BEER guzzlers, who
do not usually feel the pinch of escalating prices of basics, must now dig deeper in their
pockets for a pint of ale after Delta
increased prices by over 50 percent on Valentine’s Day.
Although Delta,
which is citing runaway operational costs as well as shortages of foreign currency for inputs, was
in January forced to reduce the prices
following a government intervention, this time
around it seemingly
had very few options. The prices of beer
which were only two months ago reasonably low are now averaging $2 a pint while
a 750ml bottle is now being sold at $4 or more, a price that is far beyond the
reach of many.
Because of the
increases in the prices of beer, watering halls that are usually teeming with revellers on Fridays
and Saturday nights were deserted with only a few who have the wherewithal
being the last men standing. In a notice, Delta Beverages said the price
increases were “effective Thursday, February 14, 2019, with a 350ml pint of the
popular Castle Lager going up from a $1 to a recommended retail price of $1,50
while a 750ml bottle is now recommended to sell at $3.
However, a snap
survey by the Daily News on Sunday showed that the bottle stores and other
drinking spots are selling the wise waters at a higher price than the recommended
prices. The Zimbabwe Stock Exchange-listed company is the largest producer of
lager and traditional beer, Coca-Cola franchised sparkling and alternative
non-alcoholic beverages.
It has investments
in associate companies whose activities are in cordials and juice, wines and spirits.
Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu confirmed
the increases yesterday saying retailers have to pass on the prices to
consumers following the price hike by Delta.
“Delta has increased prices citing costs and as retailers
we have no choice but to pass it to the
consumer, but it is unfortunately coming at a time when the economy is facing many
challenges, obviously there is resistance on the market and we also hope that
the increase by such a big supplier will not have direct or indirect effects on
other suppliers. “The formal channel
sell at the recommended prices but then there are so many backyard bottle
stores and it is those that do not sell at the recommended retail price,” said
Mutashu.
Delta Corporate
Affairs executive Patricia Murambinda was not picking up her mobile phone
yesterday, however, last month the listed company issued a circular to its
customers announcing its decision to sell its products in the elusive US
dollars (USDs).
The company cited
the unavailability of foreign currency as the reason why it was taking that
decision which however saw a swift intervention by government. The resultant
saw Delta withdrawing its notice to sell exclusively in hard currency following
a tense meeting with vice President Constantino Chiwenga.
Beer supplies have been going down in recent months as
producers are struggling to get foreign currency to sustain their operations. As the prices of
beer continue to increase there are fears that people will turn to illicit drugs in a bid to get
drunk. Daily News
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