Soft Drinks Production Up 20%

Delta Corporation says that soft drinks production capacity has increased by about 20% since the commissioning of the $2 billion bottling plant in November last year.

The plant has a capacity to produce 42 000 bottles per hour.The group said the canning line at its Southerton plant has been modified through an investment of some $200 million to give it capability to can soft drinks which were previously imported from Namibia."Local canning of soft drinks fully commenced in December last year and we expect improved contributions from the plant," said corporate affairs executive, George Mutendadzamera. He said the biggest constraint faced by the soft drinks division was the unavailability of glass containers as a direct result of the collapse of the only clear furnace at Zimglass last year.

Mutendadzamera said more recently the major constraint in this business has been the shortage of sugar arising from the inability of the Zimbabwe Sugar Refineries to get timely deliveries of raw sugar and coal, both of which are a result of logistic problems facing the National Railways of Zimbabwe.

"The situation is set to improve as a result of initiatives that are currently underway," he said.

He, however, could not be drawn into shedding light into what initiatives the company had taken.

He said the lager division had performed exceptionally well for the year to date, adding that volumes were significantly ahead of budget, driven by the spectacular growth of the 750ml value pack which has gained "exceptional market acceptance".

Delta allayed fears of a beer shortage, saying that there was sufficient production capacity and raw materials to satisfy any increase in demand for beer.

"Although we will need to import a little bit of barley for our malt export requirements, sufficient crop has been brought in from last year's winter harvest to meet all our barley malt export requirements," Mutedzamera told businessdigest.

He said the company was on course with the thrust on operational efficiencies and overhead cost reduction. This effort is assisted by the implementation of the World Class Manufacturing Strategy (WCM) which Delta is implementing with the assistance of SAB Miller who are the world class leaders on such projects.

"It is our expectation that we will achieve significant improvements in operating efficiencies for the next two to three years as a result of this initiative," said the Delta executive.

He revealed that Delta's strategy to enter new markets has been launched and the company recently made entry into the Angolan market in partnership with Zimtrade.

If this model succeeds, the group hopes to roll it out to other significant markets.

Volumes in the Chibuku division are also ahead of forecast and budget driven by an upsurge in consumer demand, the company said. The supply of critical raw materials such as maize and sorghum has been stable through a combination of local supply and imports. Delta said significant contracts have been made by farmers for the 2002-2003 season for both maize and sorghum.

"Despite the bad weather pattern of the season to date, it is our expectation that the contract scheme will play a significant role in giving assurance of raw materials supply through to the next season," Mutendadzamera said.

He explained that this is particularly so because the contract scheme has been structured more in favour of sorghum which is drought resistant.

Delta said the maltings business continued to perform exceptionally well with malt exports significantly ahead of last year.

The company also revealed that the packaging business at Ruwa has performed ahead of expectations in both revenue and volume terms for the nine months to December.

Delta shares closed at $162 on Wednesday, a six percent gain on the week.

600450 Soft Drinks Production Up 20%

See more news about:

Others also read

Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.

Add new comment