By Jonathan Mbiriyamveka
The sparkling beverages segment of Delta Corporation faced significant headwinds in the third quarter of 2024, recording a 16% volume decline compared to the previous year.
While year-to-date performance showed only a 1% drop, the quarterly figures underscore the mounting pressures from the sugar tax and competition from imported products.
According to Delta Corporation trading update for 3rd Quarter ended 31 December 2024, the introduction of the sugar content surtax in January 2024 led to sharp price increases, reducing the competitiveness of local products.
This has fueled a surge in imports from neighboring countries, further challenging the segment’s market share.
However, Delta has responded with strategic interventions, including the promotion of low-sugar and zero-sugar options and introducing more affordable pack sizes.
The relaunch of the Maheu offerings under the Shumba Maheu brand, featuring expanded and improved flavor ranges, represents a significant step towards reclaiming consumer interest.
While these initiatives have helped recover some market share, exchange rate disparities and tax-induced pricing distortions in formal trade channels continue to hinder performance.
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