HARARE – Zimbabwe’s largest beverages manufacturer, Delta Corporation, has begun its 2027 financial year with robust top-line growth after higher consumer spending, improved liquidity and stronger demand across its alcoholic and non-alcoholic beverage portfolio lifted first-quarter sales.
The company reported revenue of US$294.6 million for the three months ended June 30, 2026, a 23% increase from US$238.6 million recorded during the corresponding period last year. Total beverage volumes expanded 14% to approximately 3.4 million hectolitres, reflecting broad-based growth across the group’s core operating divisions.
The performance underscores the resilience of Zimbabwe’s formal consumer market, with Delta benefiting from stable exchange rates, stronger disposable incomes and increased liquidity flowing from the country’s mining and tobacco industries, two of Zimbabwe’s largest foreign currency earners.
More than 90% of domestic sales during the quarter were settled in foreign currency, highlighting the continued dominance of hard currency transactions within the formal retail sector.
Lager beer remained Delta’s biggest earnings engine, with sales volumes rising 17% as demand for mainstream brands remained robust while premium local labels, including Zambezi Lager, gained market share following improvements in product availability. Premium imported brands and flavoured alcoholic beverages also recorded strong growth as supply constraints eased and pricing remained competitive.
Despite the strong performance, Delta said demand exceeded available production capacity for certain brands and packaging formats, forcing the company to supplement local production with imports from regional subsidiaries.
To address these capacity constraints, Delta confirmed that the ongoing expansion of its Southerton Brewery remains on schedule, with additional production expected to come on stream during the third quarter ahead of the larger capacity upgrade planned for the Belmont Brewery.
Traditional beer also delivered another strong quarter, with Zimbabwean sorghum beer volumes increasing 20%, largely driven by a 30% surge in Chibuku Super sales. Management attributed the growth to sustained consumer demand, improved product availability and higher liquidity circulating within rural and agricultural communities following tobacco marketing season proceeds.
The company’s recently introduced Leopard Extra brand continued gaining traction as nationwide distribution and marketing campaigns expanded.
Delta’s soft drinks business also delivered steady growth despite a more challenging operating environment.
Combined non-alcoholic beverage volumes rose 14%, while sparkling beverages increased 7% even after price increases implemented to offset the January 2026 VAT adjustments, higher fuel costs and rising packaging expenses.
However, management cautioned that increasing operating costs continue to weigh on profitability. The business cited the sugar tax, higher polyethylene terephthalate (PET) packaging prices, rising fuel costs and intermittent shortages of bottler-grade sugar as significant headwinds facing the carbonated beverages segment.
The company also warned that Zimbabwe’s sugar tax continues to place locally manufactured soft drinks at a competitive disadvantage against imported beverages that do not face equivalent fiscal charges.
One of the standout performers during the quarter was African Distillers, Delta’s wines and spirits subsidiary, which reported a 43% increase in sales volumes.
Growth was recorded across every major category, with ready-to-drink beverages climbing 48%, affordable wines surging 80%, and spirits advancing 32%, led by strong demand for Star Brandy. The business said stable exchange rates, improved product availability, stronger consumer confidence and reduced informal market competition supported the exceptional performance.
African Distillers is investing in additional packaging infrastructure scheduled for commissioning during the third quarter to alleviate supply bottlenecks and support future growth.
Delta’s first-quarter performance provides another indication that Zimbabwe’s formal consumer economy remains resilient despite persistent cost pressures. Supported by mining and tobacco sector liquidity, relative currency stability and continued investment in production capacity, the group appears well positioned to sustain growth into the remainder of the financial year, although taxation and input cost inflation remain key risks to margins.
