SABMiller's Zimbabwe unit to cut costs, prices after sales fall


SABMiller’s Zimbabwean affiliate Delta Corp plans to cut costs and reduce the price of some products after reporting a decline in beer and soft drink sales, the company said on Wednesday.

Delta, which is 38 percent owned by SABMiller, reported lager beer volumes fell 2 percent in the six months to September while volumes of the cheaper sorghum beer and soft drinks declined 10 and 15 percent respectively.

SABMiller received a 100 billion-plus US dollars takeover offer from the world biggest brewer Anheuser-Busch InBev on Wednesday. AB InBev is hoping SABMiller will give it a foothold in growing African markets.


Delta, which has already cut the price of lager beer, plans to reduce the price of soft drinks after sales were hit by competition from cheaper imports and weaker demand, chief executive Pearson Govero said.

The company’s total revenue for the period decreased 8 percent to 269 million US dollars. Profit fell to 36 million US dollars, down from 45 million US dollars last year.

Govero said power cuts, water shortages, higher taxes and a stronger dollar made it difficult for Delta to compete with imports from Zambia and South Africa.