DELTA Beverages has slashed the prices of pints and quarts by 13% with effect from today as it gears up for the reduction in excise duty on clear beer that will be effective next month.
In his 2015 national budget statement, Finance minister Patrick Chinamasa reduced excise duty on clear beer to 40% from 45% effective January 1.
In a statement yesterday Delta said that the prices of pints and quarts will be $0,90 and $1,55per unit respectively.
“We are confident that the new price points will be convenient to our customers and consumers who will now have the opportunity to use the recently announced new bond coins from the Reserve Bank of Zimbabwe,” said Munya Nyandoro Delta Beverages general manager for lager beer business unit.
The reduction in prices is set to give a boost to lager beer volumes that have been on the decline as consumers shifted to alternatives in the wake of the depressed disposable income.
For the half year ended September 30 2014 lager beer volumes declined by 25% due to depressed consumer spending and the decline in the economy.
Sorghum beer volumes grew by 14% as consumers switched to affordable sorghum beer.
The price review is the second this year as the beverages maker stimulates demand for its products.
In September, Delta reduced the price of quarts to $1,60 from $1,75. The price of Eagle quarts was reduced to $1, 00 from $1,20.
The price of Magnum 660ml for Golden Pilsener, Zambezi lager and Bohlingers were reduced to $1, 75 from $1,80.