HARARE, July 29 (The Source) – Delta Corporation says it will commission two new Chibuku Super plants in Masvingo and Kwekwe by October this year at a cost of $30 million to increase volumes of its popular sorghum beer.
Chief executive Pearson Gowero told shareholders at the company’s annual general meeting that volumes for the first four months of the financial year were up, largely on increased uptake of Chibuku Super as customers were shifting towards cheaper products.
“Sorghum beer improved on Chibuku Super and we have increased market share in that business thus we are looking at distribution as well as putting additional capacity in Kwekwe and Masvingo which will be commissioned in October,” he said.
Equipment for the Chibuku Super two plants was now on site, a welcome development after the group cut prices to stimulate demand, he added.
In the review period, sorghum beer volume increased rose nine percent while revenue inched up three percent.
Lager beer volumes dropped 14 percent and revenue went down 17 percent but the lower priced Eagle lager was in demand.
“Soft drinks volumes were down 17 percent, but revenue is better because we sell high value products,” he said.
Gowero said weak economic fundamentals, cash shortages, underperformance of agriculture and significant policy shifts continue to undermine the company’s performance.
“We expect little change in the trading environment and we will focus on strengthening cost containment measures and cost base while continuing to defend market share,” said Gowero.
On associates, Afdis is still to report its financials, while Schweppes volumes were up eight percent but revenue slid down five percent, with the market share stable.
Nampack Zimbabwe revenue is trending below prior year but profitability is improving due to streamlining costs and productivity. The company also witnessed growth in plastic packaging volumes.