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Delta Beverages has conceded that it has “run out of capacity” to meet surging demand for beer and soft drinks. This has prompted the beverages giant to fast-track a US$120 million capital expenditure programme aimed at boosting production by more than a third before year-end.
Speaking to stakeholders, Delta CEO Matlhogonolo Valela acknowledged that the company underestimated the pace of recovery in consumer demand, leading to persistent stock-outs across multiple categories.
“We are investing behind our growth, but ahead of demand. In some of our categories, we missed the demand forecast and were pleasantly surprised by the market support,” Valela said.
The US$120 million expansion adds to the US$44 million already deployed over the past year, meaning Delta is committing roughly US$164 million to capacity upgrades in a 24-month window.
The immediate priority is solving a critical supply bottleneck. Valela revealed that Delta has completely exhausted the capacity installed just three years ago, resulting in “intermittent out-of-stock situations” across its portfolio.
“We are operating at capacity. We have run out of capacity that we installed three years ago,” he said.
The company plans to increase overall capacity by 30% to 35%, pushing beyond 4 million hectolitres. The expansion programme is already underway, with new installations coming online in stages from September, peaking in November, just in time for the critical Christmas trading season.
Key projects include a new brewhouse and packaging line in Bulawayo, a second packaging line for the Belmont facility, an additional packaging line in Southerton, and a complete rebuild of the Kwekwe malting plant.
The Kwekwe facility is particularly telling of Delta’s capacity crunch. Valela noted the plant was last upgraded in 1949 or 1956, and while maintenance has been diligent, it is now rated for just 40,000 tonnes of barley, a volume Delta expects to fully utilise in 2027.
“We are redoing our malting plant in Kwekwe. It has seen its time,” the company added. Procurement teams are already negotiating import programmes to bridge the gap until new capacity comes online.
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