Economy

Delta’s sparkling beverages record resounding growth

Delta's beverages

By Nyasha Mutena

Delta’s Sparkling Beverages volume grew by 205% for the quarter compared to the prior year as the business continues.

This was due to consistent product supply and the increased social and economic activities that drive consumption.

In its update for the first quarter ended 30 June 2021, Delta Corporation said the volume includes sales into the Manicaland territory which became part of the franchise at the beginning of the quarter.

“The current focus is on injecting returnable glass bottles and supplying the full range of flavours and packages. African Distillers Limited (Afdis) registered a volume growth of 47% for the quarter as the unit expands the route to market model to access more channels. Market supply was affected by the shortages of key imported ingredients,” said the Corporation.

In addition, the company said Schweppes Holdings Limited recorded a beverage volume growth of 44% for the quarter on the back of improved product supply and recovery of market share in juice adding that the supply of juice concentrates continues to improve.

“Group revenue grew by 114% for the quarter in inflation adjusted terms and by 391% in historical cost terms. This reflects the volume recovery across all beverage categories off a low prior year base. The historical cost figures reflect lower and less frequent price increases in line with a more stable exchange rate and lower inflation in Zimbabwe. The Group has benefited from improved access to foreign currency through domestic nostro sales. This was disrupted somewhat due to the unintended consequences of the policy change under statutory instrument 127 of 2021. There are cost disparities arising from the wide exchange rate margins,” added Delta Corporation.