Delta slams local sugar producers over poor quality

Delta Corporation Limited has raised alarm over the poor quality of sugar supplied by Zimbabwe's top producers, accusing them of delivering a product that fails to meet global standards required for beverage manufacturing.

In a revealing presentation to the Parliamentary Portfolio Committee on Industry and Commerce yesterday, Delta finance director Alex Makamure criticised local sugar producers - Starafricacorporation (Goldstar Sugars), Hippo Valley, and Triangle Limited - for falling short on both quality and supply.

Delta, which operates the soft drinks business under the global Coca-Cola Company, is required to use high-grade sugar that complies with standards set by the International Commission for Uniform Methods of Sugar Analysis (ICUMSA), a global benchmark for sugar grading.

"The Delta Group uses either Bottler Grade (ICUMSA 35-50) or Manufacturer Grade (ICUMSA 100)," said Makamure. "Unfortunately, our main suppliers have consistently failed to meet the quantity and quality requirements essential for beverage production."

The beverage giant defended its decision to import sugar, citing an agreement with the Ministry of Industry and Commerce to supplement local supply due to continued shortcomings. However, Delta said importation is burdened by red tape and heavy taxes.

"Sugar is on the controlled list and requires an import permit. It also attracts a US$100 per tonne surtax, with an additional 30% import cost imposed by Statutory Instrument 50A of 2025," said the company.

These duties, Delta argued, unfairly penalise manufacturers even when local alternatives are not viable.

Compounding the situation is the newly introduced sugar tax of US$0.001 per gramme on beverages, which Delta said has already cost it and its subsidiary Schweppes Zimbabwe a staggering US$20.7 million in the financial year ending March 31, 2025.

In its submission to lawmakers, Delta further revealed that local sugar pricing remains uncompetitive, with Gold Star charging US$900 per metric tonne (MT) and Tongaat Hulett charging US$890/MT - both significantly higher than imported sugar, which lands at US$800/MT before taxes.

"The high cost of sugar, combined with the sugar tax, makes our products less competitive in the market," said Makamure.

Tongaat Hulett, a South Africa-based agriculture giant and parent company to Hippo Valley and Triangle, has also come under fire for erratic supply during off-season months between January and May. Delta reported having to resort to imports to cover shortfalls during this period.

"We have faced major operational disruptions due to unreliable and inconsistent supply from our local partners, especially when sugar mills shut down during the summer peak season," Delta told the committee.

The company called on the government to reconsider current import regulations and pricing structures, saying local producers have not only failed to meet demand but have also jeopardised the viability of beverage manufacturing through inflated costs and subpar quality.

As Delta seeks to maintain production standards aligned with global beverage protocols, the standoff with local sugar suppliers highlights deeper challenges within Zimbabwe's sugar industry - from outdated production systems to regulatory bottlenecks.

Efforts to get a response from Starafricacorporation, Hippo Valley, and Triangle Limited were unsuccessful by the time of publication.