Delta Invests US$40 Million as Strong Demand Strains Beer Production Capacity

By Percy Nhara | Southerton Business Times

HARARE – Zimbabwe's largest beverages manufacturer, Delta Corporation, says booming consumer demand has outpaced its production capacity, prompting a US$40 million investment to expand brewing operations and eliminate product shortages. The company revealed in its 2026 Annual Report that, unlike previous years when subdued demand and economic instability constrained growth, the main challenge is now meeting rising demand for its products.

According to the report, production facilities have been operating at near-full capacity, leading to intermittent shortages of some beer brands and packaging formats.

"Supply remained constrained by extended capacity utilisation across brewing and packaging operations, resulting in intermittent gaps across certain brands and packs and some sub-optimal product allocations across markets and channels," Delta said.

To address the supply constraints, Delta is undertaking significant capital projects at its brewing plants. The company is replacing the brewhouse and installing an additional packaging line at its Belmont Brewery in Bulawayo, while also upgrading brewing and filtration systems at its Southerton Brewery in Harare.

"The business is investing behind demand through capacity expansion projects, including the brewhouse replacement and additional packaging line at Belmont, together with brewing and filtration upgrades at Southerton Brewery, which are expected to close product supply gaps from the coming year," the report said.

The investments are expected to improve production efficiency, increase output and ensure more consistent product availability across Zimbabwe.

Delta reported strong growth across its alcoholic beverages portfolio during the financial year.

Lager beer volumes increased by 19% to 3.15 million hectolitres, while sorghum beer volumes also rose 19% to a record 4.62 million hectolitres, surpassing the previous record set in 1998.

The company attributed the growth to stronger household spending and improved macroeconomic conditions.

According to Delta, demand was driven by:

• Increased mining activity.

• Record tobacco production.

• Improved agricultural output.

• Resilient diaspora remittances.

• Improved foreign currency availability.

• Stable pricing in both US dollars and ZiG.

The company said consumer demand was also supported by strong brand loyalty and a balanced product portfolio spanning mainstream, premium and value brands.

To minimise shortages while local production remains constrained, Delta imported several regional and international premium brands, including Corona, Stella Artois, Brutal Fruit and Flying Fish, to supplement local supply. The company said supply challenges were not limited to its lager beer business, with capacity pressures also affecting other product categories.

During the financial year, Delta invested approximately US$40 million in expanding production capacity, improving operational resilience and strengthening its distribution network. The investment reflects growing confidence in Zimbabwe's consumer market, with increased demand signalling improved economic activity in key sectors. Industry analysts say the expansion could help stabilise product availability while positioning Delta to benefit from continued growth in disposable incomes and consumer spending if current economic trends persist.

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