By Alois Vinga
LISTED beverages manufacturer, Delta Corporation Limited has seen volumes growth across the products line buoyed by strong consumer demand and a booming government supported infrastructure drive.
Presenting a trading update for the first quarter ended June 2023, Delta company secretary, Faith Musinga said the products line fared quite well.
“The lager beer volume grew by 12% for the quarter compared to prior year. Product supply will improve following the commissioning of a new bottling line at the end of the quarter and the continued investment in returnable glass bottles,” she said.
Musinga said during the period, there were some gaps in product supply arising from the disruptions to the supply of utilities and scheduled critical plant maintenance.
The Sorghum beer volume in Zimbabwe grew by 7% for the quarter compared to prior year on the back of ongoing adjustments to the route to market in response to the challenges facing the formal retail sectors.
The Sparkling Beverages volume grew by 11% for the quarter. The new PET packaging line was commissioned during the quarter, which has allowed the expansion of the PET offerings.
African Distillers Limited (Afdis) recorded a volume growth of 11% for the quarter compared to the prior year, driven by the Ready to Drink and spirits categories.
Schweppes Holdings Africa Limited recorded a volume growth of 5% for the quarter, which was constrained by the limited output of juice drinks and bottled water arising from a plant breakdown, which has since been resolved.
Going forward the group expects to employ strategic management approaches to overcome ensuing risks within the economic environment.
“The operating environment in Zimbabwe will be impacted by the election season and the complex macroeconomic factors. The recent surge in inflation will remain a key issue impacting on business performance.
“The focus remains on exploiting opportunities from activities that generate aggregate demand such as the infrastructure development projects, mining activities and diaspora remittances,” added Musinga.
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