Delta Beverages operating at 60% capacity

Home/Company/Delta Beverages operating at 60% capacity

Listed beverage producer, Delta Beverages, is currently operating at between 40% and 60% of its capacity due to a decline in demand for its products witnessed since 2013, an official has said. Company secretary, Alex Makamure said the company has recorded significant declines in its volumes and subsequently revenue performance since 2013 as a result of the imploding economy. Makamure said lager beer volume for the half year to September 2016 was 36% down on same period in 2013; soft drinks are down 18%. “The volume trends reflect the current capacity utilisation of 40 to 60%,” he said. The company now employees a total 4 800 employees down from 5 500 in 2013. Makamure said the company’s strategy for this year is to survive the bad patch and remain connected to their consumers. – NewsDay, 18 Janaury 2017

Government should consider using monetary and fiscal policy instruments to stimulate economic activity and deal with deflationary pressures the country is going through as the year on year inflation rate for December 2016 remained in the negative at -0.93%. Although the December inflation gained 0.16 percentage points on the November rate of -1.09%, economists said deflation is more difficult to contain than inflation and one of the economic ills which are rarely found in most economies. The year on year inflation rate means that prices as measured by the all items CPI decreased by an average of -0.93% between December 2015 and December 2016. The month on month inflation rate in December 2016 was 0.06% gaining 0.04 percentage points on the November 2016 rate of 0.02%. – The Herald, 18 January 2017

The mining sector will not reach its full potential in contributing to the country’s economic revival as long as the 2017 National Budget does not introduce measures to drive growth in the sector, the Speaker of the National Assembly, Advocate Jacob Mudenda, has said. Officially opening a post-budget seminar in Harare on Monday, Advocate Mudenda said only after exploration and objective quantification of the vast mineral resources can Zimbabwe negotiate with potential investors from an informed position. He called on Mines and Mining Development Minister Walter Chidhakwa to facilitate urgent formulation of an Exploration Bill to address legislative deficiencies noted by the portfolio committee on Mines and Mining Development. – The Herald, 18 January 2017

The wet spell being experienced throughout the country could slightly dent tobacco production, Zimbabwe Tobacco Association chief executive Rodney Ambrose said. Over the past few weeks, most parts of the country have been receiving normal to above rains with isolated cases of floods reported  Farmers are expected to produce between 200 million kilogrammes and 205 million kg this year, almost the same crop size achieved last season. However, the production estimates are still provisional and subject to revision, said Ambrose in an interview. “We are looking at the same crop size but if the current wet spell persists, there would be a slight reduction (from the initial estimates,” he said. – The Herald, 18 January 2017

By |January 18th, 2017|Categories: Company|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.