ZIMBABAWE’S largest beverages manufacture, Delta Corporation, says it is tying up a deal to acquire United National Breweries (UNB) of South Africa.
By Freeman Makopa
UNB manufactures and distributes traditional African (sorghum or opague) beer in South Africa.
The products are marketed under the Chibuku, Leopard, Ijuba, Tlokwe and Joburg beer brands, and the traditional non-alcoholic maize-based energy drink, City Mageu.
“Delta Corporation has entered into binding agreements to acquire United National Breweries (Pty) Ltd (UNB), the leading South African traditional beer company from current owners, Diageo South Africa Proprietary Limited. The transaction is subject to customary regulatory approvals,” a statement issued at the weekend, read.
“The company hopes to leverage on it’s over 60 years experience in the sorghum beer sector. This investment fits well with the company’s multi-beverage strategy and the ambition to consolidate the traditional beer category within the region, which was revived with the recent acquisition of a controlling stake in National Breweries Plc of Zambia.”
Company secretary Alex Makamure told NewsDay that the company was working on spreading its reach beyond the local market.
“Delta is trying to diversify from the Zimbabwean market so that whatever happens in the economy, we are not hugely affected.”
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Diageo took full control of United National Breweries in April 2015 after acquiring a 50% stake in the company in 2013.
UNB operates four breweries across South Africa.
Financial details of the deal have not yet been disclosed by both companies.
