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US$17million Beverage Plant Commissioned in Bulawayo, Zimbabwe

 

PROJECT NEWS

Reported by Peter Banda in Harare

25 August 2015 – Harare, Zimbabwe – Zimbabwe’s market leader in Beverages Production, Delta Beverages Ltd, has commissioned a brand new US$17 million opaque beer plant in the country’s second largest city, Bulawayo. The plant was completed in July 2015 and is now operational following official opening done in the same month.

150825-pmwj38-bulawayo-IMAGEGiving a trading update at the company’s Annual General Meeting early in August 2015, Delta Chief Executive Mr Pearson Gowero said following the commissioning of the ‘Chibuku’ beer plant the company is now focused on growing sorghum beer business. Chibuku is the brand name of the popular local opaque beer brewed from sorghum as the main ingredient.

“The demand for sorghum beer has been growing on the local market and following the commissioning of the Bulawayo plant and Chitungizwa. We’ll now focus on driving growth of Sorghum beer which had previously been restricted by capacity. “We’ve witnessed great demand on Chibuku and the company will enhance efficiency in distribution”, said Gowero.

Delta have another opaque beer plant in Chitungwiza, a satellite town located about 25km south of Harare. Demand at the Chitungwiza plant is currently at 9,000 hectolitres per day against current production of 6,000 hectolitres per day, according to the CEO.

With the new Bulawayo plant coming on line, Delta is projecting national capacity of Chibuku beer to increase to 3.5 million hectolitres per year closing the supply gap that is currently being experienced in the market. We started commissioning on July 26, the plant is now in production, the engineers are now putting final touches, and once at full capacity we expect to be able to meet demand”, he said. Gowero said the company’s volumes and revenues declined in the first quarter.

He said the month of July performed better compared to the first three months, as most of the categories showed resilience and positive growth. Gowero said key focus areas for the company would be grow the top line and business growth across all product categories.

“Going forward we’re looking at improving our product mix to meet the demands of our customers while reducing costs across the value chain.

The company will also focus on optimising and sustaining dividend payout”, said Gowero. Larger beer volumes for the period to June were 8 percent below the previous period while sparkling beverages were down 15 percent as consumers went for lower priced alternatives.

Non-alcoholic beverages recorded a decline of 11 percent for the quarter due, partly, to production related outrages. Sorghum beer was down 12 percent but revenue increased two percent. On the performance of other Delta subsidiary companies such as Schweppes, Mutare Bottling and Nampak, Gowero said Schweppes volumes were down 11 percent while Nampak Zimbabwe’s packaging volumes for the period were depressed in line with the performance of key customers. He said Delta, Mutare Bottling and Schweppes remain the biggest customers for Nampak Zimbabwe.

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PMZ is Zimbabwe’s largest Association of Project Managers with a membership base of over 1200. The institute has a mandate of policing the elevation of project management standards nationally through mentorship and membership services programmes. For information, visit http://www.pmiz.org.zw/ or email: [email protected].

Source: Project Management Zimbabwe