Innscor takes on Delta's Chibuku with Nyathi

Zim Now Writer

Food giant Innscor has entered the lucrative traditional beer brewing market dominated by Delta’s Chibuku brand.

Innscor recently announced that its Buffalo Brewing Company will launch its Nyathi beer in early 2023.

Innscor will be spending US$56 million on new projects but has not specified how much of that will be poured into Buffalo.

“US$56mn in additional investment into capacity has been planned for FY23 with the announced launch of the Sorghum beer line from Buffalo Brewing company going into deepening product offering,” IH Securities revealed.

Nyathi beer packaging is already ongoing at ProBottlers in Harare.

Buffalo’s brewery is sited in Stapleford, Harare in a repurposed factory shell.

Delta which controls 86% of the traditional beer market and 95% of lager sales has indicated that the market has room for growth by investing in increased capacity:

“Chibuku Super is constrained by the limited production capacity. A new Chibuku Super plant is being installed at Harare brewery for commissioning in early 2023,” Delta said in a statement.

Delta has stayed on top of the traditional beer game with product development like Chibuku Super and a banana flavoured variety as well as superb marketing. Other traditional beer brewers have failed to make a dent on Delta’s dominance.

But Innscor is much better equipped to take on Delta through sheer size, product development, marketing campaigns, mass market distribution network, footprint capacity and other key aspects.

But perhaps most importantly, Innscor is able to compete with Delta in the contract farming arena.

The diversified offering will not only be good for the consumer, farmers and related services like transport stand to also benefit from the competition between the two giants.