HARARE – Delta Corporation says it is prepared to confront fresh competition in the beer market as reports circulate that Varun Beverages is considering an entry into the lager segment. However, the company insists that regulatory fairness will be crucial as the sector evolves.
Speaking to analysts this week, senior executives Alex Makamure and Matts Valela said Delta is not opposed to competition and, in fact, sees it as an essential ingredient for market growth and innovation. What the company wants, they stressed, is a fair operating environment in which all manufacturers are subjected to comparable rules, taxes and compliance obligations. “We’ve no issues fighting competition. All we ask for is that the market is fair,” one executive said.
Delta has previously criticised policy inconsistencies that it believes have granted certain competitors an undue advantage. The company has often cited discrepancies in tax treatment and investment incentives, as well as the growing impact of the sugar tax, which cost Delta US$15 million in the first half of the financial year. Management argues that such costs distort competitiveness, particularly at a time when local producers face rising input costs, power challenges and aggressive pricing from imports and informal operators.
The debate over fair competition comes as Delta continues to report strong demand across its beverage portfolio. The company has recorded significant growth in lager, sorghum beer, soft drinks and maheu, driven by improved consumer spending and stabilising macroeconomic conditions. Increased mining activity, record tobacco earnings and a more stable exchange rate have helped restore purchasing power in key segments of the market, allowing Delta to expand production capacity in anticipation of continued demand.
Reports that Varun Beverages, which has grown rapidly through its carbonated drinks and bottled water brands, might enter the lager category highlight a broader trend: Zimbabwe’s consumer market is reawakening. Recent financial statements from several major corporates show rising revenues across manufacturing, retail, construction and mining, signaling renewed economic activity. Despite this, profitability remains uneven, with many firms still grappling with high taxes, imported inflation, power shortages and low disposable incomes that limit pricing flexibility.
Against this backdrop, Delta’s call for fairness reflects a wider concern within the manufacturing sector. Companies are increasingly wary of policy distortions that could undermine competitiveness just as the economy shows signs of revival. Delta maintains that it is ready to compete with any new entrant, but insists that all players must operate under transparent and equitable rules.
As Zimbabwe’s beverage industry becomes more contested and the broader economy gradually strengthens, Delta’s position is clear: competition is welcome — but only on a level playing field.
