Zim Imbibers feel economic pinch

Business Top Stories Zimbabwe

Ndaka Majaka

ZIMBABWEAN drinkers are feeling the pinch of economic difficulties as they are failing to purchase their beverages of choice, it has emerged.

Zimbabwe’s biggest beverage maker, Delta Corporation (Delta), says it recorded a 40 percent decline in lager beer volume in the second quarter to September 30 on the back of inflationary pressures and shrinking disposable incomes.

“The company has had to implement modest but frequent price increases in response to the inflationary pressures while taking into account the affordability issues affecting consumers,” Delta said in a trading update for the second quarter.

The company said lager beer volumes for the quarter were down 40 percent compared to last year.

Usually a good performer, sorghum beer also recorded a 29 percent decline in volume for the quarter with consumers migrating to lower priced alternatives.

Volumes were also subdued for sparkling beverages, with a 36 percent decline being recorded for the quarter and 56 percent for the six months.

Meanwhile, the beverages maker did not provide the usual revenue figures as there will be a delay in the publication of the half year interim report.

The report has been deferred pending clarifications from the Public Accountants and Auditors Board (PAAB) on the implementation of International Accounting Standard (IAS) 29: Financial Reporting in hyperinflationary economies.