SABMiller’s Zimbabwe unit to review beer prices after sales fall

Delta Corp Ltd., Zimbabwe’s biggest company by market capitalization, is considering whether to drop its beer prices after full-year revenue and volumes slowed.

The company, which is about 23 percent-owned by SABMiller Plc, will “review the competitiveness of its offerings,” Harare-based Delta said in an e-mailed statement on Thursday. “Consumers continue to shift toward affordable brands.”

Revenue fell 7 percent in the year through March, while volumes of lager produced declined 8 percent, Delta said. Volumes of the company’s cheaper Chibuku sorghum beer gained 15 percent in the fourth quarter, cutting the full-year decline to 3 percent, due to improved availability.

Delta is battling weak consumer spending in Zimbabwe amid a crisis that has seen the economy shrink by about half since 2000. The company’s volume and revenue performance “largely mirrors the subdued economic activity,” Delta said.

– Bloomberg