Beer prices slashed

HARARE - The retail price of beer has further gone down marginally by an average five cents across the whole portfolio effective today, Delta Corporation (Delta) has said.

In mid-September this year the beverages maker slashed beer prices from between five cents and 20 cents across the whole portfolio as part of efforts to bring affordability to Zimbabwean consumers.

“As most of our consumers would remember, the new prices reflect a further reduction on prices we announced on September 15, 2014. The new prices we offer today represent a 13 percent reduction in prices that were prevailing on the 1st of September 2014,” said Delta’s general manager for lager beers Munyaradzi Nyandoroh.

According to the latest statement from the listed beer manufacturer, a 375ml pint of lager is now sold at a recommended retail price of $0,90 from $0,95.

The price of a 750ml quart has been reduced from $1,60 to $1,55 while the Eagle Lager quart which remains at $1.

The magnum 660ml returnable bottle for Golden Pilsener, Zambezi Lager and Bohlingers has also remained at $1,75.

Nyandoroh added that they were also confident that the new price points would be convenient to its customers and consumers who will now have the opportunity to use the recently announced new bond coins from the Reserve Bank of Zimbabwe (RBZ).

Market watchers say the marginal reduction in beer prices is a welcome development meant to cushion hard-pressed imbibers as change issues will not be a major inhibiting factor following the introduction of the bond coins.

Finance minister Patrick Chinamasa in his 2015 national budget slashed exercise duty on clear beer from 45 percent to 40 percent with effect from January next year, a move that has further reduced the price of lager beer.

Despite beer volumes being depressed as a result of the effects of increased exercise duty since December 2012, Delta has managed to slash prices twice this year.

Chinamasa’s revision of excise duty on clear beer will positively impact on prices.

The Zimbabwe Stock Exchange-listed concern said the company remains focused on its strategy of investing for both volume and revenue growth while focusing on cost containments by improving efficiency and engaging value-chain partners.

Delta brews Castle Lager, Eagle Lager, Lion Lager, Carling Black Label, Golden Pilsener Lager, Bohlingers Lager; traditional beers Chibuku, brewed from malted maize and sorghum, available in 1 and 2-litre containers and carbonated soft drinks Coca Cola, Fanta, Sprite, Sparletta, Schweppes.

“Mindful of the need not to undermine recovery efforts by the alcoholic beverage manufacturing industry and also in view of the current depressed aggregate demand for alcoholic beverages, I propose to reduce excise duty on clear beer from 45 percent to 40 percent, thereby stimulating growth in volumes,” Chinamasa said.

“As a quid pro quo, alcoholic beverage manufacturers such as Delta Corporation have undertaken to reduce the retail price. The introduction of bond coins will go a long way to assist towards this effort.”

The beer and soft drink company of Zimbabwe, which is part-owned by SABMiller Plc, reported the slump in beer sales, which has become a key tax earner.

Comments (2)

a tax reduction on fuel would do more good than what this dishonourable minister's move. with road accidents on the increase his solution is give them more beer

tyrone - 29 December 2014

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