Mr. Summers takes a bow

Mr. Summers takes a bow
March 2007 will be see the dawning of a new era for Pick 'n Pay. Chairman Raymond Ackerman today announced that Sean Summers has resigned and will be succeeded by Nick Badminton, current head of Retail Operations. His departure may seem a little premature, but given that Summers has been at the helm of the company for 11 years, it is not altogether unexpected.

So where to from here? Summers will be taking some time out to access his future, but will be available to Pick 'n Pay as a consultant. Furthermore, I have no doubt that the assets he has accumulated within the company, coupled with his strong moral commitment to the business, will ensure that he stays in close proximity. This will perhaps also provide a welcome change, where the only harassment he will now have to endure will be that of car dealers trying to coax him into buying an even more powerful car!

For Pick 'n Pay little will change - the succession has been well planned, and Nick Badminton is the ideal successor. He has a more calculated and conservative approach, which I believe will be vital for the company when executing a massive growth phase, intended to be off the ground by the time that he takes the helm. He will have to deal with the aftermath of that growth in what may be quite a difficult retail environment.

I would like to take this opportunity to thank Sean for his contribution to the industry - it is greatly appreciated. I would also like to congratulate Nick Badminton on his appointment and wish him all the best for the 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

Pick 'n Pay's Summers takes a bow
It's official - Pick 'n Pay's Chairman, Raymond Ackerman, has confirmed that Sean Summers has resigned from his position as CEO. Summer began his carreer with Pick 'n Pay in 1974 as a trainee manager, and was appointed CEO in 1999. He will be succeeded by current Retail MD, Nick Badminton, in March 2007.
Read more.

Shoprite condemns incidents of violence and intimidation
In a statement last Monday, the Shoprite group said it has always been the group's policy not to debate or discuss matters between the company and its employees in the media. However, the violent conduct of a minority of members of its representative labour union, Saccawu, in localised areas in the Eastern Cape, Salt River and Khayelitsha has prompted the company to condemn the incidents of violence and vandalism at some of the group stores in the strongest terms.
Read more.

Fake Canderel alert!
Canderel South Africa has warned consumers to be on the lookout for counterfeit Canderel sweetener sachets that has surfaced in coffee shops, restaurants and other retail outlets throughout South Africa.
Read more.

Coca-Cola Africa settles in SA
In a clear signal of its commitment to growing its business in Africa, The Coca-Cola Company is relocating its Africa Group Office from Windsor, U.K., to Johannesburg, South Africa, beginning January 2007, the company announced on Friday. The final move will be completed in June 2007.
Read more.

GLOBAL NEWS

China Still Drives Growth in Asian Retail Sector
Despite little change in rank among the largest grocery retailers in Asia & Oceania during 2005, China continues to be a main driver of growth in the region. Planet Retail's recently published Top 30 Grocery Retailers in Asia & Oceania shows that the region's largest grocery retailers are generating more of their sales from China, a proportion which has grown from 0.8% to 5.2% between 2000 and 2005 and is predicted to grow to 12% by 2010.
Read more.

Woolies Oz report record annual profit
Australian retailer, Woolworths, has reported a 24.5% rise in net profit for the year to June to AUD1.015 billion (USD 752.4 million). The retailer said the result was at the top end of their earnings guidance and the outcome of a consistent delivery of strategies which began in 1999.
Read more.

Sainsbury overhauls premium private label
As reported in the UK marketing press, Sainsbury is to relaunch its Taste the Difference premium food private label range. The initiative will be backed by an ad campaign in September, using the strapline 'Rediscovering taste'. It is understood that the packaging will be changed and the range expanded.

RESEARCH

GM foods not properly tested
In a recent telephone study conducted by Research Surveys amongst a sample of 505 SA adults in the three major metropolitan, people were asked how they feel about genetically modified foods. They were asked to agree or disagree with a set of three statements on this topic.
Read more.

Food security - a consumer perspective
South African consumers are also to blame for poor food security. If there is a problem - a dented can, damaged packaging or spoiled goods - they tend to be apathetic, shrug and throw the product away. When they do complain, they happily accept reimbursement or a replacement product. But this is unacceptable if consumers are to expect proper risk management in the South African food industry.
Read more.

To launch, or not to launch, that is the question
The use of test marketing techniques to forecast a new product's potential is being increasingly scrutinised by marketers. Consistently high failure rates among new products worldwide and a string of extremely expensive, high-profile failures have stimulated the debate and made many brand managers wary.
Read more.

FEATURED BRAND

Simba Chips Whether salted or flavoured, crinkled or flat cut, the secret of Simba's success is simple: never, ever compromise on quality! Read more.

BRAND NEW

NEW! Woolies introduces fabulous fresh baby food In another first for South Africa, Woolworths has introduced a range of freshly made baby food which have been carefully prepared from only the freshest, specially selected ingredients. Designed to meet baby's needs during weaning, Woolworths 'really good food for babies' contains no added sugar, starch or salt and is free from colourants, flavourants, and added preservatives. Read more.

NEW! Canderel turns fashion into a Pocket Pack! Canderel have announced the first time inclusion of South African designers in its annual designer created Pocket Pack Fashion Collection. The South African Pocket Pack Fashion Collection will feature selected local designers who will share the company of international icons Jean Paul Gaultier, Karl Lagerfeld. Christian Lacroix and Patrick Cox - all of whom have contributed to the Canderel Pocket Pack Fashion Collection in the past. Read more.

NEW! Introducing the only soft-centre filled muffin in South Africa! Pillsbury is proud to introduce the latest addition to their Rich & Moist Muffin Mix range - Pillsbury Chocolate Caramel Muffins! Launched in June 2006, this unique muffin takes the two most popular flavours in South Africa, and puts them together to make a delicious chocolate muffin with a creamy, caramel soft-centre. Read more.

NEW! Fresh new offerings from Simonsberg The Simonsberg stable of masterly crafted cheese brings a new gourmet cheese platter to market, and also a revamped packaging of Feta and Simonzola. Simonsberg's new gourmet cheese platter takes the guess work out of compiling a cheese board. The platter brings together a tantalising selection of five award-winning cheeses, from creamy Camembert, Simonzola and cream cheese portions to a stalwart Cheddar. Read more.

NEW! Denny canned mushrooms freshen up Continuing to enjoy prime shelf space across the country, mushroom producer, Denny, is on the rise again with the refurbishment of the classic canned mushrooms now dressed in fresh new packaging, reinforcing Denny's popularity in the convenience food sector. Read more.

BRAND ACTIVITY

Now showing! Great new ideas from Addis Between July & December 2006, Consumers nationwide will be exposed to products from Addis through 4 heavy bursts of TV activity. Each of the 4 bursts will deliver over 400 AR's, reaching over 72% of our target audience with an average frequency of 5.6 opportunities to see the advertisement! Read more.

Consumers win with Virgin Energy Shot A recent Virgin Energy Shot competition saw Clicks Clubcard members automatically entered into a draw to win a Virgin Energy Shot mini fridge when purchasing 2 or more cans of Virgin, discounted to R9.99 for the promotion. 1 fridge was made available at each store! Read more.

Mageu moves Mr and Miss TUT Pretoria Campus 2006 The Tshwane University of Technology will be hosting the Mr and Miss TUT. On the 23 August they will be traveling on the Mageu Number One bus to Atteridgeville and visit various organizations. The 31 August 2006 is the finals and we will then be able to see the new Mr and Miss TUT Pretoria Campus 2006. For more information you can phone Tebogo Jacko Magubane 012 382 4281. Read more about Mageu Number One.

Frisco's winter promotion comes to an end The Frisco 'Enrich Yourself and Win' Winter Promotion recently ended with Bochabela resident Joel Leo walking away with R40 000 in a live draw at the Welkom Shoprite. The Frisco promotion gave three consumers the opportunity to take home their share of R3 million, in one of three live draws, which took place between June and August across the country. Read more.

WINE, BEER & SPIRITS

Brutal Fruit Fantasy Survey reveals what women want Volumes have been written about what women really want and, in a recent survey of South African women, the Brutal Fruit Fantasy Survey sought answers to some of life's most burning issues. It reveals that, without hesitation, most women in this country placed shopping before sex at the top of their fantasy hit parades, closely followed by spending time on a tropical island with their partners. Read more.

Jordan launches new Chameleon Label Jordan has released the 2006 Chameleon Sauvignon Blanc / Chardonnay and 2004 Chameleon Cabernet Sauvignon / Merlot in sophisticated and stylish new packaging - the Chameleon has changed colour! Read more.

Exciting new look marks the future of Boschendal Wines Boschendal is proud to unveil the new-look Boschendal 1685 range of wines. The five wines that complete the range - including a multi-dimensional Sauvignon Blanc and elegantly spicy Shiraz - are packaged in Boschendal's own, bold bottle and boast a unique label design, which will stand out on any wine shelf and complement every dining table. Read more.

Fleur du Cap crowned top white wine at Winemakers' Choice awards Fleur du Cap Unfiltered Sauvignon Blanc 2005 Limited Release has excelled at this year's Winemakers' Choice awards by clinching the Winemakers' Choice White Wine Trophy and a Diamond Award. This prized Sauvignon Blanc also scooped a Double Gold medal at the 2005 Veritas Awards. Read more.

FEATURED RETAIL SERVICES

Nicolene Di Bartolo Careers Nicolene Di Bartolo Management Appointments Jobs. Read more.

Samplex One of the leaders in below-the-line, one-to-one communications in South Africa. Read more.

RETAIL SUPPORT

SAP's CRM offering moves into world no. 1 slot According to a report issued at the end of June 2006 by technology industry research house, Gartner Inc, the customer relationship management (CRM) application from global business solutions giant, SAP AG, has the largest share of the global market - based on software revenues that include new licenses, updates, subscriptions and hosting, technical support and maintenance. Read more.

Sainsbury the brains behind Candy Andy Sainsbury Design were briefed to design a corporate brand logo and a range of packaging design for Candy Andy. Sporty C was developed as a range of Fat Free & Vitamin C enriched tablet sweets packed in compact roll form. Read more.

Brand enhancement is foil's paradise Hot and cold stamping foils are widely used in the advertising and packaging industries to enhance and add value to the appearance of a product. The popularity of hot stamping foil is due to its added value or perceived value by enhancing product appearance. Products with foil on the label have a better shelf presence than non-foil labeled products as the consumer is more likely to be attracted to the packaging. Read more.

EVENTS

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.

ShopX Africa 2006
21 - 22 August 2006 - Durban Exhibition Centre (Conference & Expo)
7 - 9 September 2006 - Sandton Convention Centre (Trade Exhibition)
SHOP-X is the only comprehensive and influential stationary and office trade show on the African continent.
Read more.

The Fortune at the Bottom of the South African Pyramid with Eighty20
13 September 2006 - Mount Nelson Hotel (CT)
Inspired by the work of C.K. Prahalad and others on the Bottom of the Pyramid, Eighty20 brings you a fascinating overview of the low-income market in South Africa.
Read more.

Connecting with Black Diamonds
12 - 15 September 2006 - Durban, JHB & Cape Town
The UCT Unilever Institute, Research Surveys and the SABC join forces to reveal valuable insights into the lives of 'Black Diamonds'.
Read more.

Jozi Cheese & Wine Festival
6 - 8 October 2006 - Helderfontein Estate
The Jozi Cheese & Wine Festival will provide a fantastic day 'in the country' for visitors at the beautiful Helderfontein Estate.
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.

Robertson Wine on the river Festival
20 - 22 October 2006 - Robertson
The Festival will offer visitors a comprehensive showcase of the Valley's wines from 40 wine farms.
Read more.

RMB WineX Gauteng
24 - 27 October 2006 - Sandton Convention Centre
RMB WineX 2006 represents the entire spectrum of Cape wine producers showcasing every wine route in the country.
Read more.

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

Retail Loss Prevention Africa 2006
20 - 23 November 2006 - Sandton Convention Centre
Focused on delivering expert experience and know how for ensuring you reduce your losses and stock shrinkage.
Read more.

No Frills Discounter For SA

No frills discounter for SA
This week we have a report from Planet Retail that highlights the growth of discount stores in Europe. The interesting thing is that this format is gaining market share in emerging markets as well as in developed markets and it is not just the traditional no frills discounters that are getting in on the action. Tesco are expecting great things from their no frills format that was launched in the Czech Republic, and there is little doubt that the model will be rolled out in other markets should the pilot be deemed successful.

South Africa does not as yet have a no frills discount offering, but I am confident that in the not too distant future we will see this gap filled by a retailer - possibly even an international one. The format offers a much needed price benefits for the middle to lower income segments which makes it the ideal basis on which to develop a model for Africa.

Here are two questions on which to ponder:
Are South African retailers prepared to develop a no frills format?
Are South African retailers prepared for a foreign entrant that adopts this format?

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

Unique Marketing and Education Upliftment opportunities for SA brands! Two Durban ladies have launched EDU-Self - a uniquely South African publication with a highly visual and multi-lingual format, enabling adult learners to teach themselves in their work place, in their own vernacular! Companies are invited to put their marketing and corporate responsibility budgets to this creative way of educating around the use of their products with a highly credible, educational message. Read more.

ID cards combat crime
Crime is a perennial and almost endemic problem in South Africa, and the FMCG industry is frequently seen as a soft target by criminal gangs. The Consumer Goods Council of South Africa has instituted a number of highly effective anti-crime initiatives, and to counter more sophisticated criminal activity, is stepping up its high-tech introduction of ID cards which provide an additional buffer to losses from both internal and external crime.
Read more.

Higher interest rates not necessarily an end to growth
Although food retailers have not been as badly affected by interest rate hikes, other retail sectors of the JSE have taken a hammering after last month's 50 basis point rise in short-term interest rates. Having risen by 38% in the past year, the general retailers index has given up around a third of that in two months. But trading updates from the major players, coupled with comments from other retailers, suggest the falls may have been overdone and the share prices could be due for an upward rerating.
Read more.

SA grocers brushing up on environmental concerns
South African supermarket groups lag many of their European counterparts when it comes to recycling efforts, but some are playing catch-up on this environmental issue. In 2003 the government banned free lightweight plastic shopping bags, initially resulting in dramatically lower use of these bags, but customers have grown accustomed to paying for them and use has crept up, though not to preban levels.
Read more.

INTERNATIONAL REPORT

The future of discount retailing in Europe
A new report from Planet Retail reveals that more Europeans are turning to discount retailers. According to the report, much of the growth is due to international expansion as well as increasing consumer acceptance of the discount store format.
It attributes the change in attitude among European consumers to discount retailers' investment in marketing, new store concepts and broader product ranges.
Read more.

RESEARCH

South Africans as recreational shoppers
Three quarters of the world's internet-using population classify themselves as 'recreational shoppers' - meaning that they shop for entertainment rather than necessity, at least occasionally. The South African picture is very similar, with only 26% of web-using consumers never visiting stores for recreational purposes.
Read more.

SA consumers shop mainly on weekends
The Newspaper Advertising Bureau has conclusively researched consumers within its footprint areas and confirmed that Wednesdays and Thursdays are the days most used for planning shopping trips. Fridays, Saturdays and to a degree Sundays, are highly utilised for actually making purchases.
Read more.

Connecting with consumers through effective Product Placement drives positive emotive linkages
Product placement, although not a new concept, has often been overlooked in classical marketing strategies, says Grazyna Koscielska, director of brand and licensing agency Stimulii. However, with the introduction of technologies such as PVR and Tivo (US equivalent), increased clutter and consumer switch off during commercials, marketers have to continually fight tougher battles for consumer attention.
Read more.

FEATURED BRAND

Clover Cheese Clover has every kind of cheese for any cheese-lover's palate. Choose from a variety of hard cheeses, cottage cheeses, feta and speciality cheese, and many more. Read more.

BRAND NEW

New! Introducing Bakers Froozels Bakers Froozels, the new fruit-flavoured baked crisp snack is another exciting innovation from the Bakersman. Designed as a convenient, tasty snack, these bite-sized, scrumptious biscuits, covered with sugar sprinkles, are ideal for an anywhere, anytime treat. Read more.

New! Introducing new sparkling Eno Apple Introducing the new sparkling Eno Apple - the first of its kind! Currently offered in three flavours - regular, orange and lemon, Eno continues to grow from strength to strength with the introduction of this exciting new variant. Read more.

New! Seagro's odourless seaweed gel Another new addition to the Seagro product range is their odourless seaweed gel. This product is recommended for potplants, hanging baskets, bulbs and seedlings as well as a seed soak to increase seed germination. This product is very economical as small dosages are required for maximum results. Read more.

BRAND ACTIVITY

Exciting developments for Nutritional Foods Sunspray Food Ingredients, formerly part of Nutritional Foods, is proud to announce the start of a new era. Nutritional Foods has restructured to focus on its core business of spray-drying. The restructure involves the sale of the Klerksdorp factory, where the company makes nutritional products for feeding schemes and catering. Read more.

Congratulations to the Trinco Tazz winners! Trinco's national shopper promotion, which ran until the end of June, offered shoppers the opportunity to win one of two Toyota Tazz Sports, as well as weekly cash prizes. The draw for the winners of the vehicles took place on 18 July. Five finalists were drawn from across the country and flown up to attend a brunch and "key fitting" ceremony at the offices of Samplex in Johannesburg. Read more

WINE, BEER & SPIRITS

Neethlingshof noble late harvest wins in inaugural terroir award
Neethlingshof's newly released 2005 Noble Late Harvest Weisser Riesling has been judged the national winner in the natural sweet wine category of the inaugural SA Terroir Wine Awards. The Stellenbosch estate's signature wine was also a winner in the 2005 SA Young Wine Show in the noble late harvest class. Winemaker De Wet Viljoen describes it as "liquid gold but with a vibrant acidity that tempers its lovely apricot sweetness".
Read more.

Zonnebloem Lauréat 2004 strikes its second international gold Zonnebloem Lauréat 2004, known internationally simply as a Cabernet Sauvignon/ Merlot blend, has continued its winning streak internationally by clinching a Best in Class gold medal at this year's International Wine & Spirit Competition. Earlier this year, this prized Bordeaux blend also scooped a gold medal at the prestigious 2006 International Wine Challenge in London. Read more.

RMB Winex Cape Town - 1 200 wines from over 200 producers on show
Sponsored by Rand Merchant Bank and partnered by British Airways Comair and 567 Cape Talk, WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries. It represents the entire spectrum of Cape wine producers showcasing every wine route in the country. In a major innovation, RMB WineX Cape Town, now in its fourth consecutive year, will extend Wine Route Cellar Door sales with a SHOP@SHOW facility that will include home delivery at no extra cost.
Read more.

FEATURED RETAIL SERVICES

Supply Chain Services Supply Chain Services is a national sales & distribution company in the food, beverage & pharmaceutical industry. 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.

RETAIL SUPPORT

Battling to keep the soul of the Midsize Enterprise in tact while shooting for optimal growth Movements in trade and entry points into new high growth markets in the world economy are catapulting Small & Midsize Enterprises (SMEs) into a new league to compete in more countries against large companies. But midsize businesses are finding globalization cuts both ways - for each new opportunity there is a gargantuan new challenge. Read more.

Datamax Linear Scanners ensure barcode readability ProScan Media Products(PMP), specialists in barcode labelling products and printing solutions, recently introduced the Datamax range of Linear Scanners, which is an affordable, rugged and effective method of ensuring barcode readability. Read more.

Transunion and Cheque Guarantee Services join forces
South African retailers' fight against cheque fraud has been significantly boosted by the acquisition of Cheque Guarantee Services (CGS) by TransUnion. The merged operation, TransUnion Cheque Guarantee Services, draws on the best of both companies. Now businesses can leverage TransUnion's business intelligence capabilities and global experience in the development of risk management tools, services and solutions, and CGS's unique high-tech system of cheque transaction analysis and tracking, to assist South African retailers to manage their cheque risk more effectively.
Read more.

FEATURED EVENT

Shop-X Africa 2006 The South African Association for Stationary, Home & Office Products (shop-sa), will be holding its annual trade show with an exciting new look, feel and name: SHOP-X 2006! Read more.

EVENTS

Bar Code Basics
8 - 10 August - Durbanville & Germiston
Aimed at the Design, Repro and Print industries to bring them up to date with Retail Bar Code Quality and GS1 Standards, and their impact on consumer packaging.
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.

ShopX Africa 2006
21 - 22 August 2006 - Durban Exhibition Centre (Conference & Expo)
7 - 9 September 2006 - Sandton Convention Centre (Trade Exhibition)
SHOP-X is the only comprehensive and influential stationary and office trade show on the African continent.
Read more.

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

Retail Loss Prevention Africa 2006
27 - 30 November 2006 - Sandton Convention Centre
Focused on delivering expert experience and know how for ensuring you reduce your losses and stock shrinkage.
Read more.