Delta Beverages of Zimbabwe announced on Monday that prices for its beers would go up by 25% as it tries to stem escalating prices of local materials and services.
Delta which is 40% owned by AB InBev and 14% by Old Mutual Zimbabwe, said that the price increase was effective from Monday. However, it added that it had not made a decision on new pricing for its soft drinks and other products.
Delta Beverages Limited, Zimbabwe’s largest brewer and a subsidiary of AB InBev has withdrawn plans to exclusively start charging its wholesale and retail customers in U.S. dollars following an intervention by the government and the country’s Central Bank.
Delta Beverages Limited, a subsidiary of Delta Corp of Zimbabwe, said on Wednesday it will start accepting U.S. dollars as the only payment option for its soft drinks from wholesale and retail customers starting Friday, 4th January.
The company said that the move was necessary to protect its $600 million investment in plant and equipment, vehicles and ancillary services.
Diageo Plc announced on Thursday it has entered into an agreement for the sale of United National Breweries (UNB), a maker of sorghum-based traditional African beer called Chibuku in South Africa to Delta Corp of Zimbabwe.
The British-based alcoholic beverage firm said that the transaction is subject to regulatory approval and expected to close in the second-half of 2019.
Delta Corp, Zimbabwe’s largest company and a subsidiary of Anheuser-Busch InBev is a leader in sorghum-based beer with its own brand of Chibuku. The purchase by Delta would be its second outside of Zimbabwe. It acquired Zambia’s National Breweries Plc, also a brewer of Sorghum-based Chibuku Shake-Shake in January, making it the largest producer of such brand of beer.
The Coca-Cola Company (TCCC) has pledged to increase its investment in Zimbabwe by US$65 million over the next three years as the Southern African country seeks to attract foreign investment following years of Western sanctions and the recent change in leadership.
The Managing Director, Coca-Cola East and Central Africa, Mr Ahmed Rady met with President Mnangagwa and Vice President Constatino Chiwenga separately on Thursday to discuss its plans and future investments in the country.
Delta Corporation, Zimbabwe’s largest brewer and a unit of AB InBev said on Thursday that it has reached an agreement to acquire a controlling interest in National Breweries of Zambia.
In a released statement, Delta said that equity is being acquired from Heinrich’s Syndicate, also a subsidiary of AB InBev.
“The equity is being acquired from Heinrich’s Syndicate, a subsidiary of AB InBev. The transaction is subject to various regulatory approvals. The impact of this transaction is currently being determined but is not material for Delta,” said Alex Makamure, Delta’s Company Secretary.
Delta Beverages Limited, Zimbabwe’s largest brewer and Coke bottler is weighing its options on how to navigate an uncertain future after a likely asset separation deal from The Coca-Cola Company (“TCCC”) which could see it give up a third of its operating profits.
Atlanta-based Coca-Cola Company (TCCC) has given notice of its intent to terminate the bottler’s agreement it has with Delta Beverages Limited, Zimbabwe’s largest brewer.
