consumer-facing activities.
The installation of an additional packaging plant is progressing to schedule, for commissioning in June 2023 which will underwrite the supply of brands in line with market expectations.”
He said the sorghum beer volume in Zimbabwe grew by nine percent for the year, while the Chibuku Super supply was constrained by limited production capacity due to disruptions in the supply of power and water.
Chibuku Super banana flavour
Mr Moyo said the group also drove the revival of the Scud pack to enhance market supply and address affordability thus improving demand, while a new Chibuku Super plant is being installed at the Harare Brewery which is scheduled for commissioning by next month.
He added: “United National Breweries South Africa recorded a volume growth of 12 percent over prior year, with slower growth recorded in the second half of the year.
This was attributed to price distortions in the market driven by lack of pricing compliance by traders as a result of higher cost of fuel and distribution costs.”
Mr Moyo said Chibuku Super was successfully introduced into the South African market, through supplies from regional units, the commissioning of the Super Chibuku Plant in South Africa is expected by August.
He said Natbrew Plc (Zambia) recorded encouraging volume recovery in the second half of the year to close with a growth of 28 percent for the year and the recovery was driven by the returnable Scud pack and Chibuku Super Banana.
African Distillers Limited (Afdis)
Mr Moyo said the volume of the Sparkling beverage grew by 10 percent over the previous year and continued to recover market share despite the currency induced pricing distortions.
“The growth is anchored by the increased market penetration of the returnable glass packs and better availability of packs and flavours.”
He said African Distillers (Afdis) recorded a volume growth of 18 percent for the year driven by the ciders ready to drink category, which grew by 23 percent and wines, which grew by 16 percent.
In terms of Schweppes Holdings Africa, Mr Moyo said the volumes were flat for the year, having been affected by shortages of juice concentrates and a prolonged plant breakdown that disrupted the supply of Minute Maid branded juice drinks and bottled water.
Minute Maid
“The volumes at Nampak Zimbabwe have been steady, riding on the recovery in the beverages and other consumer sectors.
The focus remains on stabilising the supply of key imported materials that are affected by developments in the international commodities markets.”
Meanwhile, the Group revenue increased by 60 percent to ZW$537 billion in inflation adjusted terms, reflecting the volume gains across business units and the replacement cost-based pricing.
