HOUSEHOLD DEBT

SHOPTALK

South African Household debt as a percentage of income has risen from 49.1% in 2002, to 65.5% at the end of 2005. As worrying as this is, it is still well below the many first word countries that have debt/income ratios of over 100%. It is the sharp increase that draws attention, and given the high (10.9%) growth in retail sales for March, there is little to indicate a slowdown.

Below you will read that credit cards have seen a 40% year-on-year growth in the past three years, and banks have little intention of slowing this growth given the aggressive marketing campaigns they have embarked on in recent times. The reserve bank has a difficult task when maintaining a balance between raising interest rates to cool consumer debt and keeping interest rates low to stimulate the manufacturing sector - a job they have done well to date however.

I believe that lenders, especially credit orientated retailers, need to be more vigilant when issuing credit, as strong performances will soon be forgotten should debt become unsustainable due to a rise in interest rates.

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

Pick 'n Pay picks Fruit & Veg
On Tuesday last week, Pick 'n Pay announced the finalisation of an agreement to purchase Fruit & Veg City. Fruit & Veg operates 86 corporate and franchise stores nationwide. Analysts have speculated that the purchase may well help the giant retailer regain lost market share in the fruit and vegetable sector.
Read more.

Premier Foods board in battle for driving seat
The executive chairman of black-empowered company Premier Foods on Wednesday reportedly accused unnamed members of his board of orchestrating personal attacks on him to grab the corporation that had become profitable for the first time after five years.
Read more.

Rainbow focuses on meeting consumer needs
Since the appointment of Miles Dally as CEO three years ago, Rainbow Chickens has undergone a restructuring that has refocused the organisation from a commodity-producing business into a consumer-orientated one. According to Dally, a consumer business is about people and brands - areas where he has devoted much of his energy by building brands and turning Rainbow into an organisation that people want to work for.
Read more.

SA up to their necks in Credit Card bills
According to reports in the latest Finweek, South Africans owe nearly R34bn on their credit cards with year-on-year growth running at levels greater than 40%. While the growth numbers are staggering, it should hardly be surprising, considering the aggressive growth strategies unveiled by the big four banks over the past two years.
Read more.

Brand magazines giving retailers the edge
According to Retail publishing specialist Alison Thomas, almost every supermarket in the UK has a free, specialist brand publication: they are without exception phenomenally successful - and empower the retailer as a media owner. The South African retail environment may not be as diversified as its UK counterpart but shoppers are just as susceptible to being won over by the store that offers more.
Read more.

GLOBAL NEWS

Wal-Mart sued in counterfeit case
Italian fashion group Fendi has sued Wal-Mart Stores in a US federal court, accusing the retailer of selling counterfeit handbags and passing them off as genuine at its Sam's Club warehouse stores. Wal-Mart has so far declined to comment on the case.

Carrefour to launch non-food online site
On June 19th, Carrefour will launch its new non-food online site www.boostore.com. The site will offer five groups of products: cultural, sport and leisure products but also flowers and household goods and in particular IT and multimedia products, all of them at very competitive prices (more than 200,000 SKu's will be offered).
(Planet Retail)

Tesco report rise in first quarter sales
Tesco has this reported that total group first quarter sales rose 10.4%. UK same store sales excluding fuel grew by 4.5% for the 13 weeks ended May 27th.
Read more.

FEATURED BRAND

Horlicks Horlicks is a delicious malt-based drink that can be enjoyed hot or cold. It consists of a unique blend of nourishing ingredients, which are scientifically formulated to provide vitamins, calcium and protein. Read more.

BRAND NEW

NEW! Introducing Bakers Romany Creams Mintier Choc The Bakersman is once again bringing excitement to the biscuit aisle with the introduction of Bakers Romany Creams Mintier Choc. Covered in crispy mint pieces, Bakers Romany Creams Mintier Choc has a stronger mint flavour, which provides a perfect accompaniment to the chocolate. Read more.

NEW! Discover the secret of perfect pasta with Denny Denny has launched a robust and authentic range of pasta sauces that take the Italian sentiment of 'stylishly simple' and 'uncomplicated' to heart. The new range is undeniably convenient to the consumer who is looking for a delicious meal that takes only a 'momento' to prepare. Read more.

NEW! The first energy cola from USN Energy Cola from USN is a unique, great tasting, low calorie carbonated drink, fortified with vitamins and metabolic enhancers to increase mental and physical energy. Experience a cola energy rush like never before! Read more.

NEW! Use the brush you can flush from Addis What could be easier? The all-in-one, Addis Flush Away Toilet Brush cleans and deodorises effectively and hygienically. Everything is in the brush - no more wet toilet bowl brushes, germs or messy bowl cleaner! Read more.

BRAND ACTIVITY

Win a Chevy Spark with Mageu Number 1 To celebrate the launch of the new Mageu Number 1 Strawberry Flavour, South Africa’s favourite drink and Sunday World, South Africa’s original tabloid, are giving away a Chevy Spark 5 Door Hatch L worth R62 000! Read more.

Makhatini triumphs again
Who can forget the legendary "Makhatini from Maritzburugh" Lunch Bar commercial? Lunch Bar has become a distinctive brand in the market since 1980 and remains a favourite in the minds of South Africans. April 2006 saw Cadbury introduce its newest commercial into the Makhatini success story with all the humour and valour we've come to expect from this fun loving Cadbury brand.
Read more.

Ciro Liquid solutions a huge hit at Hostex
Hostex, South Africa's largest food and beverage industry exhibition, took place from 31 May - 2 June in Cape Town. The Ciro Alliances stand was a constant hub of activity, offering visitors to the expo literally anything under the sun in terms of liquid refreshment; from hot chocolate to mango juice, tea to speciality coffees and everything in between.
Read more.

Canderel to partner with Vodacom Durban July Fashion Experience
Canderel on Tuesday last week announced its sponsorship of the Vodacom Durban July Fashion Experience. The event is synonymous with being at the forefront of South African fashion, and with the substantial increase in interest and a sustained growth in the fashion element of this event, Canderel and Vodacom Durban July Fashion Experience is a perfect match.
Read more.

Trinco takes part in the Young Community Shapers Promotion
The Young Community Shapers promotion is an uplifting initiative which is run by the Independent Cash and Carry Group (ICC). Trinco, which is produced by National Brands Limited, is one of the brands involved in this project, which encourages and rewards young people for positive involvement within their communities.
Read more.

WINE, BEER & SPIRITS

Swartland Winery offers wines for your lifestyle Whatever the occasion, Swartland Winery has a value wine to match it - one that will enhance the enjoyment of the company, food and event, without breaking the bank. The "Lifestyle" range has recently been re-launched with stylish new labels offering a modern look, whilst offering excellent value. Read more.

Worcester wine co producing first Braille wine bottles
Worcester Winelands, launched eight months ago to sell wine in the world's first Braille wine bottles, is ramping up its production to meet orders of about R6m. The idea behind the Braille bottles was an ambitious plan to rebrand Worcester and put it on the map.
Read more.

Cellar d'Or enters joint venture with well-known winemaker
New wine development, Cellar d'Or, has entered into a joint venture with well-known winemaker, Oliver Meckler of the award-winning Adler Wines. The deal appoints him as the in-house winemaker at the development when it opens its doors in March 2007. In addition, Meckler will be offering Cellar d'Or blending courses and functions to corporates and the public, as well as courses to learn how to make your own barrel of wine.
Read more.

Cape Legends Wines richly rewarded
The positive attention earned by Cape Legends boutique wines is playing a key role in raising visibility in an overcrowded market. Accolades such as the spate of gold medals on international and domestic shows earned by brands such as Stellenzicht, Neethlingshof, Lomond and Uitkyk, help wineries to stand out in a fiercely competitive market.
Read more.

Jo'burg Wine Show on track
Plans for the launch of the Jo'burg Wine Show are well underway with 68% of the exhibition space already taken up by wine producers and other wine-related players. The Jo'burg Wine Show will be held at Gallagher Estate from Friday 28 to Sunday 30 July 2006 and promises to provide a fun, unassuming atmosphere to learn, taste and buy local and international wines.
Read more.

FEATURED RETAIL SERVICES

The Alternative Consultancy Assisting clients in developing workable marketing plans and strategies, based on knowledge of both formal and informal trade and consumer sectors. Read more.

TFD Network Africa TFD are the forward-looking distribution company that keeps you in control of your outsourced distribution, thus growing your market position, brand strength and profitability. Read more.

Sainsbury Design A Through-the-Line Agency with specialist knowledge in Packaging Design. We offer a comprehensive range of services and strive to go beyond expectations, from creative execution, competitive quoting, to the high levels of services offered. Read more.

RETAIL SUPPORT

SAP Launches Governance, Risk and Compliance Management Business Unit to Lead New, Emerging Market SAP AG (NYSE: SAP) has announced the creation of a new business unit to empower customers with end-to-end solutions for governance, risk management and compliance (GRC), offering a holistic alternative to the fragmented GRC point solutions available in the market. Read more.

ProScan forms RFID Division ProScan Systems recently formed a Radio Frequency Identification (RFID) division to handle the growing demand for information and solutions on this latest technology. RFID is a complement to the industry's current barcode-based tracking systems, allowing companies to automatically track inventory throughout an entire supply chain. Read more.

Take advantage of the opportunities within your store Within seconds of potential customers crossing the threshold of your store, they respond to visual cues, including colour, graphics and signage. Therefore, it makes sense to use the floor, counter tops, painted walls and hanging banners to make a statement and attract clients to key areas you want them to focus on. Read more.

Packaging innovation deters product tampering
Product tampering has become a real challenge for retail businesses and is an occurrence that could harm unsuspecting consumers and lead to serious adverse health consequences. Following a spate of negative press, there has been a trend to incorporate packaging safety features as a standard for all consumable items that can be ingested by humans.
Read more.

FASTMOVERS

New Group Marketing Director for Cadbury Cadbury South Africa is pleased to announce the appointment of Geoff Whyte as their new Group Marketing Director. With over 12 years experience in the Marketing and Fast Moving Consumer Goods arena, Geoff brings with him not only extensive knowledge and expertise but also a passion for the industry.

FEATURED EVENTS

Cards Africa 2006 The Cards Africa 2006 conference is Africa's only director-level smart cards event dedicated to payments, transactions and loyalty. From 9 - 12 October 2006, senior executives within the cards industry will converge at Sandton Convention Centre, Johannesburg, South Africa, to address fresh and practical ideas on how to expand their businesses in the African continent. Read more.

EVENTS

Building Quality Information Conference
Due to popular request, the "Building Quality Information" Conferences have been cancelled and will be replaced in October with the "Improving Your Supply Chain" Conferences. This will give us an opportunity to address a wider topic and to follow up on the "Back to Basics" Conferences held last year. Please see our web site www.gs1za.org for more information or phone Delia on 011 789 5777.

Swartland wine, opera and Italian pasta evening
20 June 2006 - Cape Town
Join Swartland at the Societi Bistro at the V&A Waterfront for a night of wine, opera and Italian pasta with special entertainment from acclaimed tenor Jannie Moolman.
Read more.

Nederburg Exclusive Winter Dinner
24 June 2006 - Cape Town
An exclusive five-course dinner in Nederburg's historic manor house.
Read more.

Stakeholder Reputation Short Course
26 - 27 June - Johannesburg
This 2-day course explores how stakeholder relationships impact on the creation of organisational reputation.
Read more.

Finding the Fortune at the Bottom of the South African Pyramid
12 July 2006 - Parktown
Eighty20 brings you a fascinating overview of the low-income market in South Africa.
Read more.

SOCAP Breakfast Event
14 July 2006 - Fourways Crossing
Brad Arden, Director of TQ² Consulting: Building Team Intelligence at Work talks about "Service is a Team Sport".
Read more.

Annual Franschhoek Bastille Celebrations
15-16 July 2006 - Cape Town
A "great food and great wine" themed festival to be held in Franschhoek.
Read more.

Africa's Big Seven 2006
23-25 July 2006 - Midrand
An integrated exhibition platform that showcases food, retail and FMCG products together with the processes to manufacture them.
Read more.

Cleantex Africa 2006
23-25 July 2006 - Midrand
Africa's hygiene, cleaning, maintenance, pest control and facility management services exhibition.
Read more.

The Jo'burg Wine Show
28 - 30 July - Gallagher Estate
A three-day event affording the opportunity to learn, try and buy wines in a relaxed and unassuming setting.
Read more.

Nedbank Cape Winemakers Guild Auction
17 August 2006 - Camps Bay
Discover the exceptional wines South Africa's leading winemakers will be offering at the 21st Nedbank Cape Winemakers Guild Auction.
Read more.

The 3rd South African Red Bull Box Cart Race
27 August 2006 - Johannesburg
One cart, 4 team members, an operational steering wheel, functional brakes and a hooter…
Read more.

RMB WineX Cape Town
30 August - 1 September 2006 - CTICC
WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries.
Read more.

Good Food & Wine Show
2 - 5 November 2006 - Gallagher Estate
South Africa's largest food, wine and lifestyle celebration.
Read more.

THE FAST MOVING FACT

South Africans consume over five billion litres of alcohol per year. Statistics show that there is one liquor outlet (23 000 licensed and 200 000 unlicensed) for every 190 persons in South Africa.

For Fast Moving Fact submissions, please e-mail editor@fastmoving.co.za

PICK 'N A WINNER

SHOPTALK

For more than 35 years, Pick n' Pay has delivered a fantastic return to its shareholders, who I'm sure are more than happy. More importantly however, they have delivered a world class performance to South African consumers - they may have lost ground to Woolworths in certain areas, but you can be sure that they have a strong team working very hard to gain that back.

Exciting times are ahead at Pick 'n Pay with a further 59 stores planned for this year, on top of the 49 already opened last year. The opening of six new Hypermarkets is an aggressive, well timed move that in my mind will significantly strengthen that division and its contribution to the group.

On the salary issue, the shareholders are the only ones who matter, and they will tell you that for that price, he comes cheap, so it is not really an issue at all.

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

March retail sales up
According to reports from Statistics South Africa, South Africa's retail sales, the primary indicator of consumer demand, rose by 10.9% in the year to March at constant prices. In the three months to March, retail sales rose by 9.4% compared with the same period 12 months ago, also at constant prices.
Read more.

Pick 'n Pay chief takes home R23.7m
In the group's annual report, it was reported that Pick 'n Pay chief executive Sean Summers received a remuneration package of R10.2 million in financial 2006, which was boosted to R23.7 million by a profit of R13.5 million on shares that he sold during the year. The report disclosed for the first time, in line with the new disclosure requirements, the estimated expense incurred by the company in issuing options to the executive directors.
Read more.

P 'n P sets their sight on 59 new stores
Some interesting developments came out of the Pick 'n Pay annual report, released last Tuesday. One of the highlights was that Pick 'n Pay are planning on opening a further 59 stores in the next year - this follows the 49 new stores that were opened in the last year.
Read more.

GSK offers $15bn for Pfizer unit
It has been reported that in one of several bids received, GlaxoSmithKline has offered $15 billion (R102 billion) for Pfizer's consumer unit. Johnson & Johnson and the UK's Reckitt Benckiser had also offered more than $14 billion.

Sea Harvest, Union settle differences
Sea Harvest can breathe easy for a while with employees back at work following the recent two week strike. There are still rough seas ahead though, with the business now having to restore profitability. In the six months to March they reported a R9.6 million loss due to smaller catches, higher fuel costs and the strong rand Renumeration Committee.
Read more.

GLOBAL NEWS

Morrisons appoints new chief executive
Ending months of speculation, Morisons in the UK yesterday announced that it has appointed Marc Bolland to replace Bob Stott as chief executive and also stated that David Jones will retire as deputy chairman at the end of this month. Bolland begins his new role from September 1st.

Wal-Mart pledges to continue change
In a keynote speech to shareholders, associates, managers and company leaders at the company's annual meeting last Friday, CEO Lee Scott described Wal-Mart's ongoing transformation as delivering results for the company and the customers and the communities Wal-Mart serves. Calling the transformation plan "Wal-Mart Out in Front," Scott pledged to continue implementing changes that have driven growth and efficiency at Wal-Mart this year.
Read more.

SPECIAL FEATURES

New launches - AC Nielsen In 2005, South Africa saw the launch of over 10,500 new items in the local FMCG market. However, the high number of local new launches is not enough to draw conclusions about success. It must be measured as to whether new launches made any impact on competitors, relevant categories or their own master brands. Read more.

Find out how Aldi works - Planet Retail Over the years, both admiration and criticism have followed Aldi's expansion around the globe. In fact, few retailers have prompted as much debate amongst consumers, full-range competitors and manufacturers. And no other retailer has achieved the near cult-like following that Aldi enjoys in its home market, Germany. So, what's behind this discount phenomenon? Is it more than just a low price guarantee? Read more.

FEATURED BRAND

Tydstroom Farm Fresh Chicken You'll taste the difference and love the goodness. Read more.

BRAND NEW

NEW! New healthcare range from Clicks In line with Private Label being one of Clicks' strategic areas of focus for growth, a range of exciting new products were introduced onto their shelves during the month of May 2006. With the majority of the product lines focussed on strengthening the immune system, our timing with the cold winter months ahead, could not be better! Read more.

NEW! Danone Clover Activia now available in SA Thanks to a media focus on digestive disorders, more and more consumers are adopting healthier diets. Yoghurt has always been popular with the health conscious, and it's about to become even more popular, with the introduction of new Danone Clover Activia. Read more.

NEW! New look, better taste for Coke Light Coca-Cola light is being re-launched in South Africa, with a new look and better taste. The move follows extensive quantitative research, during which local consumers confirmed their preference for the fresh packaging graphics and improved reformulation that will be available in-store from June. Read more.

BRAND ACTIVITY

Bakers Mini Cricket delegation tours the Boland Representatives from Bakers Mini Cricket and the United Cricket Board (UCB) recently undertook a two-day tour of the West Coast and attended Bakers Mini Cricket training clinics, coaching sessions and festivals held in the region. Read more.

Game returns to Ladysmith
The 69th Game Store opened in the Kingsgate Centre in Ladysmith on May 31. The cheers that greeted the opening of the doors were a sign that Game had been missed and that the discount retailer's return to the region after seven years had been eagerly awaited.
Read more.

WINE, BEER & SPIRITS

Enjoy a Swartland wine, opera and Italian pasta evening Book your tickets now for a wonderful Italian inspired evening on Tuesday 20 June, when Swartland Winery presents their Indalo wine in association with Fine Music Radio 101.3. Entertainment for the evening will be provided by acclaimed tenor Jannie Moolman. Read more.

Clos Malverne takes triple gold Stellenbosch wine farm Clos Malverne has struck a golden vein of form on this year's international and local wine-competition circuit, with three of its premium reds winning gold medals. Read more.

Weltevrede Oupa se Wyn receives excellence award Oupa se Wyn (Grandfather's Wine), a red muscadel from Oupa se Wingerd (Grandfather's Vineyard) has just received the platinum award for excellence from the Muscadel Association of South Africa. Read more.

FEATURED RETAIL SERVICES

Thinking big - Spending Small? Let UCS Solutions help your company become the retail star of tomorrow... UCS Solutions is hosting a breakfast to introduce the power of SAP Retail - come and explore key retail trends and how retail applications are evolving to respond to these. Read more.

Nicolene Di Bartolo scoop Business Times Careers Awards Both Nicolene Di Bartolo Management Appointments, as well as our partner company, Strategy Recruitment Marketing, have won awards for best Black and White Display Adverts by the Sunday Times and Business Times within the Senior Executive/Professional/Admin/Finance and Sales/Marketing/Retail categories. Read more.

Marot & Sanders As Retail Image Specialists, Marot & Sanders are uniquely positioned to boost your brand identity at every level of interaction with the retail consumer. Read more.

RETAIL SUPPORT

SAP partners with TATIS SA on customs and border management Creating a competitive advantage in the customs and border management market for both companies, Geneva-based TATIS SA customs management specialists and global business solutions giant, SAP AG, have formed an alliance partnership in which they will jointly market and implement the world's only customs management system (TATIScms) that is integrated with a tax management system (SAP PSCD). Read more.

MTN says hello to bus advertising The use of moving media has taken off as the more exciting alternative to static billboards, reaching a diversity of commuters through bus, taxi and train advertising and achieving both regional and national exposure, to meet the campaign's target audience. One of the most impressive moving media campaigns is the MTN buses. MTN has acquired space on the transit buses that carry passengers to and from aircraft, achieving magnified exposure by their movement around airports. Read more.

FASTMOVERS

New HR group director for Clicks New Clicks Holdings have extended their senior management team with the appointment of Bertina Engelbrecht as group director for human resources and organisational development with effect from 1 July 2006.

EVENTS

Get "Ready to Retail"
13 June 2006 - Woodmead
Join UCS in exploring key retail trends and how retail applications are evolving to respond to these.
Read more.

Building Quality Information Conference
13 June - Durban, 15 June - Cape Town, 20 June - Johannesburg
GS1 South Africa, along with ECR South Africa and PDC.za will be hosting a conference about Global Data Synchronisation (GDS) as a building block for a collaborative supply chain and how it provides real business benefits.
Read more.

Swartland wine, opera and Italian pasta evening
20 June 2006 - Cape Town
Join Swartland at the Societi Bistro at the V&A Waterfront for a night of wine, opera and Italian pasta with special entertainment from acclaimed tenor Jannie Moolman.
Read more.

Nederburg Exclusive Winter Dinner
24 June 2006 - Cape Town
An exclusive five-course dinner in Nederburg's historic manor house.
Read more.

Finding the Fortune at the Bottom of the South African Pyramid
12 July 2006 - Parktown
Eighty20 brings you a fascinating overview of the low-income market in South Africa.
Read more.

SOCAP Breakfast Event
14 July 2006 - Fourways Crossing
Brad Arden, Director of TQ² Consulting: Building Team Intelligence at Work talks about "Service is a Team Sport".
Read more.

Annual Franschhoek Bastille Celebrations
15-16 July 2006 - Cape Town
A "great food and great wine" themed festival to be held in Franschhoek.
Read more.

Africa's Big Seven 2006
23-25 July 2006 - Midrand
An integrated exhibition platform that showcases food, retail and FMCG products together with the processes to manufacture them.
Read more.

Cleantex Africa 2006
23-25 July 2006 - Midrand
Africa's hygiene, cleaning, maintenance, pest control and facility management services exhibition.
Read more.

The Jo'burg Wine Show
28 - 30 July - Gallagher Estate
A three-day event affording the opportunity to learn, try and buy wines in a relaxed and unassuming setting.
Read more.

Nedbank Cape Winemakers Guild Auction
17 August 2006 - Camps Bay
Discover the exceptional wines South Africa's leading winemakers will be offering at the 21st Nedbank Cape Winemakers Guild Auction.
Read more.

The 3rd South African Red Bull Box Cart Race
27 August 2006 - Johannesburg
One cart, 4 team members, an operational steering wheel, functional brakes and a hooter…
Read more.

RMB WineX Cape Town
30 August - 1 September 2006 - CTICC
WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries.
Read more.

Good Food & Wine Show
2 - 5 November 2006 - Gallagher Estate
South Africa's largest food, wine and lifestyle celebration.
Read more.

THE FAST MOVING FACT

Statistics show that more than 138 million customers visit Wal-Mart stores per week worldwide.

For Fast Moving Fact submissions, please e-mail editor@fastmoving.co.za