CHEERS to that!

Beer and soft drink giant Delta Corporation has vowed to lead the recovery in Zimbabwe’s manufacturing sector – by boosting alcohol production.

The brewer, controlled by South Africa’s SABMiller Plc and Old Mutual Plc, says it will boost output almost fivefold by 2014 as Zimbabwe’s economy shows signs of recovery from a decade-long recession.

Delta aims to boost output to 10 million hectoliters (264.2 million gallons) by 2014, from 2.2 million hectoliters in the fiscal year through March, 2009, by investing $150 million to revamp underutilised equipment, it said in a copy of a presentation made at an Imara Holdings Ltd conference this week.

Revenue will grow to more than $1 billion, it said, without providing current figures.

Delta has a 90 percent share of Zimbabwe’s beer market and 85 percent of the soft-drinks market.

Zimbabwe’s economy is forecast to grow by four percent this year. Finance Minister Tendai Biti said Thursday that there was 1.1 percentage growth in the first half of the year after President Robert Mugabe formed a unity government with opposition rivals Morgan Tsvangirai and Arthur Mutambara in February. Tsvangirai is now Prime Minister and Mutambara his deputy.

Inflation has been curbed after the Zimbabwe dollar was abandoned in favour of other currencies including the United States dollar and the South African rand. Increased industrial activity is predicted as foreign investors look for opportunities in the country.

The IMF said this week that “a nascent economic recovery appears to be underway” in Zimbabwe.

“A more liberal economic environment, price stability, a deepening in financial intermediation and increased access to foreign credit lines underpinned a pickup in economic activity,” the Fund said in a statement on Thursday.

“Delta will lead the recovery of the manufacturing sector in Zimbabwe,” the company said in an e-mailed copy of the presentation.

Delta is 36 percent owned by SABMiller and 28 percent held by Old Mutual, both of which are listed on the London Stock Exchange.

It currently has installed capacity of 10 million hectoliters, with 1.5 million hectoliters of that dedicated to lager, 1.7 million hectoliters allocated to soft drinks and the rest to sorghum beer.

The company produces lager under brands including Eagle, Castle, Pilsner, Lion, Bohlingers, Zambezi and Chibuku opaque beer.

Monthly lager and sorghum beer sales more than doubled between November and May, Delta’s presentation showed.

Delta, which has a market value of $411 million, said it plans to sell its stake in Ariston Holdings Ltd., a tableware and agriculture company.

The investment holding company also wants to dispose of its starch and glucose businesses and “dilute” its stake in its packaging unit.