Delta Beverages expands capacity

SAMANTHA MADE

Delta Corporation Limited is ramping up investments in production capacity and strategic infrastructure as it positions itself for continued growth in Zimbabwe’s dynamic beverage market, Business Times can report.

During an analyst plant tour on Wednesday, managers from Delta’s various units showcased the group’s operational performance, capacity expansion initiatives, and market strategies aimed at consolidating its market leadership.

Marshall Pemihwa, General Manager of the Chibuku division, highlighted the company’s bullish outlook for the 2026 financial year.

“Just this year alone — that’s your F26 — you can see that we are projecting to end at about 4.3 million hectolitres, which is 11% up from last year. So, quite a bullish number that we are chasing,” Pemihwa said.

He added: “The first quarter we are already showing, and this is a number that we have seen in our quarterly update, we are already 11% up from prior year, and growing 4% toward the target that we are chasing.”

To meet growing demand, Delta has invested significantly in critical infrastructure, particularly in water and power solutions. Pemihwa revealed that the group, in partnership with local authorities, secured a dedicated water pipeline and added storage tanks at several sites.

“Just recently, we installed a very big generator — a 1,000 kVA — to support us when there’s no power. At Fairbridge, where we face plenty of water shortages in that part of the region, we had to install a state-of-the-art water treatment plant,” he said.

He emphasized that the group’s capital expenditure is aimed at ensuring uninterrupted supply. “So as it is, I think we have invested quite sufficiently to be able to meet local demand.”

Providing specific figures, Pemihwa added: “The water tanks are costing us that much — Fairbridge, the water treatment plant, over there as you can see the pictures, costing us about US$739,000; Masvingo water tank, similarly costing us US$225,000; the generator there at Masvingo, and Harare.”

Despite significant market share, Pemihwa acknowledged rising competition in the opaque beer segment.

“We’re operating in a highly competitive landscape,” he said. “These include Nyati, which is in its third year in the market; Ngoda, with a new offering called Mamba (a Marula product) launched about two weeks ago; Igwebu, which expanded to PET offerings since March this year; and Gold Beer, which made a comeback in December last year with new offerings. Additionally, Pungwe is maintaining its presence in the eastern part and expanding into Mashonaland East.”

Yet, he remains confident in Chibuku’s dominant position.

“Our market share rate is currently at 85%, based on an independent rate. Our work is cut out to defend this market,” Pemihwa said.

Lucky Nkunzane, General Manager of Castle Lager, reported a strong start to the year across premium and mainstream beer lines.

“We certainly expect that trend to continue. There is no doubt about it from the stability that we are seeing,” Nkunzane said.

David Nyika, Plant Manager of the Sparkling Beverages (SB) division, echoed the group’s positive outlook, noting that additional capacity will be commissioned shortly to ease supply constraints, particularly for cooperative promotions.

“The business is on a good trajectory. This is something that we are carrying on. We are running,” Nyika said. “The key element that we spoke to is the share of co-op campaign on the SB side, which we see as ideally trying to stimulate the economy.

“We expect that our pitch will be quite commendable because of the initiatives that we are running. And also, from a capacity supply perspective — there was a question on the co-op supply — we are addressing the capacity side of the co-op effectively. We expect within this coming quarter to be commissioning the additional capacity. And that should address the supply situation on co-op. However, we also inject new gas on the real-time market,” he said.

In the non-carbonated segment, Schweppes Holdings Africa Limited’s Managing Director, Stanely Muchenje, said improved cooperation with Delta was strengthening performance.

“We have just turned the corner in terms of bringing closer working arrangements with Delta, and we are changing our ways, focusing a lot more on getting our machinery serviced and able to supply,” Muchenje said.

He noted that the partnership is also improving market access: “We are also working on our route to markets to ensure that we deliver to the final edge consuming customer. And the numbers have been actually coming through. So, we have a very positive outlook to the business. We believe that in the coming years, the trajectory that we started on can only do better.”

For Delta’s Shumba Maheu Bottling plant, business executive Margaret Gono revealed plans for new infrastructure.

“We want to come up with a new water plant for the Shumba Maheu Bottling water plant,” she said.

Delta Corporation’s aggressive investment drive — spanning water security, power infrastructure, production expansion, and distribution partnerships — underscores the group’s ambition to remain the dominant force in Zimbabwe’s beverage sector, even as new entrants jostle for market share.