Delta's lager volumes subdued, says Gowero

Delta's lager volumes subdued, says Gowero
Published: 24 July 2013
Demand for Delta Corporation Limited's lager beer was depressed due to excise duty increases which have resulted in some retailers charging higher than recommended prices to circumvent the problem of lack of coins in the market while there is also an element of profiteering, Delta CEO Pearson Gowero told the AGM today.
 
Gowero noted that lager beer went down 8% with the volume at 463 000 hectorlitre (hl) and sorghum beer is up 6% at 846 000hl. Meanwhile, soft drinks are up 13% at 374 000 hls and Maheu is up 80% to prior year at 36 000hls because it is come off a low base.
 
"The trading environment has been characterised by uneven consumer demand.... We see some provinces such as the Midlands, Masvingo and Mashonaland East showing very good growth in volumes while provinces like Manicaland, Matabeleland and part of Mashonaland West are regressing," he said.
 
He said this trend probably mirrors the economic activities in different provinces of the country as areas with high agriculture and mining activities seeing better demand. The exception is in Manicaland where demand is subdued notwithstanding the hype about diamond mining.
 
Chibuku volumes recovery was mainly driven by Chibuku Super with the recently commissioned Chibuku Super plant already running at full capacity. Preparations are underway to install a second line to meet the rising demand.

- zfn

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