Delta allays job fears, new beers coming
LISTED beverages manufacturer Delta Corporation will not be cutting jobs in Zimbabwe despite the recent announcement by its new parent, Belgium-based AB InBev, that it will be shedding 5 500 jobs globally.
Barely 10 weeks after shareholder approval of what some tout as the third-largest merger in corporate history, AB InBev announced that the job cuts were supposed to save costs incurred in stitching up the deal.
In South Africa, more than 1 000 management employees are set to be retrenched.
Delta Corporation company secretary Mr Alex Makamure said last week their strategies and operational programmes were driven by the board as the local unit was only an associate of AB InBev.
He, however, noted that the shareholder could contribute to the group’s strategies.
“As far as we can read from the AB InBev statements, the anticipated global job losses referred to did not cover associate entities. As Delta we are not privy to the circumstances giving rise to the retrenchments in South Africa that you allude to.
“Any job losses in Zimbabwe will be driven by the unavoidable review of our business given the difficult trading environment and not as a consequence of the changes at shareholder level,” said Mr Makamure in response to enquiries by The Sunday Mail Business.
SABMiller shareholders backed the brewer’s US$ 104,2 billion takeover by rival AB InBev late September 2016. The deal was effective October 10.
Since it was a shareholder transaction, it is suggested that the SABMiller and AB InBev merger will have limited impact on the operations of both Delta and Schweppes Zimbabwe.
But The Coca-Cola Company ( TCCC) has given notice to terminate its bottler’s agreement with Schweppes after the merger.
AB InBev, which is a major bottler of PepsiCo Inc, has an indirect interest in Schweppes Zimbabwe through a 49 percent stake that is held by Delta.
TCCC and AB InBev have since reached an agreement in principle for the former to acquire AB InBev’s interest in bottling operations in markets such as Botswana and Zimbabwe, and for subsequent re-franchising to its preferred partners.
The Delta board has engaged both AB InBev and TCCC to resolve the issues.
Also, by virtue of being an associate, Delta is evaluating the range on international beer brands available from AB InBev, which has over 200 beer volumes such as Beck’s, Hoegaarden and Leffe under its portfolio.
“AB InBev has exciting flagship beer brands such as Corona, Budweiser, Stella Artois and Beck’s which we believe will appeal to the Zimbabwe consumers.
“We do not have a timeframe yet (of starting to produce them). There are very elaborate processes of establishing supply points (that is, where will the beer be brewed), registering trademarks and franchise agreements,” added Mr Makamure.
In the short-term, Delta has discontinued international brands such as Peroni and Miller Genuine Draft, which are no longer part of the group.