Delta Corporation says it is prepared to face fresh entrants in the lager beer market but insists that any new players must operate under fair and consistent conditions to avoid disadvantaging local producers.
Speaking during an investor briefing, corporate affairs director Alex Makamure said the company welcomes competition but remains concerned about tax incentives and policies that may tilt the playing field.
“We have no issues fighting competition. All we ask for is that the market remains fair, that new entrants come in on terms that do not result in them being funded by us Zimbabweans,” Makamure said.
He noted that strong interest in the lager segment is expected, given its growth, but urged authorities to ensure regulatory equity. “We have good brands, we can bring in new and more robust brands exciting the market, and we are able to compete if the playing field is fair,” he said.
Makamure added that supply consistency remains Delta’s most important competitive tool. “The biggest defense is to be able to supply — and that has been one of our letdowns in all the markets,” he said.
Chief executive Matlhogonolo Valela said Delta has spent the past three years investing ahead of demand, commissioning new plants across its soft drinks, sorghum beer and lager operations. The strategy worked well for beverages and traditional beer, he said, but the company underestimated how fast lager demand would grow.
“In the lager beers, we were behind in terms of production capacity. The economy surprised us with very robust demand, and we are now operating almost optimally with no room for error,” Valela said. “We wish we could commission a new plant next month because we got the timing wrong.”
The company is now expanding production in Bulawayo and upgrading its Harare brewery with new tanks, a move expected to increase output by almost a third. Valela said the expansion will give Delta “enough breathing space” to respond to any market developments without compromising supply.
However, he cautioned that the entry of new players has wider implications beyond manufacturing. Delta relies heavily on local contract farming for inputs such as barley, and Valela said policymakers must consider how new investments might affect value chains.
“There are costly efficiencies in managing businesses on a value chain basis. If producers from other regions enter without considering these dynamics, some of our value chains could collapse,” he warned. “These factors must be looked at if we are to plan our economy properly.”
Valela said it is unclear whether these considerations have been incorporated into current economic planning.
Despite the concerns, both executives stressed that Delta is confident in its brands and competitiveness — as long as the operating environment remains fair.
