29 June 2012

Zimbabwe: No Going Back On Beer Margins - Delta

DELTA Corporation says it has no apologies to make to wholesalers and retailers who have been crying foul over reduced margins as this was a business decision taken following a thorough review of the prevailing situation.

Addressing delegates to the Zimbabwe National Chamber of Commerce annual congress in Victoria Falls during a cocktail party Delta Corporation corporate affairs director Mr George Mutendadzamera said the position was taken after careful consideration of the operations under the current economic environment.

"I just felt I could share with you Delta's position regarding what has recently been in the Press regarding demands by wholesalers and retailers in relation to the issue of margins. This was purely a business decision we made and there is no use crying out and we have no apologies to make on that one. In this environment, we have to adapt to the prevailing conditions," said Mr Mutendadzamera.

Disgruntled wholesalers and retailers recently formed an association to articulate their concerns regarding Delta's recent decision to unilaterally slash the margins they make for selling Delta products.

The Beverages Wholesalers and Retailers Association has since been registered as a legal entity and a national executive is now in place. Mr Petros Isaac Kanjera is the inaugural president of the association.

The association is meant to enhance co-ordination of members' programmes and ensure the players speak with one voice nationwide.

Mr Mutendadzamera also highlighted the need to uphold good corporate governance ethics in all business practices as it was negatively affecting economic growth.

"We need to uphold good corporate governance. Don't steal from your business, for goodness sake. There is talk now of a US$100 billion economy and for us to achieve that we need to respect the people we are dealing with and ensure that they do not get disadvantaged.

"When we talk of building economies, there are things that have to be done properly. Let's do that, but again there is the scourge of corruption in our midst that has driven the concept of what do I need to pay to get something be it a passport or business licence.

"If we are heading towards a US$100 billion economy, we just need to go back to basics. Have a critical look at yourself and do those things that will bring glory to yourself as an individual. Will you be able to leave a legacy, a name that shows that you were conducting business in a professional manner?

"There are things we have to do to turn our success into growth and I believe this can be done," Mr Mutendadzamera said.

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