Delta Corporation Ltd., Zimbabwe’s biggest company by market value, said fiscal first-quarter revenue rose 8 percent as consumers shifted to a local traditional drink following a tax increase on lager.
Volume in the three months through June increased 4 percent from a year earlier, with all segments recording growth except for an 8 percent drop in lager consumption, Harare-based Delta said today in a statement published in the Herald newspaper today. Maheu traditional brew volume surged 80 percent, sparkling-beverage consumption jumped 13 percent and sorghum beer sales rose 6 percent, it said.
Lager beer sales in Zimbabwe have been curbed by an excise duty increase in December 2012 and a lack of small coinage in a multi-currency economy. The company said it’s in talks with the government on the effects of the tax increase.
Delta Corporation Ltd. is an affiliate of SABMiller Plc (SAB), the world’s second-largest brewer, which holds a stake of 25 percent, according to the London-based company’s annual report for the year through March.
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