Alcohol volumes into the market kept on growing in the first quarter despite the government-induced lockdown in Zimbabwe.
Two of Zimbabwe’s alcohol producers African Distillers Limited (Afdis) and Delta Corporation Limited (Delta) recorded volumes growing by 100% in the first quarter of 2021.
Afdis Company Secretary Lydiah Mutamuko says, “The Company (Afdis) registered a volume growth of 56% for the quarter over the same period last year owing to improved access to the market.”
Delta Corporations Limited Company Secretary Alex Makamure says his company’s high growth rates recorded in Zimbabwe for the first quarter of F22 (Financial year 22), in comparison to the prior year, partly arises from the low prior-year base.
Delta Zimbabwe’s sorghum beer volume grew by 106% for the quarter compared to the prior year according to the company’s secretary.
“Lager beer volume for the quarter grew by 139% compared to the same period last year. The volume is trending up, benefiting from competitive pricing, consistent product supply and the injection of new returnable glass,” Makamure said.
Afdis wines grew by 113% riding on improved availability according to Mutamuko.
“Spirit volume grew by 17% over prior year benefiting from the good performance of brown spirits. Widespread market acceptance of the newly introduced Gold Blend Number 9 contributed to this growth,” Mutamuko said.
Afdis’ Gold Blend Number 9 business, however, continued to witness the influx of cheap and illicit spirits in small packs from several producers in the market according to Mutamuko.
Delta’s sorghum witnessed constraints in the supply of key packaging materials due to poor availability of and logistical challenges on resins on world markets.
“Some key trade channels such as bars and beerhalls remained inaccessible under the prevailing COVID-19 regulations,” Makamure commented on sorghum beer.
In terms of lager Makamure said, “There were some supply disruptions arising from scheduled plant maintenance and utility outages.”
Delta Group revenue grew by 114% for the quarter in inflation-adjusted terms and by 391% in historical
cost terms reflecting the volume recovery across all beverage categories off a low prior-year base.
Mutamuko on Afdis said, “Revenue for the first quarter increased by 38% in inflation adjusted terms, whilst in historic terms it grew by 228%. Revenue growth was due to firm demand for the company’s products which resulted in higher volumes.”
