HomeBusinessDelta Corporation’s lager volume decreases

Delta Corporation’s lager volume decreases


DELTA Corporation saw its lager volume down by 29% in the second quarter ended September 30 as the depressed economic environment piled pressure on consumer spending, the beverages maker has said.


“The lager beer volume is 29% below prior year for the quarter and down 25% for the six months,” Delta said in a trading update yesterday ahead of the publication of the financial results on November 13.

Delta said the total beverage volume was down 3% and 1% on prior year for the quarter and six months respectively.

However, sorghum beer recorded a growth in volume during the period under review.

“The sorghum beer category continues to record growth, up 12% for the quarter and 14% above prior year for the six months. Chibuku Super has been rolled out nationally and is driving the overall category performance,” it said.

There has been a significant shift to sorghum beer as imbibers look for alternatives due to low disposable income.

It said the economic performance remained depressed with significant pressure on consumer disposable income.

It said the soft drinks volumes comprising both Sparkling and Alternative beverages were down 8% for the quarter and 6% below prior year for the six months. The Maheu and dairy mix beverages continued to record growth.

The decline in volume would have an impact of revenue, the beverages maker said.

“Revenue is down 5% for the quarter and down 4% for the six months, reflecting the notable changes in the sales and product mix in favour of value propositions. This will have a bearing on the financial performance,” it said.

Delta said “further interventions to stimulate volume and grow value have since been implemented”.

Recently, Delta slashed the prices of beer across all categories in response to the falling consumer demand.

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