Zimbabwe’s Delta Corporation Hikes Beer Prices by 25%
Zimbabwe’s largest brewer, Delta Corporation said it has hiked beer prices by 25 per cent as a result of local costs. The move was announced days after the firm was forced to abandon its plan to accept only hard currency payments for its product.
Delta, which is 40 per cent-owned by Anheuser-Busch Inbev, has been hit by an acute shortage of U.S. dollars, affecting its capacity to import inputs like concentrates and remit dividends to foreign shareholders. The company said it was yet to make its decision on prices of soft drinks and other products.
A statement released by Delta said “the adjustment to the wholesale price is meant to cushion against the significant increases in local costs, confirmed by the official inflation statistics”.
After prices of goods spiked, annual inflation soared to a 10-year high of 31.01 per cent in November 2018.
Since November 2018, Zimbabwe has experienced a shortage of soft drinks and beer, with some shops limiting quantities, while some businesses tripled prices to take advantage of the shortages.
After the government intervened, Delta Corporation abandoned a plan to accept only hard currency payments to cope with a crippling shortage of U.S. dollars in the country.