Delta Corporation delivered strong volume growth across its beverage portfolio in the six months to September, buoyed by firm consumer demand, stable pricing, and increased disposable incomes, although new taxes and imports weighed on soft drinks.
The brewer and beverages giant reported that lager beer volumes rose 21%, benefiting from what it described as “an increase in consumer incomes and stable pricing.” Delta said the business “continues to surpass historical daily sales rates,” underscoring sustained demand for premium brands.
Sorghum beer volumes climbed 16%, driven by increased spending from the tobacco and mining sectors, while soft drink sales were up 11%. The company said the soft drinks unit faced pressure from the sugar tax and competition from cheaper imports using unregulated artificial sweeteners.
“The business is losing volume to cheaper imports and emerging product offerings… driven in part by constrained operating conditions that limit local producers’ ability to compete on price,” Delta said.
A standout performer was Maheu, which recorded a 250% surge in volumes following the successful relaunch of the Shumba Maheu brand in November last year. The strong performance has prompted the company to expand production capacity “to meet buoyant sales” across its portfolio.
However, Delta raised concerns over the sugar tax burden, saying it paid the equivalent of US$15 million during the period — only slightly below the US$16.5 million paid in the prior half-year — describing the levy as “an untenable situation versus earnings generated in this category.”
On the broader economy, Delta said consumer spending remained strong, supported by a stable Zimbabwe Gold (ZWG) exchange rate, a record-breaking tobacco marketing season, and increased mining activity, particularly in gold, which continues to anchor export earnings.
