News / National
Delta explains price reviews
13 Mar 2019 at 22:46hrs | Views
LISTED beverages company, Delta Corporation, has outlined reasons behind the recently effected price increase on assorted soft drinks and beer.
Amongst the reasons Delta is citing runaway operational costs as well as foreign currency shortages for inputs.
In January the firm was forced to reduce prices following a Government intervention. "On February 14, the company increased price of 350ml pints from $1 to a recommended retail price of $1,50 while 750ml moved to $4 or more from $2.
Delta Beverages corporate affairs executive Patricia Murambinda said the rise in cost of living led the firm to offer hardship allowance to its employees resulting in unexpected expenditure as input costs (barley) on the production front substantially increased also.
The discrepancies have left the company's soft drink plant dysfunctional nonetheless the lager beer and Chibuku business continue to run at 100 percent capacity.
"The company continues to review its wholesale prices to take into account the value chain costs. Most of the local production materials and services have increased substantially in the recent months. These include a barley price top up to align with the gazetted wheat price and hardship allowances paid to employees. It is apparent that local suppliers have factored in the prevailing foreign currency premiums into their pricing.
"As indicated before, our businesses are experiencing disruptions arising from the shortages of foreign currency for imported raw materials and services.
"We are, however, currently running at full capacity on lager beer and Chibuku, while the soft drink plants are on shutdown due to an outage of concentrates," said Mrs Murambinda.
Delta Corporation Limited is a Zimbabwe Stock Exchange listed integrated beverage company with a diverse portfolio of local and international brands in lager beer, traditional beer, Coca-Cola franchised sparkling and alternative non-alcoholic beverages. It has investments in associate companies whose activities are in cordials and juice drinks, wines and spirits. Delta Corporation owns 21,4 percent of Nampak Zimbabwe and 31 percent of African Distillers.
Amongst the reasons Delta is citing runaway operational costs as well as foreign currency shortages for inputs.
In January the firm was forced to reduce prices following a Government intervention. "On February 14, the company increased price of 350ml pints from $1 to a recommended retail price of $1,50 while 750ml moved to $4 or more from $2.
Delta Beverages corporate affairs executive Patricia Murambinda said the rise in cost of living led the firm to offer hardship allowance to its employees resulting in unexpected expenditure as input costs (barley) on the production front substantially increased also.
"The company continues to review its wholesale prices to take into account the value chain costs. Most of the local production materials and services have increased substantially in the recent months. These include a barley price top up to align with the gazetted wheat price and hardship allowances paid to employees. It is apparent that local suppliers have factored in the prevailing foreign currency premiums into their pricing.
"As indicated before, our businesses are experiencing disruptions arising from the shortages of foreign currency for imported raw materials and services.
"We are, however, currently running at full capacity on lager beer and Chibuku, while the soft drink plants are on shutdown due to an outage of concentrates," said Mrs Murambinda.
Delta Corporation Limited is a Zimbabwe Stock Exchange listed integrated beverage company with a diverse portfolio of local and international brands in lager beer, traditional beer, Coca-Cola franchised sparkling and alternative non-alcoholic beverages. It has investments in associate companies whose activities are in cordials and juice drinks, wines and spirits. Delta Corporation owns 21,4 percent of Nampak Zimbabwe and 31 percent of African Distillers.
Source - BH24
