DELTA Beverages is upgrading its Masvingo and Kwekwe breweries at an estimated cost of $26 million to increase the production of the Chibuku Super brand. The increase in production will be realised by the fourth quarter of 2016.
BY BUSINESS REPORTER
In a statement the company said the upgrade began this month and the supply of Chibuku Super has lagged behind demand since the brand was introduced to the market in 2012. The company said capacity added at Fairbridge Brewery in October 2015, has already been fully extended.
“The upgrade in the production facilities and new technologies at the two breweries is expected to cost about $26 million. The major cost will be on the PET packaging plants and brewing tanks, grain handling equipment and civil works,” Delta said.
Machinery for the plant will be imported from Germany and South Africa and local partners have already been awarded contracts.
The company, at the moment, has a capacity to supply 220 000 hectolitres of Chibuku Super in the 1,25-litre pack from the two factories at Chitungwiza and Fairbridge
The upgrade will increase this to 240 000 hectolitres when the additional brewing tanks are installed at Fairbridge by March.
Delta Beverages has 15 brands and over 4 000 employees. For the third quarter ending December 31, 2015, lager volumes dipped by 14% compared to the second quarter as consumers shifted to cheaper alternatives. The volumes were down 6% for the nine months to December 2015.
Delta Corporation volumes and revenues were subdued during the third quarter due to depressed aggregate demand.