Innscor Africa is advocating for policy reforms that strengthen the competitiveness of local beverage manufacturers, as imported products continue to gain ground in Zimbabwe’s retail market.
The diversified conglomerate says domestic producers remain under pressure from low-cost imported beverages, which have increasingly gained shelf space in both formal and informal trading channels.
The call for policy reform comes after the group’s beverage subsidiary, Probottlers, recorded a 13 percent decline in aggregate volumes in the nine months ended 31 March 2026.
Among the reforms being pursued, is the extension of the sugar content tax to imported beverages, a move industry players believe would create a more level operating environment for local manufacturers.
Probottlers, which produces the Bally House cordial range and Fizzi carbonated soft drinks, has been among local beverage companies affected by the sugar tax introduced by government at the start of 2024.
Authorities implemented a levy of US$0,001 per gram of sugar content on beverages, although the rate applicable to cordials was later reduced by half to US$0,0005 per gram following concerns raised by industry participants.
In a third-quarter trading update, Innscor company secretary Andrew Lorimer said discussions with policymakers were continuing in pursuit of reforms that would support the long-term viability of the local beverage industry.
“Ongoing dialogue continues with the authorities with the hope that appropriate policy refinements will be introduced that will result in the long-term sustainability of the local beverage manufacturing sector, and with the objective of seeing local beverage products dominating local shelves, rather than imported products, as is currently the case,” Lorimer said.
Imported beverages, many of which are produced at lower cost, continue to present stiff competition for local manufacturers across the country.
Despite these challenges, Probottlers is focusing on improving profitability through tighter cost controls, operational efficiencies and increased participation in higher-margin product categories.
The company has also continued to shift its product mix away from high-volume, lower-return segments toward products offering stronger earnings potential.
Management indicated that this strategic repositioning contributed, in part, to the decline in overall volumes recorded during the reporting period.
Performance across the portfolio was mixed. Bally House cordials posted a six percent increase in volumes, reflecting continued consumer demand, while Fizzi carbonated soft drinks experienced a 13 percent decline.
Lorimer said management remained focused on improving operational performance despite the difficult trading environment.
“The business continues to operate within a complex trading environment, with management maintaining a disciplined focus on operational efficiencies, recipe enhancements, cost containment initiatives, and the ongoing refinement of route-to-market strategies,” he said.
He added that the business was beginning to show signs of recovery despite ongoing headwinds.
“Whilst challenging trading conditions persist, the business is showing some encouraging signs of stabilisation and recovery,” Lorimer said.
Looking ahead, the group said it would continue driving volume growth across its beverage portfolio while maintaining disciplined pricing strategies designed to preserve affordability and sustain market relevance in an increasingly competitive environment.