Delta to Push Eagle Volumes

Source from:  herald.co.zw Business Reporter Tuesday, May 27, 2008 05/28/2008

DELTA Corporation says it will push Eagle volumes as part of an austerity programme for the current financial year. Chief executive Mr Joe Mtizwa said Eagle volumes were targeted to make up 20 percent of total larger volumes up from 11 percent last year. "We are offering a significant price discount to encourage customer migration to Eagle," Mr Mtizwa said, adding that there was enough sorghum cover to last through to March 2009. The group expects malt based lager volumes to decline 18 percent while Eagle would grow 58 percent. Total lager beer volumes would however be 10 percent down. Barley stock, used in lager brewing would last through to September this year. The group contracted close to 8 000 hectares for barley crop this year out of a target of 9 000 hectares. Barley malt tonnage is expected to be 36 percent lower. Mr Mtizwa said they had spent $200 trillion to date on winter crop inputs out of own cash flows. The group also requires 50 000 tonnes of maize to cover the full year for Chibuku but only have enough stock cover for just two months. The group did not expect volume recovery in the Beverages business given the tight supply chain for key inputs such as sugar, carbon dioxide, concentrates and coal. Sparkling beverages are expected to drop 18 percent. Packaging volumes Mr Mtizwa said are however expected to improve against prior year with a projected tonnage growth of 18 percent in plastic and 68 percent in glass. In the financial year to March, the group reported a 17 percent decline in lager volumes and 16 percent drop in sorghum. Sparkling soft drinks were down 8 percent where volumes were managed down mainly because of unscheduled plant shutdowns. Plastic and glass volumes were 36 percent and 48 percent lower because of raw material input constraints at MegaPak and poor utilities availability. Enditem