Harare, April 17, 2013 – Zimbabweans are consuming less beverages including the traditional mahewu and sorghum beer due to slowdown in consumer spending, a Delta trading update for the 12 months to 31 March 2013 revealed on Tuesday.
Delta announced that total beverage volumes were flat year-on-year (at approximately
6.9m hl) as growth in lager, sparkling beverages and Maheu were offset by decline in
There was noticeable slowdown in consumer spending in the quarter ending March 2013. In the financial year 2013 lager volumes grew 4% year-on-year to about 2.1m hl
although there was a 6% decline in volumes in the fourth quarter.
The volume decline can be attributed to the adverse effects of the excise duty increase in December 2012 and the resultant retail disruption.
Sparkling beverages (SBs) volume grew 9% year-on-year for the financial year 2013 to
about 1.64m hl and grew 7% in the fourth quarter. Sorghum beer volumes declined 8% to approximately 3.1m hl and were down 7% in the fourth quarter. Maheu volumes increased by 42% for the year to approximately 132,000 hl and were up 77% for the quarter, benefiting from the shift from importation to local production.
Sales value grew ahead of volume growth at 14% to approximately USD 632.5m on the back on improved sales mix. The full year results are expected to be published on 16 May 2013.
Market analysts said Delta had a compelling story with its pristine balance sheet, strong cash flows and solid brands. There are high barriers to entry in this industry and Delta enjoys a dominant position with a solid distribution network.
“We expect the group to sustain the margin expansion supported by improved efficiencies, enhanced product mix and improved supply chain management.”