Product distribution companies in Zimbabwe

Zimbabwe’s product distribution landscape is characterized by a blend of established companies and evolving market dynamics. The distribution network is comprehensive, serving large supermarket chains, specialized outlets in urban areas, and general dealer shops in rural regions. Local agents and distributors play a pivotal role, with their selection often based on existing infrastructure and the ability to provide after-sales service. The capacity to offer service contracts and spare parts is a key determinant of success in the Zimbabwean market.

Key Players in Zimbabwe’s Distribution Sector:

1. Brands Africa Zimbabwe: Recognized as a leading FMCG sales and distribution company, Brands Africa represents both international and local principals exclusively. They provide national distribution to all formal retail and wholesale chains, as well as the informal sector. With a sales and merchandising team of 105 people and a fleet of over 40 vehicles, they ensure efficient distribution coverage across the nation. Their warehouses in Harare and Bulawayo offer 10,200m² of ambient and temperature-controlled storage space.

2. BRD Distribution: Established in 2009, BRD Distribution is a Zimbabwean FMCG distribution company offering end-to-end services, including sales, merchandising, warehousing, distribution, and debtors administration. They have offices in Harare, Bulawayo, Gweru, and Masvingo, supported by a motivated sales team and an internal fleet to meet the principal’s sales and merchandising needs.

3. TM Supermarket: As a prominent supermarket chain in Zimbabwe, TM Supermarket has branches in all cities and most towns. Part of the Meikles group, with a 49% stake held by South Africa’s Pick n Pay Stores, they play a significant role in the retail distribution of various products across the country.

4. Dairibord Zimbabwe Ltd: Formerly the state Dairy Marketing Board, Dairibord is one of the largest food producers in southern Africa. With seven factories nationwide, they produce a range of dairy products and own Lyons Zimbabwe, a company manufacturing beverages, ice creams, cordials, condiments, sauces, and spreads.

5. Colcom Foods Limited: A long-established meat-processing company, Colcom is Zimbabwe’s leading pork producer. They supply wholesalers and retailers nationwide and operate their own and franchised outlets, including a training center known as “The Colcom Kitchen.”

6. African Distillers: Founded in 1944, African Distillers is one of the largest producers of alcoholic beverages in Zimbabwe, primarily focusing on distilled spirits and wines. They maintain supply depots in major cities and operate cash and carry outlet stores, ensuring widespread distribution of their products.

Market Dynamics:

The introduction of Zimbabwe’s gold-backed currency, ZiG, has led to volatility in traditional retail markets, causing residents to turn to informal night bazaars for more affordable goods. These unregulated markets operate in car parks and verandahs, avoiding expenses such as energy costs and taxes that formal retailers incur. The Retailers Association of Zimbabwe has warned of potential store closures due to the economic strain, highlighting the challenges faced by formal distribution channels.

In response to infrastructure challenges, Zimbabwe’s state-owned railway operator has opened its network to private players to boost freight volumes. Companies like South Africa’s Grindrod have deployed locomotives and wagons to augment the National Railways of Zimbabwe’s capacity, facilitating the efficient distribution of goods, especially minerals destined for export.

In summary, Zimbabwe’s distribution sector comprises a mix of established companies and emerging informal markets, each adapting to the country’s economic conditions and infrastructure developments.