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Business Reporter

GIANT beverages producer, Delta Corporation, says its revenue grew by 55 percent in the quarter ending 30 June 2022 in inflation adjusted terms compared to growth of 283 percent in historical cost terms with the sparkling beverages segment registering highest growth of 32 percent.

In its first quarter trading update, the group said the trading environment was characterised by increased social and economic activity as the Covid-19 restrictions and curfew times were progressively relaxed.

The sparkling beverages volume grew by 32 percent and continues to recover market share, benefiting from consistent product supply and an expanded pack and flavour offering.

However, the supply of PET packs remains constrained and Delta hopes this will be addressed by the investment in additional capacity, expected by the end of the calendar year.

The range of no sugar variants has been expanded to include Coke, Fanta, Sprite and Sparletta ginger beer brands, it said.

The lager beer volumes grew by 19 percent compared to the prior year. The volume recovery is underpinned by improved supply of brands and packs, which has benefited from the injection of returnable glass.

Sorghum beer volumes in Zimbabwe also grew by 14 percent for the quarter compared to the prior year, driven by the standard Chibuku product.

“The category continues to benefit from the increased social activities as we celebrate the Chibuku brand’s 60th anniversary. Chibuku Super is constrained by the limited production capacity,” said Delta. 

“A new Chibuku Super plant is being installed at Harare brewery for commissioning in early 2023. There is a renewed focus on expanding the consumer choice. The Chibuku Super Banana flavour was launched in June 2022 and is exciting the market.”

Recently, sorghum beer business unit, Mr Marshall Pemhiwa, told Business Chronicle that the firm is using more than 1 000 tons of sorghum per month to manufacture its newly introduced banana-flavoured Chibuku Super product with the bulk of supplies coming from contract farmers.

Wines and Spirits volumes grew by 18 percent for the quarter amid indications that the supply of ciders has since stabilised after the outage of glass bottles in the last quarter.

Schweppes Holdings Africa Limited recorded a volume growth of nine percent for the quarter, which was constrained by a shortage of fruit juices for the flagship Mazoe Orange Crush.

The local supply of fruit juices has resumed as the harvesting season commenced in June.