The operating environment remained challenging across all three markets. In Zimbabwe, key issues that arose include policies that disadvantaged modern trade. The sugar tax, introduced at the beginning of 2024, necessitated price increases, impacting overall volumes. Road infrastructure contributed to lengthened delivery turnaround time as well as frequency in vehicle maintenance needs. In South Africa, utilities remained relatively reliable, whilst on the other hand, the Rand responded positively to the Government of National Unity. In Zambia, power supply was severely constrained whilst the Kwacha currency battled depreciation. Consumer demand in the local market was weak on account of reduced agricultural input. Lager volumes were up 8% y/y to 2.66mn hectolitres, attributable to an improved variety of products and competitive pricing. The Sorghum Beer category faced headwinds-namely changes in route to market, new competition as well as constrained raw material inputs on account of the drought. Aggregate volumes for Sorghum Beer where down 7%, impacted by the cessation of regional exports. Corrected for exports, Zimbabwe Sorghum Beer volumes were up 1%.
