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Expected decline in excise duty: Zimbabwean beer price to reduce by 10%

Expected decline in excise duty: Zimbabwean beer price to reduce by 10%

HARARE: Zimbabwe’s largest beverage manufacturer reduced the price of beer by up to 10 percent in a move attributed to an expected decline in excise duty and the anticipated fall in general cost of goods following the introduction of small denomination coins.

Delta Beverages said the price of a 375-mililitre bottle of lager beer would drop from US$1 each to US$0.90 from December 29 while consumers would be expected to fork out US$1.55 for a 750ml bottle, down from the previous US$1.65 each.

“We are confident that the new price points will be convenient to our customers and consumers who will now have the opportunity to use the recently announced new bond coins from the Reserve Bank of Zimbabwe,” the head of the company’s lager beer business unit Munya Nyandoroh said in a statement.

The central bank introduced one, five, 10 and 25-cent “bond coins” on December 18 following a public outcry over challenges with getting change from retailers who were forced to price their products in multiples of US$1 or offer sweets as change.

Central bank chief John Mangudya said the availability of the small denomination coins was expected to result in a reduction in general prices.

Finance Minister Patrick Chinamasa announced in November that excise duty on alcoholic beverages would be slashed from 45 to 40 percent with effect from January 1.