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SABMiller's Zim partner reports revenue drop

Harare - SABMiller’s [JSE:SAB] Zimbabwe-based associate Delta Corporation said on Tuesday subdued volumes across all beverage categories has seen revenue drop by 8% for the six months ended September 30 2015.

In a trading update released on Tuesday, management said the trading environment remains challenging mainly due to depressed aggregate demand.

Total volume was down 2% for the period under review, driven by  contrasting volume performances across its beverage categories for the second quarter to September 2015.

“Lager beer volume is 5% up on the prior period for the quarter, mainly driven by the economy segment,” said the company.

Sparkling beverages are down 14% compared to the same quarter last year.

The sorghum beer category recorded a volume decline of 12% for both the quarter and the six months.  

“The drop in soft drinks volumes is partly due to increased competition, particularly from imported lower priced alternative offerings,” said Delta.

South African carbonated drink Twizza is now the favoured cheaper offering for cash constrained Zimbabweans as a 2 litre bottle retails for US$1 against Delta’s Coke, which sells for $2.25.

* Malcom Sharara is Fin24's correspondent in Zimbabwe.

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