HARARE – Zimbabwe’s largest beverage producer, Delta Corporation Limited, delivered a robust performance in the six months to September, buoyed by rising consumer incomes, stable prices, and solid demand across its beverage categories.
According to the company’s latest trading update, lager beer volumes surged by 21%, benefiting from increased consumer spending power and price stability. “The business continues to surpass historical daily sales rates,” Delta said, reflecting growing consumer confidence and resilient local demand.
The sorghum beer segment also posted impressive growth, up 16%, supported by cash inflows from the tobacco and mining sectors — two key drivers of rural and small-town liquidity.
Meanwhile, soft drink volumes rose by 11%, though the company noted that growth was constrained by the government’s sugar tax and rising competition from cheaper imports and unregulated beverages using artificial sweeteners. Delta reported paying the equivalent of US$15 million in sugar tax during the period, slightly down from US$16.5 million in the prior comparable period. The company described this as “an untenable situation versus earnings generated in this category,” signalling the levy’s growing impact on profitability.
In contrast, Delta’s Maheu segment was a standout performer, with volumes skyrocketing 250% following the successful relaunch of the Shumba Maheu brand in November last year. The strong consumer response has encouraged the company to expand production capacity to meet “buoyant sales” across its portfolio.
On the broader economic front, Delta painted an optimistic picture of Zimbabwe’s trading environment, citing strong consumer spending driven by a stable Zimbabwe Gold (ZWG) exchange rate, a record-breaking tobacco marketing season, and increased mining activities, particularly in gold production.
With its diversified product base and continued investment in capacity, Delta appears well positioned to sustain growth, even as cost pressures such as taxes and import competition threaten margins.
