Thursday, October 21, 2010

Positive Forecast

Along with summer comes the promise of better days, and not just weather-wise.

In the recent past Pick n Pay have a received a bit of a bashing from the media most of which wasn’t entirely unjustified. Failing to live to up to ambitions, some their own, the group suffered somewhat. However this was, and is, in the face of particularly adverse conditions; an unfavourable trading environment, striking employees, and the continuing recession recovery. This makes it all the more encouraging to see positive developments coming from the group. They enjoyed strong growth in certain areas, including Liquor, Clothing and Private Label. In the case of the latter, they saw 11% growth which now accounts for 14% of packaged food sales, with further innovation to come. Furthermore, by implementing enhanced operating efficiencies and improved cost management they managed to moderate other negative factors. All this and more was covered in their recently released trading statement.

After weeks of frustration it seems that the end of the public sector strike is finally in sight. “’We have a deal. The unions that will sign from today (Wednesday, October 20, 2010) constitute a majority,’ Chris Klopper, a spokesperson for the Independent Labour Caucus federation, said on Tuesday.” Even so, the damage has been done and the road to recovery is sure not to be an easy one.

The Liquor industry made headlines this week as it was shown that it accounts for 4.4% of the country’s GDP. This thanks to the wide economic reach it has, making contributions from “manufacturing, packaging and marketing the company's products, and job support includes people the company employs and people who benefit indirectly from the sale of its products, such as bartenders.” SABMiller also made headlines as they boosted their SA sales by 3% for the first half of the year.

Here’s to hoping for an extended forecast of clear skies.


funkit fruit
funkit fruit is an exciting new range of Fruit Fillings and Toppings manufactured by Lakeland Food Company situated in the Garden Route Region of South Africa.
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Discover chocolatey fun at breakfast with the new Kellogg’s® Coco Pops® Choc’O’s®
We all know that breakfast is the most important meal of the day, and kids most certainly have set ideas about what they do and don’t like to eat. Often finding a middle ground with them on what to eat for breakfast can be challenging, so Kellogg’s® Coco Pops® is introducing a tasty breakfast option that will appeal to both the kids… and their parents.
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Friday, October 15, 2010

Retail trade sales update


Retail trade sales rose by 4.6% in August 2010 compared with the same period last year, according to data released by StatsSA on Wednesday. The growth, although positive, is in stark contrast to many predictions. Yet, it was not completely unexpected, "the slowdown I think is more than what one would have anticipated, obviously part of the slowdown is the fact that it's post the World Cup, and there is no doubt that the World Cup did boost sales from May," said Kevin Lings, Chief Economist at Stanlib, to Reuters. This easing of sales has been anticipated for several weeks in large part due to the deflation of the post World Cup sales bubble.
In other data released by Stats SA, it was seen that retail sales grew by 6.7 percent in the three months to August, compared with the same period a year ago, also at constant prices.

In the manufacturing sector the atmosphere is equally glum as factory output only rose by 5.3%, a much steeper decline than anticipated when compared with the same period last year. During the month of August production fell 3.6%, a large part of the dip being attributed to the strike in the automotive sector.

Pick n Pay are having a tough week as they juggle local and foreign situations. In Australia the outlook is still uncertain with regards to the proposed sale of their Australian based Franklins business to Metcash. On Monday, Pick n Pay provided an update of their dealings down under which included an alternative exit strategy. The latter was partly due to the complications the South African retailer was having with the Australian Competition and Consumer Commission (ACCC). “The alternative exit strategy is the sale of the Franklins stores and other strategic assets individually or in groups via a tender process.” On the domestic front they’re facing some 27000 employees who are preparing to go on an extended strike after their wage demands were not met.

   BRAND NEW
Launch of Wilde 100% Fruit Juice - Get Wilde 100%.
Impress your family and friends by stocking up on this NEW colourful range of 100% fruit juice. Not only will it add variety to your list of beverage ideas but it is healthy too. Wilde 100% fruit juice is made in South Africa using real fruit – no additional sugar or preservatives.
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ST Pie - NEW! Prego Pie
“St. Pie is proud to present its new pie offering! The Prego Pie has received phenomenal reviews and sales just keeps climbing! Filled with traditional Prego Flavours and wrapped in our premium quality pastry, it is innovation at its best. At Saint Pie, we really mean it when we say...We live pies for you!”
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BRAND NEW ORGANIC PIZZAS FROM EAT SMART ORGANICS
Launching through selected Checkers Stores from Wednesday 6th October 2010. Smart Pizzas are par-baked, delivered fresh and have a 3 day shelf life. Ready to ‘HEAT N EAT’ in 8 mins. Organic, convenient and delicious.
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Canderel ® Vanilla
Canderel ® Vanilla, is a delicious vanilla-flavoured low-calorie sweetener made with Madagascan vanilla grains.
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Sally Williams
Milk Chocolate Coated Turkish Delight
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Sensodyne brushes up sensitive toothpaste market with new release
Sensodyne’s new Total Care - a great tasting minty toothpaste that not only relieves tooth sensitivity, but also cleans and strengthens teeth, removes plaque, protects against decay and maintains healthy gums – was launched in response to increased consumer demand for effective solutions to oral sensitivity.
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Wednesday, October 13, 2010

What impact could Walmart have on the South African retail industry?

Two weeks on from Walmart’s announcement that they’d put in an offer for Massmart and local media is still abuzz with speculation, forecasts, and warnings. The latter being the dominant topic, and it’s coming from all angles.

Analysts considering the impact of Walmart’s entry into the local market have warned that local retailers may have to up their game to remain competitive in the new market. Walmart’s sheer size gives it an enormous advantage “[they] can source products cheaper and pass (savings) onto consumers.” President and CEO of the retailer, Doug McMillon, said one the company’s top priorities is saving people money and establishing themselves on the African continent was a great opportunity to deliver on that mission.

Retailers aren’t the only ones who could be in for a shock; local producers also fear the effects of the giant retailers presence in the local market. Whilst consumers can look forward to cheaper goods, local producers might face a slump in business as Walmart could potentially source cheaper products from abroad. Some producers have taken solace in the hope that the retailer will still have to source fresh produce locally.

There is also one warning headed in the opposite direction, “Walmart can’t bulldoze unions.” Cosatu have threatened to call on the government to supervise and monitor the planned purchase. With near on 2 million members in affiliated unions in major economic sectors, Cosatu have the power to make things very unpleasant for the American retailer.

Whether consumer, retailer, supplier, or producer, Walmart’s entry into the African market is going to affect us all, question is: how?


Kraft / Cadbury SA scoop four prestigious Loerie Awards
At the 2010 Loerie Awards held at the Good Hope Centre in Cape Town this weekend (1 – 3 October), Kraft / Cadbury SA walked off with an impressive 4 Loerie Awards. With 19 ‘finalist’ nominations in this year’s Awards, Kraft / Cadbury SA were one of the most nominated companies in the country.
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Cadbury P.S. ‘tells it like it is’ with a striking new look
Cadbury P.S., one of South Africa’s favourite chocolate brands, has introduced a striking new pack design with a colourful attitude that tells it like it is.
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WIN a loaf of Sasko Bread every day, for a year!
Buy a loaf of SASKO Premium White or SASKO Premium Brown bread in the months of January, June or October and you could win a loaf of bread, every day, for 365 days.
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Tropika Island of Treasure 3 Fuses Reality TV Stardom and R1 million
Clover's Tropika, South Africa’s smoothest fruit juice and dairy combination, launched 'Tropika Island of Treasure 3' at a media launch in Johannesburg, following its previous two successful seasons in 2008 and 2009.
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Soweto Canoeists and Foodcorp gear up for grueling canoe marathon
Foodcorp is very proud to share the news that they are sponsoring Soweto Canoe and Recreation Club (SCARC) with Yum Yum branded canoeing kits. We are very proud of our involvement with these 11 Soweto canoeists, a development success story that has produced some of the best South African canoeing talent over the past seven years.
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Ceres Super Fruit Recipes
Super Fruit is the super thirst quenching nectar that South Africans know and loves. Now you can use that same nectar to make delicious treats with these recipes.
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Carotino Palm Fruit Oil
Carotino Palm Fruit Oil is for everyone who is interested in maintaining good health for their family. It is excellent for cooking and in salad dressings.
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Monday, October 04, 2010

Wal-Mart enter Africa though Massmart offer


This week saw the realization of what many have speculated for quite some time, Walmart finally chose their African bride. The American retail giant made a $3.4 billion offer for South Africa’s Massmart and, the companies have allowed one another mutual periods of exclusivity. If successful, Walmart would acquire Massmart’s 290 stores in 13 countries. Whilst this pales in comparison to Shoprite’s 1166 stores in 16 countries, it still outweighs Pick n Pay’s portfolio of 90 stores outside of South Africa. That being said, Walmart had a lot more to consider when making the offer than just sheer size.

“Massmart is the closest fit to Wal-Mart’s retail style. Shoprite and Pick n Pay are mostly food retailers, while Massmart sales comprise 53% food and liquor, 42% general merchandise and 13% home improvement. The company’s stores range from Game, the closest thing SA has to a US-style discounter, to Builders Warehouse and Makro.”

Amongst those opposed to the deal is Saccawu who hope to contact “[the]Minister of Economic Development Ebrahim Patel as well as members of civil society and the international trade union movement to help it ensure that there would be no erosion of workers' rights as a result of Wal-Mart acquiring Massmart for R30 billion, as proposed on Monday.”

Pick n Pay also made headlines recently when 27000 Saccawu members went on strike last week Friday as a result of deadlock over ongoing wage negotiations. Furthermore, they also garnered attention when Australian regulators became concerned with Pick n Pay’s planned sale of its 85 Franklin’s stores. The sale would give the retailer the impetus it’s looking for to “upgrade and revamp its distribution network in its South African business” to better compete with rivals.

It’s clear that the battle for the retail crown has only just begun and shows no signs of slowing and, with all the main players so closely matched it won’t be one to be missed.

  BRAND NEW
Clover 1% Low Fat Milk
Clover’s new low fat milk has only 1% fat, which makes it the ideal choice if you want a lower-kilojoule alternative without compromising on the same great taste compared to regular 2& low fat milk. It is also a source of calcium and protein and is high in vitamins b2 & b12.
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Clover Cheese Family Pack
Recent research into the cheese category indicated consumers preference for a bigger family size cheese portion. Clover has therefore embarked on launching a 450g family pack that is ideal for household consumption.
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PHILIPS - Steam Station GC6405
From clothing to curtains, the ergonomically designed steam station makes crease removal (even in those tricky areas) worth getting steamy for.
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NIVEA Hand Intensive Nourishing Cream
NIVEA Hand Intensive Nourishing Cream is a rich, quickly absorbed cream, with a blend of Macadamia Nut Oil and Vitamins which strengthen the skin's protective barrier, whilst keeping hands and cuticles smooth and soft.
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Huggies Little Swimmers
Summer is here and with it comes long days of fun outside with the family. Children of all ages love water – whether they are at the beach, swimming or running around in the sprinkler.
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