By 
Delta Corporation, Zimbabwe’s largest beverage maker, continues to show resilience in the face of mixed market dynamics, with strong domestic performance offsetting operational disruptions in South Africa.
In its latest trading update for the quarter ending June, Delta reported an 8% drop in volumes at its South African subsidiary, United National Breweries (UNB). The decline was attributed to labour unrest and disruptions caused by pressure groups. While these issues have since been resolved, company secretary Faith Musinga confirmed that the impact on quarterly performance was significant.
“In South Africa, the operations were affected by unfortunate disruptions from labour unions and pressure groups, which have since been resolved,” said Musinga.
In contrast, the Zimbabwean market delivered a much brighter picture. Delta saw a 19% year-on-year increase in lager beer volumes, driven by stronger consumer demand and more stable macroeconomic conditions. The company credited the performance to increased consumer spending, itself supported by a relatively stable exchange rate, high diaspora remittances, a record tobacco marketing season, and rising gold deliveries.
Delta has also adjusted to shifting market structures within Zimbabwe, particularly the growing dominance of the informal sector. “The company is responding to significant changes to market channels arising from informal sector growth and operational pressures in formal retail sectors,” Musinga noted.
Despite lingering currency-related pricing distortions, recent policy reforms and tighter exchange control measures have contributed to improved price stability. The result has been a 25% growth in overall revenue during the quarter, led largely by the company’s alcoholic beverage portfolio.
However, not all segments are performing equally. Delta reported a soft performance in its sparkling beverages category, where it faces increased competition from the local Pepsi bottler and weakening demand. The non-alcoholic drinks division has also come under pressure from the government’s sugar content surtax, which added $4.5 million to costs during the quarter and eroded pricing margins. This, combined with smuggling and cheaper imports from neighbouring countries, has challenged Delta’s competitiveness in that space.
Still, the company’s ability to grow in a complex operating environment has been notable. With 85% of its sales now conducted in US dollars, Delta continues to benefit from dollarisation trends that reflect broader shifts in consumer behaviour. The move toward USD transactions has offered a cushion against currency volatility, helping to preserve value in real terms.
While the broader economy remains fragile, there are signs of recovery. According to IH Securities, private consumption in Zimbabwe is expected to rebound from 2.5% in 2024 to 6.6% in 2025, supported by rising household spending. Delta, in turn, appears well-positioned to benefit from this momentum.
Yet challenges remain. Wage statistics from Zimstats reveal that more than half of employed Zimbabweans earn less than US$100 per month, a stark reminder of the limits to consumer purchasing power. Recent job losses in sectors like agriculture and domestic services further highlight the uneven nature of the recovery, even as fields such as IT and energy have remained relatively stable.
Nonetheless, Delta’s continued revenue growth and market share gains underscore its adaptability and strong brand position. As operations in South Africa stabilise and the Zimbabwean economy inches toward a more sustainable footing, the company appears set to extend its lead—albeit in a region where volatility remains the norm rather than the exception.
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