Your analysis misses a key point that Varun is riding on massive tax exemptions, so the investment is funded by Zimbabweans, they got free forex from RBZ, the allocations are on public record. That’s what they have asked for to enter the beer market, fact. That will be vigorously opposed. They are faltering in CSD without the forex benefits and a dollarised economy.
What in your view has kept Dangote on the terraces with regards to Zim investment? Has the conditions now changed to make him finally take a move?
I believe Varun move into beer market will eat into Delta's market share and margins. It would be good to see how its entry into soft drinks market did to Delta's margins since their entry.
Your analysis misses a key point that Varun is riding on massive tax exemptions, so the investment is funded by Zimbabweans, they got free forex from RBZ, the allocations are on public record. That’s what they have asked for to enter the beer market, fact. That will be vigorously opposed. They are faltering in CSD without the forex benefits and a dollarised economy.
Thanks Alex, this is a good point and fair critique. Will look into that and publish a follow-up.
What in your view has kept Dangote on the terraces with regards to Zim investment? Has the conditions now changed to make him finally take a move?
I believe Varun move into beer market will eat into Delta's market share and margins. It would be good to see how its entry into soft drinks market did to Delta's margins since their entry.
Superb work, Tinashe!