Zimbabwe’s Delta Corporation, the country’s largest beverage maker, recorded a 18% fall in first quarter larger sales compared to same period last year on reduced consumer spending. In the period, trading in alcoholic beverages was restricted to off-premise outlets for home consumption in line with the Covid-19 guidelines.
“Inflation and depreciation of the Zimbabwe dollar accelerated during the quarter leading to more frequent price increases at a time when consumer disposable incomes were constrained,” Delta said in a trading update on Friday.
In the same vein, volumes for the popular and cheaper sorghum beer declined by 51% during the quarter under review. This was attributed to limited access to the market particularly in trade channels such as bottle stores and bars.
However, sales of carbonated soft drinks were up 35% for the quarter compared to prior year. Delta said that the supply of key raw materials is stable although they could be logistical challenges arising from the Covid-19 restrictions. Inflation adjusted revenue was 5% below prior year. The company added that it owed US$60 million to foreign suppliers.