Source: Record demand, major investments: Beverage giants signal Zim’s industrial revival – herald
Sunday Mail Reporter
ZIMBABWE’S two biggest beverage producers — Delta Corporation and Varun Beverages — are enjoying some of their strongest growth in years, buoyed by improved economic stability, a firmer exchange rate and Government reforms aimed at rebuilding local industry.
Their simultaneous expansion, increased production capacity and record-breaking sales volumes are being viewed as a signal that Zimbabwe’s wider manufacturing sector may be emerging from years of decline.
The developments come as the Government continues to implement ease-of-doing-business reforms, with renewed focus on attracting investment, improving capacity utilisation and creating a predictable operating environment.
Industry and Commerce Minister Mangaliso Ndlovu said these conditions are now enabling Zimbabwe’s most visible consumer brands to thrive — an indicator of rising disposable incomes and strengthening domestic demand.
Last week, Minister Ndlovu led a delegation on a tour of Varun Beverages and Delta Beverages in Harare, where both companies showcased new investments, expanded operations and plans to scale up production.
From soft drinks to regional beer hub
Varun Beverages Zimbabwe — the local unit of India’s Varun Beverages Limited — has grown into one of the country’s most dynamic manufacturers since entering the market in 2018.
The company initially entered Zimbabwe under a PepsiCo franchise agreement, establishing state-of-the-art production lines for Pepsi, Mirinda, Mountain Dew and bottled water, and quickly rising to challenge long-established competitors.
By 2024, Varun had invested more than US$150 million into local operations and established 11 production units across various beverage lines.
Last year alone, the company completed a US$20 million expansion that added new carbonated drinks and water lines at its Harare plant.
In October, Varun signed a landmark sales and distribution agreement with global beer giant Carlsberg, positioning Zimbabwe as the launchpad for the African market.
Under the agreement, Zimbabwe will spearhead distribution before Varun moves to phase two — establishing local brewing operations.
The firm’s chief executive officer, Mr Vijay Bahl, said the rapid expansion reflects strong consumer uptake and confidence in the local market.
“We are happy that consumers in Zimbabwe have embraced our products. That demand has led to continuous expansion,” he said.
“We are paying our taxes in time, and Zimra (Zimbabwe Revenue Authority) has acknowledged our compliance.”
He said the company had acquired land for additional premises that will be fully functional around 2027 or 2028.
A new snack factory is already nearing completion and is expected to open in January next year under a memorandum of understanding signed with the Zimbabwe Investment and Development Agency (ZIDA) to broaden Varun’s footprint in the snacks and juice segments.
This expansion supports the Government’s import substitution strategy and is expected to strengthen local value chains, benefitting farmers who supply maize, sorghum and fruit for processing.
Record demand, stronger consumer spending
Delta Corporation, Zimbabwe’s largest beverage manufacturer and one of the biggest taxpayers in the country, says it is also experiencing unprecedented demand across its product lines.
Minister Ndlovu, after touring Delta’s Harare brewery, said the company’s growth mirrors improving economic conditions.
“In the last six to seven years, under the Second Republic, this sector has grown remarkably — almost five-fold in terms of consumption,” he said.
Each of the last four years, Minister Ndlovu said, has been record-breaking for Delta in terms of demand and output.
“And 2025 has hit the ceiling once again,” he added.
“We look forward to 2026, which we think will also be a good year.”
He attributed this boom partly to rising disposable incomes among farmers, who benefitted from good commodity prices, improved market access and higher agricultural output under the Government’s rural industrialisation and climate-proof agriculture programmes.
Increased rural incomes have translated into higher national spending on beverages and other consumer goods.
“This attests to a growing economy, where you have your ordinary farmers having more disposable incomes, and these are fitting into the greater part of the economy, and we are seeing the same trend with Varun, who are also very optimistic about 2026.” (See also Page B1) Delta chief executive officer Mr Alex Makamure said the company’s strong performance had also contributed significantly to Government revenues.
“At the last tracking, we were contributing between US$15 million and US$20 million per month in excise, VAT (value-added tax) and the sugar tax,” he said.
“These taxes allow Government to run its operations. With continued economic stability — especially the firm exchange rate and lower inflation — we can plan ahead with more certainty.” The sugar tax, introduced in 2024, is levied on sweetened beverages to discourage high sugar consumption while generating revenue for the health sector.
Its contribution has become a significant portion of Delta’s tax output.
A stabilised exchange rate — achieved through tight monetary controls, improved forex availability and increased confidence in the Zimbabwe Gold (ZiG) currency — has also lowered operational costs, reduced pricing distortions and made long-term planning possible. Mr Makamure said such stability must be preserved to support ongoing investments.
“We believe that if Government policies continue on this trajectory, we can do better. We have more investments planned for Bulawayo over the next year to meet growing demand,” he said.
The Bulawayo investment is expected to upgrade key production lines and expand output for the southern region.
Minister Ndlovu said the success of the beverage sector is reflective of a broader industrial revival.
“This is a very important sector in our economy, employing thousands and supplying every corner of the country,” he said.
“What we are seeing here is evidence of a growing economy.”
Industry experts say when major beverage producers expand, it often signals broader economic health because their supply chains span agriculture, packaging, transport, manufacturing, logistics and retail.
Both Varun and Delta rely heavily on local inputs — from sugar to packaging materials to agricultural produce — which is helping stimulate upstream industries and create thousands of indirect jobs.
A sector back on its feet
Zimbabwe’s beverages sector represents what consistent policy, economic stability and private sector investment can achieve.
Varun is building new factories, distributing global brands and exploring exports.
Delta continues to report record demand, expand production lines and channel millions into the fiscus.
The two rivals are demonstrating that local manufacturing — long battered by instability — is beginning to recover.
And, as both companies scale up operations, they may be paving the way for a new era of industrial resurgence across Zimbabwe.
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