Fair Pay

Fair pay?
Strike season is around the corner and trade unions have taken the opportunity to release a survey on executive remuneration. Retailers have been eyed as the main culprits due to the large disparity between executive pay and worker pay. The retail industry worldwide experiences similar arguments on an ongoing basis - I believe that this is largely due to the nature of the business rather than poor management on the part of the retailer.
Retailing is labour intensive and the majority of staff requires a relatively low skill level - any shareholder would find it difficult to pay more than an inflationary increase each year. The key is the development of staff, equipping them with skills that enable them to command a higher wage within the company.
A question I have is: What is an acceptable disparity between worker and executive pay? It is unlikely that any retailer will be able to keep a CEO whose salary is 20 or 30 times what the lowest paid worker earns. They would be snapped up by another industry in no time. Perhaps a better reflection of salary disparity would be to exclude the top 5% of executives and the bottom 5% of workers.

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

Economic climate boosts FMCG spend
With the exception of some short-term Rand fluctuation, South Africa is certainly looking positive from an economic perspective. Interest rates have slowed down substantially over the past 4 years; inflation has dropped and annually the Rand is looking strong. For the first time in years, we see consumer confidence being expressed by both black and white South Africans simultaneously, with GDP also continuing to grow.
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Food prices on the up
Food prices have broken through South Africa's 6% inflation target. And some economists see food prices spiking even further in the coming months if global oil prices continue to soar above current record levels of $78 a barrel - a result of the latest fighting and political tensions in the Middle East.
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Online shopping forum / search engine launched
Following the successful launch of South Africa's first search engine dedicated only to online shopping in May this year, www.jump.co.za has just launched their innovative consumer forum. The web-based forum (www.jump.co.za/forum) caters for discussions about all products sold online and gives the consumer the ability to enquire and inform fellow consumers regarding any product related information, whether technical or general.
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RETAILER NEWS

Retail bosses earn 223 times more than employees
The remuneration packages of chief executives in the retail sector are 223 times greater than the pay of the average worker in the sector, according to a survey on executive remuneration released on Wednesday by trade union group Solidarity. According to the comprehensive survey, the retail sector has the greatest disparity between chief executives' and workers' pay.
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Shoprite sales rise 13%
Shoprite Holdings have reported an annual sales increase of 13 percent to about R33.5 billion in the 12 months to July 2 compared with the same period last year, which had an extra trading week. This despite facing a second strike in three years after it refused to increase wages, said the SA Commercial Catering and Allied Workers' Union.
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Woolies shows rising inflation
Trading figures from leading retail groups show that there has been a definite increase in inflation over the past six months. On Wednesday Woolworth said food inflation for the year to June was 4.2% compared to 3.7% for the six months to December.
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Game clothing donation boosts Browns' School fête
A donation of R25 000 worth of clothing by Game Stores is set to lend a distinctly fashionable air to the annual Browns' School fête which takes place at the school's Pinetown premises on September 2. The clothing is made up of garments and samples for all ages from Game's now discontinued clothing range.
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GLOBAL NEWS

Cadbury battle over purple
Global chocolate-maker Cadbury Schweppes on Monday last week lodged an appeal against a court ruling in Australia that denied intellectual copyright over the colour purple for its packaging and advertising. The company sued Australian confectioner Darrell Lea over its use of purple in 2003 but received an adverse ruling earlier this year.
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Woolworths Oz - the best is yet to come
For the year to end-June 2006, Woolworths in Australia has reported an impressive 20.4% increase in net sales to AUD37.7 billion. The group's supermarket division witnessed a 20.7% rise in sales to AUD32.4 billion due to the contribution from recent acquisitions.
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Casino exits Poland
As part of its non strategic asset disposal programme, French-based grocery retailer Casino has announced the disposal of its main assets in Poland for a total of EUR884 millions (USD1.1 billion).
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FEATURED BRAND

Woodlands Dairy To produce and deliver superior food products, whilst honouring our commitment to service excellence and integrity. Read more.

BRAND NEW

Nestlé Ice Cream launches 1.5lt Confectionary Range To add excitement to the Take Home segment during winter, Nestlé Ice Cream has launched an innovative 1.5lt Confectionary Range consisting of 1.5lt BarOne, 1.5lt Rolo and 1.5lt Sally Williams Nougat, all in an innovative carton tub (technology exclusive to Nestlé Ice Cream for 1 year). Read more.

Seagro Organic Fertiliser goes odourless and ready-to-use! Premier Fishing SA, producers of South Africa's premium organic fertiliser, SEAGRO, has once again extended their SEAGRO product range with two new seaweed based products that offers the gardener unique benefits. SEAGRO has been feeding gardens organically for more than 20 years and enjoy strong consumer loyalty. Read more.

First ever ultivitamin launched to SA consumer market! Ever-increasing daily pressure at work and home means a steady rise in the number of people searching for a product to help cope with mounting stress levels and hurried, unhealthy eating habits. In response to this demand, Merck has announced the launch of Multibionta, the first-ever ultivitamin to the SA consumer market. Read more.

BRAND ACTIVITY

Kitchen Companion winner announced! The "Your Kitchen Companion Quiz" has now come to an end and it's time to announce the winner of the Philips Cucina Food Processor. All other entrants who submitted 3 or more correct answers are automatically entered into our big "Your Kitchen Companion Competition", coming soon. Please keep visiting FMCG Files for competition details and more prizes to be won. And the winner is… Read more.

Dentyl pH 500 ml now number 1 in the UK! The Dentyl pH Mint 500ml mouthwash is now the No. 1 selling 500ml mouthwash by value in the U.K and the Dentyl pH Clove 500ml mouthwash is No. 3 with a 38% growth per year. Dentyl pH is presently one of the fastest growing mouthwashes in the U.K. and is clinically proven to be more effective than other mouth rinses for fresh breath. Read more.

Elixa's team expands Due to the increased demand for Elixa, especially in and around Johannesburg, Elixa has extended its Gauteng reach by employing a number of enthusiastic and dedicated Sales & Marketing Executives. The move to put more people on the ground is primarily to service our existing customers and to source new business opportunities by ensuring that our Customer has greater access to our secret powers! Read more.

NBL to invest in product extension National Brands is assessing its portfolio of tea, coffee and biscuit brands, with a view to consolidating and extending its strongest products. The idea, according to Executive financial director Keith Phillips, is to have fewer, stronger brands. It is very expensive to support brands. The trend now is to develop master brands and then extend that brand into a different category. Read more.

High tea and high fashion with Five Roses at Sanlam SA Fashion Week As one of South Africa's leading tea brands, Five Roses has long been associated with elegance, beauty and decadence - much like the world of fashion. It seems fitting that Five Roses will be associated with the Sanlam SA Fashion Week this year, the most premier event on the fashion calendar. Read more.

WINE, BEER & SPIRITS

Simonsig Chenin Blanc 2006 pinnacle of fruit-forward Simonsig Estate, home of intensely fruity Chenin blanc wines, has launched their 2006 vintage of this versatile white variety, showcasing yet another sterling performance of both nature and human intervention. Chenin blanc was the first wine released by Simonsig's late founder Frans Malan in 1968 and without compromising consistency in wine excellence after 33 vintages, the popularity of Simonsig Chenin Blanc remains unsurpassed. Read more.

Nederburg Auction set for Spring 2007
The date for the 33rd annual Nederburg Auction has been moved to Spring 2007 and will take place on Friday and Saturday, September 28 and 29. Traditionally held towards the end of the harvest period in April, the decision to postpone the event to later in the year is being made principally to accommodate new vintage specialist white wines, says auction manager Christine Joubert.
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FEATURED RETAIL SERVICES

Syndicate Personnel Syndicate Personnel Specialists is a boutique Sales and Marketing Recruitment Consultancy. Through a highly sophisticated search methodology we have dominated our niche market for the past twelve years! Read more.

Sainsbury Design We are a Through-the-Line Agency with specialist knowledge in Packaging Design. Read more.

Angle Orange Angle Orange is a young, dynamic Point Of Purchase Marketing company specialising in the design and production of merchandising systems and promotional displays. Read more.

RETAIL SUPPORT

SAP Delivers Next Evolution of Flagship ERP; Provides Users with More Choice and Enhanced Usability SAP AG (NYSE: SAP) has announced the global availability of mySAP™ ERP 2005, the latest version of its renowned enterprise resource planning application. The new version of mySAP ERP features more than 300 product enhancements to provide companies with better information access and decision support, including role-based, intuitive work centres that enable users with a single click-to-action. Read more.

ISO Amends RFID standard to include EPCglobal UHF Generation 2 Air Interface Protocol
EPCglobal Inc, the not-for-profit standards organisation dedicated to driving global adoption of the Electronic Product Code (EPC) for supply chain excellence, today announced that its UHF Generation 2 air interface protocol has been incorporated into the ISO/IEC 18000-6 Amendment 1 as Type C on UHF RFID by the International Standards Organisation.
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3PL and 4PL - What's the difference and why should you care?
The difference between 3PL service providers and so-called 4PL companies in the supply chain field has been one of the great talking points in and outside the global industry for some years. While the industry is one characterised by generally off-putting and confusing jargon and acronyms, this one is a very important distinction for service providers and their customers to understand.
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FEATURED EVENT

Africa's Big Seven! What's new - Technology Get a sneak peak into what's new in the technology field at this year's Africa's Big Seven! Read more.

EVENTS

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.
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Cleantex Africa 2006
23-25 July 2006 - Midrand
Africa's hygiene, cleaning, maintenance, pest control and facility management services exhibition.
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Philip Kotler Live
27 July 2006 - Johannesburg
Dr Kotler will present Winning Strategies: The Latest Marketing Thoughts on How to Create, Win, and Dominate Markets at the event.
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Trade day at the Jo'burg Wine Show
28 July - Gallagher Estate
Business men and women in the food and entertainment industry in Johannesburg are invited to the Jo'burg Wine Show's trade day.
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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.
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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.
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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.
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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…
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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.
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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.
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Good Food & Wine Show
2 - 5 November 2006 - Gallagher Estate
South Africa's largest food, wine and lifestyle celebration.
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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.
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