Price cuts affect beer production

ZIMBABWE has been hit by a shortage of both clear and opaque beer amid reports that the country’s sole beer brewer, Delta Beverages has scaled down all operations in protest against the low price of beer which the company was forced to sell the commodity by the National Pricing and Income Commission (NPIC) during the run up the just ended Presidential run-off.

A survey carried out by the Zimbabwe Guardian revealed that most beer outlets have run out of beer and the few outlets with stock were selling the beer at exorbitant prices.

The bottle store (off license) price of a pint of beer is Z$2 billion while that of a quart is selling at Z$5 billion.

But as the Zimbabwe Guardian discovered yesterday a pint of beer is selling at Z$20 billion and a quart is going for Z$40 billion in the few beer outlets still selling the commodity.

“We cannot get beer at our local Delta depot. I have been forced to increase the price of beer because the commodity is scarce. Otherwise if I continue to charge the old prices I will not be able to re-stock. We hear Delta wants to increase the price of beer, hence these shortages,” said a manager with a leading beer outlet in the city.

Some of the hotels visited by this reporter were selling beer at prices of as high as Z$50 billion per pint.

Although no official comment could be obtained from Delta officials in Bulawayo sources said the brewery has deliberately scaled operation.

“Towards the Presidential run-off election, we applied to the NPIC for our beer prices to be reviewed but the commission refused and since the current prices are no longer viable we can not continue incurring losses.

“However management and the commission are currently engaged in talks and the situation might improve very soon,” said an official who refused to be named.