Zimbabweans cut down on alcohol, tobacco consumption
HARARE - Prevailing economic hardships are hitting Zimbabweans on the recreational front where they are cutting consumption in such habits as smoking and taking alcohol.
Leading cigarette manufacturer British American Tobacco reported on Monday that in the six months to June 2019, total sales volumes declined by 20 percent versus the same period in 2018. "This was driven be shrinking consumer disposable incomes.
The premium brand, Dunhill, recorded a decline of 87 percent compared to the same period in prior year driven by the company's inability to import Dunhill as duties are required in foreign currency," said Chairman Lovemore Manatsa while presenting the company's unaudited financial results for the half year.
He said that the company's value for money brands Madison and Everest declined by 21 percent and the low value for money brand Ascot declined by two percent.
However, despite the drop in volumes revenue was 9.6 million Zimbabwe dollars (48 percent) higher than the same period in 2018, driven by price increases targeted at containing an increase in costs.
"This resulted in a gross profit increase of 8.9 million Zimbabwe dollars which is 61 percent up compared to the same period last year, driven by the positive impact from raw materials sources at lower prices," he said.
In the liquor sector, lager beer volume from Zimbabwe's biggest beverage manufacturer Delta Corporation declined by 57 percent for the first quarter to June 2019, compared to the same period in 2018, because imbibers' buying capacity has been impaired.
Delta said, however, that the traditional sorghum beer volume in the country grew by two percent versus the same quarter in 2018 and product supply had remained consistent despite difficulties in accessing imported packaging materials and services.
Some people who can no longer afford the higher beer prices are also resorting to cheaper spirits and illicit brews.