Increased enforcement against smuggling and illegal brewing boosts uptake of formal brands, offering a rare advantage in a tough market.
By Jonathan Mbiriyamveka
HARARE – A government-led offensive against the sprawling illicit alcohol trade is providing an unexpected tailwind for legal beverage manufacturers, with Delta Corporation reporting a noticeable sales boost in some product categories as a direct result.
In its quarterly business update dated 31 December 2025, Delta noted “encouragingly, the ongoing clampdown on illicit trade and smuggling contributed to increased uptake of some of the Group’s product categories.”
While the company did not specify which brands benefited most, industry observers point to affordable, high-volume segments like sorghum beer and spirits, which compete directly with unregulated, untaxed alternatives.
The illicit alcohol market in Zimbabwe has long been a major challenge, siphoning off potential revenue, endangering public health with unregulated products, and depriving the treasury of vital tax income.
Recent months have seen increased raids on illegal breweries, border patrols targeting smuggling, and stricter enforcement of licensing regulations.
“For years, the informal and illicit sector had a significant price advantage because they bypassed all duties, quality controls, and overheads,” explained industry consultant Sheila Nkomo.
“When enforcement ramps up, that advantage shrinks. The consumer who bought cheap, unbranded spirit for price reasons may now find it scarce or risky, and naturally shifts to a known, legal brand like those from Delta’s African Distillers (Afdis) unit.”
Afdis reported spectacular growth in the quarter, with overall volume up 64% and its Ready-to-Drink segment soaring 92%. While festive season demand was a key driver, the reduction of illicit competition likely played a supporting role.
The crackdown also aligns with Delta’s own challenges from informal imports in the sparkling beverages segment, though here the competition is often from legally imported but cheaper regional products under trade agreements like COMESA.
A ZIMRA official, who declined to be named, confirmed that inter-agency efforts to curb illicit trade were “ongoing and intensifying,” linking it to broader fiscal needs. “Every litre of legally sold beer or spirit contributes to the fiscus through excise duty, VAT, and corporate tax. Curbing illicit trade is a matter of both public health and national revenue.”
For Delta, the benefits are clear, but the company remains cautious. The update also highlights “route to market disruptions” from new liquor licensing regulations, suggesting the regulatory environment is a mixed bag.
Nonetheless, in a quarter of strong performance, the decline of its shadow competitors is one factor Delta is quietly toasting.
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