Beverage maker Delta Corporation says it will rebrand its iconic Scud sorghum beer before year end as part of group’s cost cutting measures to improve revenue growth.
At the company’s annual general meeting chief executive, Pearson Gowero told shareholders that the Chibuku Breweries have also been rationalised to 8 from 15 as the company now look to leverage on the expanded Chibuku Super capacity.
“Before end of the current financial year, the Group will introduce a new packaging of the scud to a returnable container which is in support of revenue growth strategy,” he said.
In a trading update for the four months of the group’s financial year, Gowero said volumes in the Sorghum beer was down 5 percent on prior year with, however Chibuku Super recorded a 9 percent growth.
Lager beer volumes were up 12 percent during the period compared to prior year.
The Eagle lager sales were up 24 percent as consumers continue to prefer lower end brands.
Castle Lite and Zambezi sales are strong and maintained double digit growth, Gowero added.
The soft drinks category was up three percent, with both the sparkling beverages and Maheu registering growth but the group is still facing competition from imports
On associates, Gowero said Schweppes is behind on revenue and volumes.
He said the company’s Beitbridge Juicing Plant and the Best Food Processors have not yet started to input positively to the company.
Spirits and wine maker, Afdis, which is due to release its financials registered encouraging volumes and revenue while Nampak was stable but was affected by the shortages of foreign currency.
Gowero said the Bottlers Agreement with The Coca-Cola Company expires in May 2018 and negotiations are ongoing towards finding a common solution.-The Source