- Sorghum beer sales declined by 11% in Zimbabwe
- 8% in South Africa, and 20% in Zambia due to illegal strikes, blackouts
- Competition intensifies with Innscor's Nyathi gaining some market share
Harare- Delta Corporation, a blue-chip entity listed on the Zimbabwe Stock Exchange (ZSE), has encountered significant headwinds in its sorghum beer segment, resulting in diminished sales volumes domestically and regionally.
The company's foreign subsidiaries, United National Breweries in South Africa and Natbrew Zambia, have been adversely impacted by exogenous factors, including prolonged industrial action and severe load shedding.
The South African operation experienced an 8% decline in sales volume during the first half of 2025, despite the commissioning of the state-of-the-art Chibuku Super Plant. To counteract this, the company aims to expand Chibuku Super's presence in new trade channels and recruit additional consumers through targeted marketing initiatives.
Natbrew Zambia faced substantial challenges due to severe load shedding, impacting product supply chain dynamics and resulting in a 20% decline in half-year sales volumes. Although the installation of diesel generators and boreholes has stabilized manufacturing operations, value chain gaps persist.
Domestically, Delta's sorghum beer sales volumes decreased by 11% year-over-year, primarily due to ceased exports and a 3% decline in domestic volumes.
The sorghum beer category is vulnerable to drought-induced reduced disposable incomes and cost pressures on key cereals.
Intensifying competition from alternative alcohol categories and smuggling activities exacerbate these challenges.
The market has become increasingly competitive, with Delta's commanding share of the opaque beer market slipping to 87% from 92% following Innscor's launch of Nyathi.
Delta maintains a competitive advantage due to its scale, with a monthly capacity of 400,000 hectoliters.
To mitigate these challenges, Delta must implement strategic initiatives focused on product diversification, targeted marketing campaigns, and research and development (R&D) to address generational changes in consumer preferences. Introducing new flavours, variants, or packaging can help revitalize the brand.
To ensure long-term sustainability, Delta should focus on diversification and innovation, targeted marketing strategies, R&D, operational efficiency improvements, and strategic partnerships.
Therefore, Delta's ability to adapt to changing market conditions will determine its success in the sorghum beer market.
Equity Axis News