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Delta increases lager beer price by 25%

Daniel Chigundu by Daniel Chigundu
January 7, 2019
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Delta increases lager beer price by 25%
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ZIMBABWE’Slargest alcoholic beverages manufacturer Delta Corporation has increased prices of clear beer by about 25%

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Delta’s portfolio of clear beer includes Castle, Castle lite, Redd’s and Castle Milk Stout as well as local brands such as Eagle Lager, Golden Pilsner and Zambezi.

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The company has of late been struggling to access foreign currency to import some of its raw materials needed in the manufacture of these beer brands as well as sparkling beverages.

In a statement the Zimbabwe Stock Exchange listed concern said the adjustment has been necessitated by the increase in local costs.

“Delta Beverages has increased the wholesale prices of clear beer by an average of 25%. The recommended retail prices have been adjusted accordingly.

“The adjustment of the wholesale price is meant to cushion against the significant increase in local costs, as confirmed by the official inflation statistics. It also addresses the value share with the retail partners,” said the company.

The statement also added that “the company is still assessing the cost impact on its other products. The company notes the reports about hikes in the retail prices of its products. These prices do not reflect the cost of acquiring the beverages from Delta.

“We commend the modern trade channel that continues to charge recommended prices. We urge our other retail partners to be considerate in dealing with the consumer,” said the Delta Statement.

However, since beer is a major component in the tourism sector, it remains to be seen how the sector will respond to the price increase by the beverages company.

Only last week, Delta Corporation pulled shocker by announcing that it was now selling its products in hard currency, and it had to take the invention of government to persuade them to abort the move.

Although retailers had already increased prices of beer, Delta Corporation maintains that it had not increased its prices since February 2009 until this new 25% price increase.

Tags: Carling Black Labelchibuku superDelta Corporation milk stoutRedd's
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Daniel Chigundu

Daniel Chigundu

Daniel Chigundu is a journalist who writes about tourism, entertainment and parliamentary issues. He is a blogger and works with various organizations on their social media platforms such as OpenParlyZW. He loves to travel and taking pictures of beautiful places. He has been a journalist since September 2009.

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