HomeBusiness DigestDelta stops lager exports

Delta stops lager exports

Roadwin Chirara

DELTA Corporation Ltd has stopped exporting its lager beers because of depressed sales in the export market.

a, sans-serif”>Delta said sales volumes for its export brands had slumped and were failing to contribute significantly to the company’s earnings.

“A deliberate decision has been made to curtail lager beer exports due to viability problems and as a result lager export sales amounted to just $723 million out of a total sales value of over $310 billion for the year,” said Delta chairman Robbie Mupawose.

He said the company’s domestic market remained slow especially during peak periods.

“Lager volumes were 23% lower than those of the prior year,” Mupawose said.

He said this situation reflected a soft demand on the domestic market mainly because customers reduced speculative stock-holding.

Mupawose said volumes of Chibuku ended the year 14% lower compared to last year’s figures.

He however said the sales for Delta’s sorghum beer were encouraging, with packaged beer making up 90% of volumes compared to 86% during the prior year.

Mupawose said the growth of Delta’s packaged beer was affected by the lack of capacity by the company’s supplier to meet demand for container lids.

“During the year, the growth of this package became constrained by the lack of capacity at our suppliers to produce lids in sufficient quantities,” said Mupawose.

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