As Zimbabwe continues to struggle through an economic crisis, beer companies seem to have found the way to increase sales. CCTV America’s Farai Mwakutuya reports.

Zimbabwe’s largest listed company, Delta Corp., had previously seemed immune to the economic downturn. But now hard times are pushing drinkers to sober up.

Last month Delta slashed prices on some of its brands to stimulate consumption, a strategy that other fast-moving consumer goods producers have adopted to help endure a liquidity shortage that has pushed the economy into deflation. However, the question is how long can this price reduction strategy be sustainable?

“It can be sustained to a certain level because you also have to take into account the high cost of doing business in Zimbabwe. There are other factors, exogenous factors, that impede business profitability which they can’t control,” said economic analyst Prosper Chitambara.

Factors include the high cost of capital, labor, and utilities which have all conspired to whittle down productivity, and fuel company closures leaving the manufacturing sector operating at just 36 percent capacity. But it’s not all doom and gloom, particularly in the case of Delta Corp.

While the thirst for lager beers has diminished, drinkers in Zimbabwe have acquired a new taste for cheaper sorghum beer whose demand actually increased 14 percent in the first half of the year, helping shore up the company’s performance.