Delta Corporation faces labour challenges in South Africa while thriving in Zimbabwe

ZIMBABWEAN beverage giant, Delta Corporation, is experiencing contrasting fortunes in its regional markets after it battled labour disruptions in South Africa and recorded brisk business for its lager beer volumes back home, driven by tobacco sales and resurgent gold prices.

- TAWANDA KAROMBO

In South Africa, Delta's subsidiary United National Breweries volumes fell by 8% in the quarter to the end of June.

Delta's company secretary, Faith Musinga, said United National Breweries “witnessed some unfortunate disruptions from labour unions and pressure groups” in South Africa during the quarter under review. However, she said this has now been resolved.

In contrast, Delta said it has been experiencing Significant changes to market channels arising from the informal sector growth, operational pressures in formal retail sectors” as well as “varied application of route-to-market” regulations in Zimbabwe.

The company also had to operate against the currency exchange rate related price distortions and challenges facing the formal retail channels in Zimbabwe.

Nonetheless, “signs of strong consumer spending” driven by what the company described as stability in the local currency exchange rate, a record-breaking tobacco marketing season and increased gold mining activity helped drive up volumes in Zimbabwe.