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Oliver Kazunga Senior Business Reporter—-
DELTA Beverages has submitted an application to the Bulawayo City Council seeking a dedicated water supply pipeline at its new $16 million Chibuku Super plant in Fairbridge. The giant beverages maker has started installing equipment at the new plant, which is set for commissioning this month. It is hoped the new Chibuku Super plant, which has a capacity to produce 330,000 litres a day, would go a long way in closing the supply gap in the market and increase revenue earnings.
According to latest council minutes, the city council has accepted Delta’s request for a dedicated water supply pipeline that would run directly from the city to the Fairbridge plant as well as connect the brewery’s effluent system to the local authority’s sewer system.
“Since Delta Fairbridge Brewery was already receiving BCC municipal water despite being in Umguza District, it was recommended that BCC accedes to Delta’s request for a dedicated water supply pipeline,” said council.
At the moment, the Fairbridge brewery is receiving municipal water through a pipeline that supplies other entities in the area.
The brewery would not be able to reach its new capacity without the adequate pipe size to absorb the new expansion.
BCC has indicated that Delta will bear the costs of constructing the pipeline and on completion of the project be supplied with a meter dedicated to the new line.
The brewery will pay for water consumption directly to the local authority.
“Delta will also be responsible for maintenance of the pipeline to the satisfaction of BCC,” said council.
Delta recorded a 17 percent drop in lager volumes for the full year ended March 31, 2015, driven by subdued consumer demand.
During the financial year, the beverages maker posted a four percent drop in revenue due to lower sales value and volumes in lager and sparkling beverages.
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