By Jonathan Mbiriyamveka
Delta Corporation‘s regional operations are telling two very different stories: while Zimbabwe delivers double-digit growth, its South African and Zambian businesses are struggling to find their footing.
The beverages giant’s first-quarter trading update, covering the period ended 30 June 2026, reveals a sharp divergence across its three operating markets—a contrast that underscores the importance of macroeconomic conditions, policy stability and execution capability in determining business performance.
Zimbabwe: The Star Performer
Zimbabwean business units, excluding regional subsidiaries, recorded beverage volume growth of 18%.
Lager beer grew 17%, traditional sorghum beer in Zimbabwe jumped 20%, and the non-alcoholic beverages portfolio—including Schweppes—delivered combined volume growth of 14%.
The performance was underpinned by the stability of the ZiG currency, low inflation, firm economic activity and buoyant consumer spending flowing from mining, tobacco marketing activities and agricultural output.
South Africa: Modest But Meaningful?
United National Breweries (UNS) in South Africa painted a less rosy picture, recording a volume decline of 7% compared to the prior-year quarter.
Traditional African beer volumes remained under pressure in selected inland regions, though premium carbonated offerings continued to gain penetration in formal outlets.
The decline reflected route-to-market disruptions following the scaling back of some principal distributors, recurring community-related interruptions, affordability pressures and intermittent product-availability gaps .
However, there are signs of stabilisation. Operating conditions in South Africa showed gradual improvement, supported by a firmer Rand and some interest-rate relief.
The KwaZulu-Natal brewery is now operational and is improving service levels and logistics efficiency in the coastal market while reducing reliance on distant manufacturing sites.
The refreshed Ukhozi Mageu range was also launched, with encouraging early consumer acceptance.
Zambia: The Deepest Decline
National Breweries Zambia recorded the most significant setback, with volumes declining 12% compared to the prior-year quarter.
The decline mainly reflected plant reliability and route-to-market constraints which affected product availability across both Chibuku Super and traditional Chibuku Scud formats.
Profitability remained affected by low capacity utilisation, fixed-cost under-recovery and the cost of rebuilding distribution capability.
This continues a difficult trend for the Zambian operation, which had previously seen a sharp 41% volume decline in earlier periods, largely attributable to prolonged power outages and the prohibitive cost of alternative electricity.
The Zambian economy continues to stabilise, assisted by declining inflation, lower interest rates, a firmer Kwacha, higher copper prices and improved electricity generation.
However, higher fuel prices and the period leading up to the August 2026 general elections remain key watch points.
Regional Strategy Under Scrutiny
Management remains committed to the Zambian operation, recognising that sorghum beer production is structurally cheaper in Zambia than in Zimbabwe.
A withdrawal now would leave the market open to competitors and undermine the Group’s broader regional strategy.
The focus in Zambia remains on stabilising production, rebuilding distribution capability, improving retail execution and strengthening the packaged beer portfolio
For South Africa, management is focused on stabilising product availability, strengthening route-to-market execution, deepening formal-trade penetration and restoring sustainable profitability.
Whether these strategies will be sufficient to narrow the gap with Zimbabwe’s stellar performance remains to be seen. For now, Delta’s regional story is unmistakably one of divergence—with Zimbabwe driving the Group’s growth engine while its neighbours work to recover lost ground.
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