Tight like a Tiger

Tight like a Tiger
Tiger brands released their interim results for the past six months showing most divisions performing well. The Fishing and Exports divisions however, may be areas of concern for management as they did not perform as well as expected by analysts.
Also in the news, one of South Africa's large food exporters, Illovo Sugar looks set to sell a controlling interest in their business to Associated British Foods. AB Foods will gain access to low cost sugar production and by 2009 will benefit from duty free exports into Europe through its African divisions. Illovo will also benefit greatly through selling produce in Europe using AB Foods brands and infrastructure.
How many other South African food producers offer similarly attractive prospects to global producers? Time will tell.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Massmart announce R1.1 billion BEE transaction
Massmart on Tuesday announced a historic Black Economic Empowerment transaction designed to effectively empower the group's workforce. Under the terms of the transaction, shares equivalent to approximately 10% of Massmart's current issued share capital will be issued to three trusts representing approximately 14 500 members of Massmart's permanent general staff, previously disadvantaged managers and Non-Executive Directors in South Africa.
Read more.

AB Foods to buy majority Illovo sugar stake
Associated British Foods has agreed to buy 51 percent of Africa's biggest sugar producer, Illovo, for 317 million pounds in cash, as it looks to meet the challenge of European sugar reforms. Illovo will remain listed on the Johannesburg Stock Exchange, and the acquisition of 51 percent of its shares will be through a scheme of arrangement, requiring South African regulatory and court approval.
Read more

GEM Report: Can BEE catalyse entrepreneurship in South Africa?
Black economic empowerment legislation could potentially have a positive effect on stimulating entrepreneurial activity in South Africa - and with the country's level of early stage business activity measured to be at a relatively low level in comparison with other developing nations around the world, such an effect could not come at a better time.
Read more.

Tiger show 25% increase in headline earnings a share
Tiger Brands on Wednesday reported a 25 % rise in headline earnings a share to R5.26 for the six months to March. It was buoyed by the performance of its brands such as Koo baked beans, All Gold tomato sauce and Black Cat peanut butter, and consumer healthcare operations.
Read more.

ACNielsen Euro Price Barometer
ACNielson provide some useful insight for travellers to know how much their popular daily essentials will cost them when they get to their destination. The twice-yearly ACNielsen Euro Price Barometer measures the cost of popular international grocery products across 16 countries in Europe.
Read more.

Time renew your AMASA Membership
The Advertising Media Association of South Africa (AMASA) is calling on all members to renew their annual membership, and for potential members to download membership forms. AMASA associates benefit from a host of activities during the year including monthly newsletters, free entry into monthly meetings, reduced rates at all workshops, preferential bookings and special rates for the annual event.
Read more.

GLOBAL NEWS

Tesco plans for US entry take shape
According to reports last week, Tesco has chosen Los Angeles in California and Phoenix in Arizona for its planned entrance into the US grocery market. Job advertisements in the US state that the company is "preparing to launch an unprecedented retail food business in the LA and Phoenix areas".
Read more.

Boots and Superdrug fall out over price claims in UK
In the UK, Boots and AS Watson owned Superdrug have fallen out in a dispute about price comparion claims. Superdrug had applied to the high court for an injunction and accused Boots of "malicious falsehood".
Read more.

FEATURED BRAND

Swartland Winery Swartland Winery prides itself in producing natural wines, without relying on harsh additives or production methods. The result is a softer, more natural wine. The ideally suited soils and moderate climate of the Swartland region is perfect for the cultivation of grapes of outstanding quality. Read more.

BRAND NEW

Mageu Number 1 now available in delicious Strawberry Due to popular demand, Mageu Number 1 is launching an additional flavour to their existing leading product range. Available in a 1 litre carton with resealable top as well as in a 500 ml carton, the new Strawberry flavoured Mageu Number 1 is set to be a winner! Read more.

Denny warms up with heat & serve soups for winter Denny has launched a range of good-as-homemade soups this winter to provide a welcome answer to South Africa's icy chill. Available in a choice of Cream of Chicken, Potato & Leek, Butternut, Cream of Tomato and Cream of Mushroom Soups, each classic creamy flavour is a firm favourite with the family and can be enjoyed as a quick meal or served as an accompaniment to a heavier dinner time spread. Read more.

BRAND ACTIVITY

Indulge in free chocolate from Canderel! Canderel has announced one of the largest chocolate taste sampling exercises ever to be conducted in Africa, taking place at Nelson Mandela Square in Sandton on Saturday 27 May from 10h00. Over 22,000 slabs of chocolate will be given away to members of the public on a first come, first serve basis. Read more.

100% Pear Pleasure comes in perfect pairs Following the launch of its latest variant towards the end of last year, Appletiser has planned a national Peartiser promotion to build on the success of the new variant. The "Perfect Pears" promotion will run from 17 July to 3 September and consumers will stand a chance to win items such as designer sunglasses, shoes, earrings, lingerie and jeans - all of which hold huge appeal for the modern fashion conscious woman. Read more.

Win a safari to Sabi-Sabi with Bioharmony Bioharmony, one of SA's leading natural health companies, will host FIVE lucky winners and their partners to four nights at one of the world's top private game reserves, Sabi-Sabi, where they'll be pampered in a spectacular natural setting. Read more.

Simba bring "Puff Parties" to kids countrywide Simba are hosting "Puff Parties" for kids around the country with a hive of activities on offer. There will be face-painting, singing, dancing, colouring in, cool Simba prizes to be won, games to play, loads of Simba Cheese Puffs to eat and Simba the Lion will be there! Read more.

WINE, BEER & SPIRITS

Zonnebloem releases prized 2004 Lauréat The flagship in the Zonnebloem red wine range, Zonnebloem Lauréat 2004, known internationally simply as a Cabernet Sauvignon/Merlot blend, has scooped a gold medal at the prestigious 2006 International Wine Challenge in London. Read more.

Fairview Goat gets Gold Fairview Wine and Cheese Estate last week continued adding to their trophy cabinet when they received 10 medals at the highly prestigious Decanter World Wine Awards. The 2004 Goat Roti from their Goats do Roam range was awarded a gold medal, one of only six to go to South African wines. Read more.

Distell show strong export growth in packaged wine
Contrary to the trend that has seen South Africa's bulk wine exports grow as producers seek to curtail supply chain costs in an increasingly competitive market, Distell has raised its packaged wine exports by 18% for the 12 months to March 2006.
Read more.

Join in the Third Annual Wacky Wine Weekend
Fancy a fun-filled weekend in the Cape Winelands? Come and enjoy award-winning wines and warm hospitality in the Robertson Wine Valley. The 3rd annual Wacky Wine Weekend is taking place from 2 to 4 June 2006.
Read more.

International Retail Growth

Retail Analysts Planet Retail have provided us with a fascinating and informative insight into the 'Top 30 Grocery Retailers Worldwide'. Take the time to read the article - the numbers are quite astounding when comparing them to the turnovers of South African retailers.

Speaking of retailers, they are an easy target for unions, especially when there is a retail boom in progress. There businesses are dependant on a number union members, which makes them very vulnerable to mass action. I certainly hope for the good of the industry that this year's wage negotiations are not as disruptive as last year's.

On a last, somewhat unrelated note, an interesting, and somewhat frightening fact presented by Eighty20 this week is a graphic illustration of the impact of AIDS: In 1997, most adults died between the ages of 65 and 79. In 2002, most adults died between the ages of 25 and 39.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Wal-Mart number global number 1 again!
Wal-mart emerged the clear winner once again in Planet Retail's recently published 'Top 30 Grocery Retailers Worldwide'. With sales of USD339 billion and a worldwide market share that almost equals the rest of the Top 5 combined, it's easy to see why they're still at number 1!
Read more.

Pick 'n Pay nationwide go-slow ended
Employees of one of South Africa's biggest supermarket group, Pick 'n Pay, last week embarked on a nationwide go-slow campaign, apparently in support of their wage demands. It ended on Thursday however following the successful granting of a court interdict against the workers concerned.
Read more.

Spar report excellent earnings, CEO resigns
On Wednesday last week, retail and convenience store franchise group, Spar, reported very strong growth for the six months to March with net profits climbing 16.5% to R206.4m and revenue soaring by an impressive 22.6% to R8.23bn. It is thus quite interesting that Peter Hughes, Spar's CEO, is planning to retire at the end of the year after 17 year's service.
Read more.

Nature's Source factory now HACCP compliant
Exceptional food safety standards are one of the most important objectives at the Nature's Source Muesli factory in Durban, so it was cause for much celebration when the staff's commitment to excellence was recognised by the SABS.
Read more.

When the going gets tough…
When the cost of living is rising faster than salaries can keep pace with, the world's consumers are fairly unanimous about what they'd cut back on to avoid blowing their budget. Out-of-home entertainment, spending on new clothes and upgrading technology are the top three belt-tightening measures of consumers worldwide, according to an online survey by ACNielsen.
Read more.

GLOBAL NEWS

Carrefour analyses Iranian market for entry
French international Carrefour is considering entering the Iranian market, the company's franchise partner in the region has confirmed to Retail News Middle East.
Read more.

Foodstuffs launches new liquor banner
In New Zealand, Foodstuffs (South Island) has announced that it is launching a new liquor store chain. The chain, to trade under the Henry's banner, will be under 400 square metres per store and will stock beer, wines and spirits.
Read more.

FEATURED BRAND

Stellar Winery Stellar Winery is situated 275 km north of Cape Town on the road to Namibia. The winery makes use of a semi-arid climate, unrivalled refrigeration capacity and extensive in-house engineering skills to produce modern, Fairtrade organic wines. Read more.

BRAND NEW

Staffords Lemon Curd Staffords has added delicious Lemon Curd to its range, and it's completely free of tartrazine! Staffords Lemon Curd is now available in leading retail outlets throughout South Africa. Read more.

Simonsberg launch 3 zesty new flavours Simonsberg is proud to introduce three piquant new cream cheeses - Lemon Cheesecake, Sweet Thai Chilli and Mediterranean - adding a contemporary twist to the spectrum of flavours in their best selling range. Read more.

Packaging makeover for Frisco coffee National Brands Limited is bringing new excitement to the coffee aisle with their revitalised packaging of popular proudly South African brands, Frisco and Koffiehuis. The new packaging, designed by Jansen Graphics, comes in a variety of pack sizes to suit any occasion. Read more.

BRAND ACTIVITY

Win a one year soccer training course with Mageu Number 1! As of the middle of April, Mageu Number One is running a fantastic soccer promotion where consumers stand a change of winning one of 10 one year Soccer Coaching and Administration Training Courses, or one of a 1000 branded soccer balls. The Soccer Coaching courses are from Boston City Campus and will be taken either as a full time or part time course at their Gauteng Campus or as a correspondence course nationally. Entry forms will be in Daily Sun and Sowetan newspaper. Competition closes end of May. Read more.

Moving money for the masses

There a quite a number of interesting news bits this week. Shoprite has announced an innovative banking facility that enables their customers to transfer funds through its network of stores - a fantastic facility if you consider the value it will add to Shoprite's customer base, many of whom don't have bank accounts and work away from home.

David Kneale's back-to-basics approach has made a positive impact at the New Clicks group, with most divisions delivering a strong performance over the past six months.

In a report out of the US , Wal-Mart is re-designing their advertising strategy. The marketing spend under review is estimated to be USD578 million so there are bound to be some marketing/media executives on tender hooks. It will be interesting to see what they come up with and how it will impact on much talked about Wal-Mart company image overhaul.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Shoprite to compete with banks with cheaper money transfer
Last week Shoprite announced that it would offer money transfer services to enable its shoppers to send funds from one supermarket to another across the country. This could take some of the major banks' core business because of the lower service charges the retailer is offering.
Read more.

Clicks performance improves
On Thursday New Clicks reported an 11.6% rise in net profits to R138.7m off a 14.3% hike in revenue up to R5.2bn. Most divisions reported significantly better results in the six months to February.
Read more.

Consumers cheated with bread
Bakeries in especially the Western Cape, Gauteng and Free State have been issued with warnings after a reported 23% of bread tested was found to be "too light".
Read more.

Less than 2 weeks left to nominate Woman of the Year
South Africans intending to pay tribute to the nation's outstanding women achievers have less than two weeks left in which to make their nominations for this year's prestigious Shoprite Checkers / SABC 2 Woman of the Year Award. Nominations should reach the organisers by Friday, 12 May 2006.
Read more.

SA Business and Revenue Service Work Together to Globalise Trade Standards
The South African Revenue Service (SARS), in collaboration with the Consumer Goods Council of South Africa (CGCSA) is working with the World Customs Organisation (WCO) to establish international minimum standards.
Read more.

GEM Report: Education and the entrepreneur
With the release of the 2005 Global Entrepreneurship Monitor, the role that education plays in aiding entrepreneurial initiatives has come under the spotlight. With the findings indicating that the level of entrepreneurship in SA has decreased since the previous year's study.
Read more.

GLOBAL NEWS
Coke recalled in Japan
The Japan subsidiary of the Coca-Cola Co of the United States said on Monday last week that it will recall about 830 000 bottles of soft drinks sold in Japan after confirming that a small amount of iron powder had been contained in some drinks.
Read more.

Wal-Mart reviews media accounts
According to reports in the US advertising press, Wal-Mart Stores is reviewing its advertising strategy as part of a larger overhaul of the company's marketing image. The business under review is worth about USD578 million - www.planetretail.net

Talking shopper trends

What is the greatest threat to an established brand? It is seldom that a competitor purely outperforms the established brand with a similar product to win over the hearts of consumers. The more likely scenario is that consumers will change their habits over time and the brand will fail to adapt to the change. Priority number one for any brand manager is to know what your consumers are thinking and doing. The same can be said for retailer - there is no looming threat to their existence, but they have to be in tune and know exactly what shoppers want.
This week we carry an insight into shopper trends by AC Nielsen, and the synopsis we carry is well worth a read. However, I would strongly recommend that you contact Ailsa Birch on ailsabi@acnielsen.co.za to purchase a full study.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

Shopper Trends 2005
"As choices of stores, products and brands grow it becomes increasingly difficult for manufacturers and retailers to rely on past successes in attracting consumers". This was part of the findings of ACNielsen's latest study, entitled Shopper Trends 2005.
Read more.

Shoprite remains tight-lipped
The cautionary announcement from Shoprite last week that it was involved in some unspecified negotiations is still taxing the mind of the market. The leading theory is that it could relate to a management buyout led by Christo Wiese and Whitey Basson backed by a private equity group. But why now, asks Llewellyn Jones from Finance 24.
Read more.

NBL is Proudly South African!
National Brands Limited (NBL) has been named 'Company of the Year' at the Proudly South African Homegrown Awards, winning the title for the second consecutive year.
The Company of the Year Award singles out a leading business that personifies the Proudly South African ethos and implements its principles in terms of employment creation, quality products and local content promotion.
Read more.

SA's SABMiller slowing down
Though SABMiller's SA operation remains the "heart and soul" of the company, its importance in terms of volume and profit is waning. This emerged from SABMiller's trading update for the year to end March 2006, when the group recorded good organic lager volume growth of 5% and group financial performance in line with management's expectations.
Read more.

Pioneering research tool set to change SA marketing landscape
The Wildfire Index, a groundbreaking South African research project that explores the power of networks and the impact of word-of-mouth marketing, has come up with fascinating findings about major local brands and has generated a revolutionary new marketing tool. The tool represents a world first and will be launched during nationwide presentations in early May where the details of the supporting research will also be discussed.
Read more.

GLOBAL NEWS

Dissapointing results for P 'n P Oz, despite SA's good performance
Like all other grocery retailers, supermarket chain Pick 'n Pay felt the benefit of a booming economy and high consumer confidence in the year to February. But perhaps the more important story is the performance of the group's Australian business, Franklins, which recorded a mammoth R92m trading loss for the year, although the loss in the second half of the year was substantially less than the first half.
Read more.

Wal-Mart vows to keep growing despite opposition
According to Planet Retail, the chief executive of Wal-Mart Stores, Lee Scott, on Thursday said that the retailer will not bow to opponents who say the company is too large, and that it will continue to grow as long as customers keep coming to its stores. Mr Scott said the retailer was in the midst of a "transformation" as it tries to reach customers who shop its stores for food but look elsewhere for fashionable clothing or housewares.

Changes ahead?

Changes ahead?

There is lots of corporate activity to read about this week - 'inactivity' however in the case of the Competition Tribunal declining the purchase of 84% of Moresport shares by Massmart. The verdict surprised me but I am convinced that Massmart will oppose the decision.

There are rumblings in the Shoprite camp, with terms like "De-listing" and "BEE" being bandied about. If a delisting is on the cards then it’s probably going to be a fairly expensive one with the share price having risen by 28% in the last year. Christo Wiese masterminded the "favourable" Pepcor delisting - perhaps he has a similar vision for Shoprite. If not, perhaps we will have an empowered retailer in the near future.

Craig Ballantyne
craig@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
editor@fastmoving.co.za

NEWSBYTES

How does BEE impact competitiveness?
Broad based BEE legislation has had a significant effect on corporate South Africa since its 2003 promulgation. Hundreds of deals, some valued in the billions of Rands have been struck in the intervening years, and BEE compliance has become a set standard for business in this country. However, just what effect has this relatively new condition for business had on small to medium sized enterprises (SMEs) in South Africa?
Read more.

A first for retail investors
For the first time, South Africa retail investors will be able to invest directly - and at a low cost - into JSE-listed shares without having to buy unit trusts, share schemes or other forms of collective investments.
Read more.

Shoprite shares jump 8%
Shoprite's shares shot up 7.95% to an all-time high of R23.75 on Wednesday after unspecified talks within the company. Although there were no official announcements as to the nature of the talks, it has been suggested that the company may either be putting together a BEE deal, or considering delisting the company.
Read more.

Massmart and Moresport merger declined
The Competition Tribunal on Monday last week declined the merger between Massmart and Moresport where Massmart attempted to purchase 84% of the shares in Moresport from Nedbank. Moresport operates Sportsmans Warehouse, Outdoor Warehouse and Sport Shoe World.
Read more.

New team for Clicks board
The New Clicks Holdings board has appointed chief executive David Kneale, chief financial officer Keith Warburton and Clicks stores managing director Michael Harvey as executive directors. This formalised the appointment of the health and beauty retailer's new three-person executive team.
Read more.