SABMiller’s Zimbabwe unit to cut costs, prices after sales fall

7
951

SABMiller’s Zimbabwean affiliate Delta Corp plans to cut costs and reduce the price of some products after reporting a decline in beer and soft drink sales, the company said on Wednesday.

Reuters

Delta, which is 38 percent owned by SABMiller, reported lager beer volumes fell 2 percent in the six months to September while volumes of the cheaper sorghum beer and soft drinks declined 10 and 15 percent respectively.

SABMiller received a $100 billion-plus takeover offer from the world biggest brewer Anheuser-Busch InBev on Wednesday. AB InBev is hoping SABMiller will give it a foothold in growing African markets.

Delta, which has already cut the price of lager beer, plans to reduce the price of soft drinks after sales were hit by competition from cheaper imports and weaker demand, chief executive Pearson Govero said.

The company’s total revenue for the period decreased 8 percent to $269 million. Profit fell to $36 million, down from $45 million last year.

Govero said power cuts, water shortages, higher taxes and a stronger dollar made it difficult for Delta to compete with imports from Zambia and South Africa.

7 COMMENTS

  1. Govero, I have a question for you and your marketing team, Why do you dictate/impose prices for retailers especially those in suburbs when you do not even know their overheads and do not care to ask.
    Its not fair because you sit and come up with the best profitable prices for your organisation that covers all your cost and then impose prices to retailers after covering yourselves and expect these retailers to prosper. let market forces rule the day. Delta wants to be seen pleasing our clients at our expense , you please us and we will please our clients or otherwise just open your walk inn and do away with us. Both wholesalers and retailers are now your agents as you keep prescribing prices as if you have an input in their licensing or any of their overheads.

    answer me please or just take note

  2. Govero and your marketing team can you answer me this issue. Why is it that you impose /dictate prices to retailers especially those in suburbs without due care for their overheads and related cost. You please your retailers customers at the expense of retailers when you do not contribute anything to them the retailers, infect you have turned wholesalers and retailers to be your agencies without contributing anything to them, they do not have a say in your price model but you do in theirs. After you comfortably cover your cost and work you desired profit you price your goods for retailers and wholesalers, then you impose prices for your products to retailers without even due care for their overheads. This is not fair you acting bully. Please Delta respond.

  3. infect the retailers and wholesalers are running at a loss while you are profiteering , all they have become is a distribution channel for Delta. You do not have to impose prices to final customers the law of demand and supply should work it this out all you can do is recommend , but your threats of coolers being reposed because of non compliance with recommended prices is all your reps preach everyday
    its either you as delta you playing unfair or your reps are miss informing with threats of repossessing coolers

  4. categorically stating beer is expensive in Zimbabwe compared to other southern African countries, Beer prices must fall to $.65 a pint. cokes and assorted drinks must be $.30

  5. At least your pricing shuld match our neigbouring countries.surely it is naive to find same crate of 24x300ml going for $8.00 including deposit in Zambia while u stl cling to $17.60 incl deposit.Don’t blame border town residents for shunning your products, they are nd v bn always expensive.

Comments are closed.