Zimbabwe: Delta Corporation turns to AB InBev as demand outstrips capacity

Zimbabwe’s biggest beverages manufacturer, Delta Corporation, is failing to meet demand for beer and is now stocking up with lager beer products from AB InBev in South Africa to fill the gap, The National reported on November 12.

Todd Moyo, chairman of Delta Corp, said on November 12 that demand for some brands and pack sizes was running ahead of what its plants can produce. The company was now importing Corona and Stella Artois beer brands from AB InBev in South Africa.

"Ahead of commissioning of the capacity projects, supply gaps are being partly mitigated through selected imports from sister companies in the region, including increased availability of AB InBev premium brands such as Corona and Stella Artois," said Moyo.

The long-term fix, though, is a set of upgrades at two breweries run by the company. Upgrades at the Southerton Brewery in Harare are meant to match brewing throughput to the packaging capacity already in place.

"The ongoing upgrades to the brewing and filtration systems at Southerton Brewery are being implemented to align brewing throughput with available packaging capacity and are expected to contribute additional volume from the third quarter,” Moyo explained. “At Belmont Brewery in Bulawayo, the replacement brewhouse is expected to be commissioned by December 2026, followed by an additional packaging line in the final quarter of the financial year."

Delta had also invested into returnable glass, packaging materials, crates and logistics, all of which nonetheless could hold back output even when the brewing itself is sorted.

The lager beer shortages and subsequent strategy to import from South Africa come in the wake of an 18% surge to $607 million (R10.1 billion) in revenue for the half year to September for the Zimbabwean brewer and soft drinks maker.

Volume growth in Zimbabwe and a favourable sales mix drove the revenue surge. Headline earnings per share for the half year grew 15% to the equivalent of about R0.9.

Zimbabwe’s economy has rapidly dollarised, with most purchases now in hard currency. Distribution channels have also growingly informalised.

Delta credited a steadier local currency, easing inflation and better supplies of key raw materials for the improvement.

"The Group is experiencing growth in volumes and revenues across its Zimbabwe operations, supported by currency stability, declining inflation, and improved availability of key raw materials. The foreign subsidiaries still face operating challenges," explained Moyo.

Despite the earnings growth for the half year, Delta has not been spared the wider impacts of the Middle East unrest. It said the wars in the Middle East and Ukraine have disrupted shipping routes and pushed up oil prices, freight rates and marine insurance. That raised the cost of fuel, distribution and imported inputs, particularly PET packaging, and lengthened lead times for imported equipment.

An increase in Zimbabwe's VAT rate in January 2026 added to the pressure, and Delta raised retail prices on selected packs of sparkling beverages.

Even so, it absorbed much of the increase to stay competitive.

"Trading margins were partly eroded by the increases in fuel, freight, PET packaging, utilities, imported raw materials and sugar tax costs as the Group absorbed a significant portion of these increases to address affordability. Margin loss was mitigated by strong volume growth, which delivered economies of scale through improved utilisation of the manufacturing and distribution footprint, together with disciplined cost management."

In South Africa, Delta’s United National Breweries saw volumes fall 22% in the half year. It blamed disrupted distribution after some principal distributors were scaled back, unrest and community tensions in some markets, and weak consumer spending.

Anti-immigrant sentiment and xenophobic attacks had also disrupted business for Delta in some areas in South Africa.

12 November, 2026