The day-to-day heroism of running a brewery
The stock market-listed Delta Corporation, in which SABMiller Africa now holds a 36 percent interest, had previously been a significant contributor to SABMiller’s Africa operations.
However, in 2005 the business stopped paying dividends and remitting capital due to foreign currency shortages and in 2006 SABMiller ceased to include the results of Delta in its reporting. Following the effective “dollarization” of the economy in 2009, the end of hyper-inflation and the stabilisation of the Zimbabwean economy, SABMiller is including its share of Delta’s volumes and financial results in its reporting from the beginning of the current financial year, SABMiller announced in October 2010.
Delta is the largest brewer and soft drinks bottler in Zimbabwe, with additional interests in the production of malted barley, the manufacture of PET plastic products, food processing and the production and distribution of wines and spirits. It has an approximate 90 percent share of the beer market and 85 percent of the soft drinks market in Zimbabwe, SABMiller said.
Whilst not included in SABMiller’s results, in the year ended 31 March 2010 Delta’s sales volumes (based on SABMiller Africa’s 36 percent interest) were 0.4 million hl of lager, 0.3 million hl of soft drinks and 1.1 million hl of other alcoholic beverages.
Its key lager brands include Castle Lager, Eagle, Lion Lager, Carling Black Label, Golden Pilsener and Bohlinger’s. Its soft drinks portfolio includes a range of Coca-Cola brands and it also manufactures Chibuku, the market leader in the traditional sorghum beer category.
Joe Mutizwa, Chief Executive of Delta, commented: “Managing the company over the past eight years has been the business equivalent of white water rafting. The challenges have been large, varied and relentless. … Our motto was: ‘If it is to be, it is up to us!’ My team lived up to this motto and now we are enjoying a remarkable turnaround. It has been well worth it! We are now better placed to face new and different challenges going forward.”
Good luck to them.
