admin
Business Reporter
Delta Corporation lager volumes have stemmed the declining trend in preceding quarters after they recorded a 12 percent growth in the first quarter to June above the comparative period last year.
This helped the integrated beverage group report a 2 percent increase in revenue attributed to improved consumer spending arising from a good agricultural season.
The group said lager beer volumes recorded stronger recovery in the value brands while the soft drinks category grew 3 percent over last year with both the sparkling beverages and maheu registering growth.
“We report a positive volume out-turn which is attributable to improved consumer spending arising from a better agricultural season and the bedding down of electronic payment platforms in settling transactions,” the group said in a statement.
However, sorghum beer volumes were 5 percent down on prior year but Chibuku Super grew 9 percent in the quarter under review. Delta said the market is still to strike a balance in the demand of the standard Chibuku and Chibuku Super.
“Group revenue increased by 2 percent over prior year, reflecting the changes in product mix,” the group said in a statement.
In the first quarter report, Delta also said the company is still trading under a cautionary issued with respect to the notice received from the Coca-Cola Company advising of an intention to terminate the Bottler’s Agreements with the group entities.
This followed the merger of AB InBev and SABMIller Plc in October 2016 and the subsequent agreement in principle reached between TCCC and AB InBev to explore options to restructure the bottling operations in a number of countries.
“The relevant parties remain engaged in discussions and stakeholders will be updated on progress,” the group said.
Online Reporter