admindistribution chain.
The review in margins comes hard on the heels of a previous one which reduced the margins from 7 to 5 percent.
Delta Beverages manufactures and distributes lager beer, traditional sorghum beer and sparkling soft drinks.
Wholesalers are accusing Delta of seeking to boost its profits at their expense through these periodic reviews and by promoting direct contact with the market by placing less value on traditional distribution channels (wholesalers and retailers).
In terms of its own distribution network, Delta has 38 beverage centres and seven customer collection depots.
One wholesaler who spoke to Herald Business on condition of anonymity said Delta was “abusing” its monopoly status.
“Delta continues to eat into our margins as distributors while they make more and more profits,” said the wholesaler. “They are taking us for granted because they are the sole player in this industry.
“This is also reflected in their supply side where we are now hardly getting any pints as well as some brands such as Castle, while selected outlets always have these in stock.” Questions sent to Delta management this week had still not been answered at the time of going to print.
Delta head of corporate affairs Mr George Mutendadzamera (who usually responds to the media) is said to be out of the country.
Earlier this week, Delta held a meeting with 13 selected wholesalers and retailers, at which several others were not invited — described by some of the disgruntled agents as a “divide-and-rule” tactic.
A wholesaler, one of 13 at the meeting on Monday, told this newspaper the manufacturer was standing firm on its decision to reduce wholesaler margins to 2,6 percent. But the wholesaler said Delta had said it would soon improve on the supply side challenges once its new production plant was commissioned in a “few months’ time”.
As a result of the problems with Delta, the wholesalers and retailers are considering plans to establish a Liquor Retailers Association to lobby for their interests.
Meanwhile, a source close to the issue said the Liquor Licensing Board had planned for a “liquor industry stakeholders’ meeting” today and has invited representatives from Delta, the Retail Association of Zimbabwe, Zimbabwe Republic Police Licence Inspectorate, and the City of Harare health director, among other key players. According to the source, the meeting is aimed at finding a solution to the steadily deteriorating relationship between Delta and the retailers and wholesalers.
Delta’s lager beer business manufactures such brands as Castle Lager, Castle Milk Stout, Golden Pilsener, Lion Lager, Carling Black Label, Zambezi Lager, Zambezi Lite Lager, Bohlinger’s Lager, Eagle Lager, while its traditional beer business consists of Chibuku and Rufaro.
Online Reporter