Published: 28 July 2017

THE closure of Delta Corporation's Victoria Falls depot this week is likely to open floodgates for cheap imported beverages and negatively affect local dealers in the resort town, the local business community has said.

The Zimbabwe Stock Exchange listed company closed the branch on Tuesday to remain with 23 outlets down from 35 in 2014.

Observers say Delta succumbed to an influx of cheap imports from Namibia and Zambia although management insisted the decision was part of a rationalisation exercise.

Some dealers have over the months been buying cheap imports such as Castle Lite and Windhoek Lager from unregistered suppliers who smuggle loads of beverages from Namibia. Soft drinks are also brought by hawkers from Zambia who supply tuck shops around Victoria Falls.

Delta corporate affairs director, Mr Alex Makamure, told The Chronicle in an emailed response that they will now distribute their products from Hwange.

"We have plans to convert some of the sites to purely distribution depots with no customer collection facility. Some of the depots such as the one in Victoria Falls will close with the direct store deliveries being staged from Hwange," he said.

Although Mr Makamure chose to say the move is part of the company's rationalisation project, he acknowledged the presence of competition from parallel dealers.

"We periodically review our footprint in response to improvements in our logistics, emergence of reliable third party partners and the prevailing volume at each centre. This review will result in either closing or opening of certain depots, which process has culminated in the reduction in the depots run by the company from 35 in 2014 to the current 23 centres."

Mr Makamure said wholesalers in Victoria Falls have capacity to service their own collection customers. While he said he does not anticipate any discernible market gaps arising from the depot rationalisation, beverages dealers said they felt the departure of Delta would affect supplies in the tourism industry and eventually cause a price increase in beer and other beverages.

Speaking on behalf of outlets, Mr Ntuthuko Moyo, who runs Chinotimba Old Bar, said the development will promote a black market.

"We are formal businesses, which is why we have liquor licences and Delta was there to push volumes to us as a stockist. What they have done indirectly is to destroy the formal sector and promote backyard dealers who don't abide by ethics hence we will see underage people accessing alcohol," he said.

Added Mr Moyo: "This is a cause for concern to us traders and in the long run it will affect us as we will lose customers to those who sell on the streets."

Mr Moyo said traders would be forced to increase prices of beer to recoup transport costs since private suppliers will not be delivering to them the way Delta used to do.

There are fears that dozens of workers who were employed at the Victoria Falls depot will lose their jobs although the company management insisted they will be absorbed into other depots. 
- zimpapers

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