Delta Corporation which is the biggest beer and soft drink manufacturing company in Zimbabwe has felt the pinch of the recently introduced sugar tax.
The company is headquartered in Harare and is listed on the Zimbabwe Stock Exchange and its stock index, the Zimbabwe Industrial Index.
The firm has also been hard hit by the current retail operating environment.
Key points:
⬇️Fizzy Drinks: Sales volumes dropped 16% in the 3 months to December as the sugar tax pushed prices up. Cheaper imports of Coca-Cola brands are flooding the market, undercutting Delta
🛑Retail crisis: Delta is feeling the impact of “changes in route to market and the inconsistent performance by retail and wholesale partners”
⬇️Mazoe: Sales fell 27% for the quarter and 17% over 9 months. The sugar tax drove up prices, and consumers have turned to imported Mazoe.
⬆️Beer Sales: Lagers grew by 4% in the quarter, while sorghum beer edged up just 2%, with drought squeezing disposable incomes
What’s keeping consumer demand ‘resilient’? Delta credits ‘mining activities, government infrastructure projects and the steady flow of diaspora remittances’
NewZwire
