Building Brands

SHOPTALK


Significant investments made by some of South Africa's largest brand owners are beginning to come to fruition. Pioneer foods have invested heavily in acquisitions, as have Tiger Brands, and they have both posted very strong half year results. Tiger will also invest a further R1.8 billion over the next two years to increase capacity and efficiencies.
For Rainbow Chickens I believe the best is yet to come - they have focused on developing value added products and ready to eat meals while also driving forward their food services sector. This is an intelligent shift away from a volatile commodity based business model, to a more stable, higher margin consumer food producer. The question is how big is the pot of gold that Rainbow holds?

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

Lamberti successor announced
On Wednesday last week Massmart announced that Grant Pattison will succeed Mark Lamberti as head of the group when he retires next year. Lamberti will become non-executive chairman of the group when he steps down from his CEO role, which he has held for the past 19 years.
Read more.

Pick 'n Pay committed to Franklins
Pick 'n Pay's chairman Raymond Ackerman on Thursday announced that they will remain committed to their Franklins stores in Australia. This came after reports earlier last week that Pick 'n Pay were soon to decide the future of the unprofitable store chain that has not made a profit since its acquisition in 2002.

Staff also benefit as Pioneer increases revenue, earnings
Pioneer Foods have increased revenue 13% to R4.7bn for the six months to March. It benefited from improved sales volumes both in existing operations and acquisitions. The group has increased its holding in beverages, eggs, cereal products and baking in the past two years.
Read more.

Tiger to up capacity with bold R1.8 billion
Tiger Brands has reported that it plans to spend an estimated R1.8 billion over the next two to three years on increasing capacity and improving efficiency. This comes after Tiger reported a 9 percent increase in turnover to R8 billion and a 25 percent increase in headline earnings a share to R5.262 in the six months to March.
Read more.

Sea Harvest plant shuts as workers strike
The Tiger Brands fishing plant in Saldanha Bay has reportedly closed after 1 800 employees went on strike last Monday. Union and company officials have confirmed that workers are striking in protest of job cuts, affecting 52 of its staff.
Read more.

Rainbow soars to R400 million
Rainbow Chicken, the country's largest chicken producer, on Wednesday reported a 89.7 % rise in headline earnings to R400 million for the year to March as a favourable economic climate, an improved product mix and investments in ready-to-eat meals paid off.
Read more.

GLOBAL NEWS

Wal-Mart to exit South Korea
In a surprise move, Wal-Mart has announced that Shinsegae has agreed to purchase the group's South Korean retail business for USD882 million. Shinsegae is South Korea's leading retailer with 79 E-mart hypermarkets in the country.
Read more.

Boots to expand Private Label in US
According to reports in the UK press, Boots is planning to expand sales of its private label lines to thousands of stores across the USA. The retailer has been testing lines such as No 7 cosmetics and Botanics beauty products in selected CVS and Target stores in the US. The feedback shows that these products are extremely popular and plans are being made to stock the products on a nationwide basis.
(Planet Retail)

FEATURED BRAND

GlaxoSmithKline
GlaxoSmithKline (GSK), known for popular brands such as Aquafresh, Borstol, Grand-pa and Med-Lemon, are a global healthcare group engaged in the creation, discovery, development, manufacture and marketing of pharmaceutical and consumer health-related products.
Read more.

BRAND NEW

NEW!Exciting innovations from All Gold Tomato Paste All Gold has launched two exciting new product innovations for Tomato Paste that are set to drive category growth in terms of meeting consumer needs and the requirements of the smaller trader - a Dispenser Value Pack for All Gold No-Waste Tomato Paste sachets and a convenient strip pack. Read more.

NEW!Sipahh and McDonald's encourage healthier eating In a worldwide trend towards healthier eating and good energy, McDonald's and Sipahh have announced their partnership in an attempt to encourage children to replace fizzy drinks with milk and increase healthier diet choices. Read more.

NEW!Cut down the calories with Bio-Sweet Bio-Sweet sugar replacer, developed by Skyros Health Products, is a sure way to cut down on calories and decrease the amount of sugar in a diet. The easy-to-use containers and shakers make it suitable as additives to drinks and cereals as well as cooking and baking. Bio-sweet is available as tablets, sachets and in powder form and does not contain aspartame. Read more.

BRAND ACTIVITY

Rhodes Jam Winner takes R20 000 for school fees! Naseema Gora of Gauteng is the winner of R20 000 towards school fees, compliments of Rhodes. The Rhodes Back to School competition was run on Rhodes Jams in selected Shoprite/Checkers/Pick 'n Pay stores in KZN, Gauteng and Free State in conjunction with Rhodes earlier this year. Congratulations Naseema! Read more.

Spongebob collectables now available in Simba packs Spongebob Squarepants and his friends can now be found in certain Simba packs like Simba 30g, Fritos 50g, Ghost pops 30g, Niknaks 40g and Simba Puffs 30g. These new orbitz are the 'new age' marbles with 60 Orbitz and 6 launches to be collected. Read more.

MGD's Big Yellow Couch creates Buzz at premium events It's big, it's yellow and it's a bold brand statement. The Miller Genuine Draft (MGD) Big Yellow Couch is quite literally, a big yellow couch. The Big Yellow Couch rewrites the rules of lounging and underwrites the "premiumness" of MGD as a tactical, on premise tool. It's highly visible and travels complete with its own red carpet, lighting rig and MGD in a branded fridge. Read more.

Ciro to exhibit improved services at Hostex
Ciro Alliances will be amongst the big names in the beverage industry to exhibit its latest products and services at Hostex 2006, taking place from the 31st May to the 2nd at the CTICC. Ciro Alliances focuses on improved service levels, a basket of products and solutions and has one of the widest varieties of coffee solutions for all occasions.
Read more.

WINE, BEER & SPIRITS

Fleur du Cap takes gold in London Fleur du Cap has shown its mettle at the prestigious 2006 International Wine Challenge in London - the world's largest wine competition - by clinching a gold medal with its Unfiltered Semillon 2004. Read more.

Leading winemakers show their auction wines in CT
Discover the exceptional wines South Africa's leading winemakers will be offering at the 21st Nedbank Cape Winemakers Guild Auction by joining them for an informal tasting at the Nedbank CWG Auction Showcase on Thursday 17 August at The Rotunda in Camps Bay.
Read more.

CT to see 4th year of Premier Wine Festival
RMB WineX Cape Town, now in its fourth consecutive year, will once again be held at the Cape Town International Convention Centre in late August and early September. WineX offers a comprehensive showcase of over 1 200 wines per night from more than 200 of the country's top wineries.
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.

B-LOONY Balloons reflect good times from childhood onwards, with birthdays, parties and fun events. Read more.

Fantus Technologies Fantus Technologies' focus is on working with organizations in their path to excellence. Read more.

RETAIL SUPPORT

Exceptional results for SAP Africa's business partners SAP Africa's business partners in the corporate and small and medium enterprise (SME) sectors achieved exceptional results during 2005, contributing to the global solutions giant's 62% peer group market share internationally, and its 71% peer group market share in Europe, the Middle East and Africa. Read more.

ProScan appointed distributor for DRS rugged pen tablets ProScan Systems have extended its hardware range to include the DRS family of rugged pen tablets. DRS Computers is a leading manufacturer of rugged tablet computers and docking systems for mobile users operating in harsh environments in the transportation, distribution, military, public safety, utilities, emergency medical services, field service and manufacturing industries. Read more.

Get more with moving media! You won't find moving media flying overhead, you'll find it zipping by at streetlevel on virtually every moving thing with wheels - that's right - cars, busses, trains, trucks, taxis etc. Synchron offer a few useful tips on branding your vehicle. Read more.

FAST MOVERS

SAB Miller appoint new company secretary
On Friday it was announced that John Davidson will replace Andrew Tonkinson as company secretary. Davidson is currently a senior corporate partner at Lovells, a London-based international law firm. The changeover is expected to take place during August this year.

FEATURED EVENTS

Africa's Big 7 Middle East food companies use expo to target African Markets Africa's Big 7 trade expo, to be held in Johannesburg from 23 to 25 July, is increasingly drawing international companies eager to do business with the continent. This year there has been a surge of interest from the Middle East and so far, there have been confirmed bookings from companies in Yemen, Saudi Arabia and Dubai. Read more.

EVENTS

Hostex Cape 2006
31 May - 2 June 2006 - CTICC
See the "Tiger Brands Out of Home Solutions SA Chefs Village" coming back with a bang.
Read more.

Kemptek co-sponsor PIFSA seminar
1-3 June 2006 - Johannesburg
PIFSA are hosting a seminar highlighting the changes within the industry and the expectations from the market place.
Read more.

Third Annual Wacky Wine Weekend
2-4 June 2006 - Robertson Wine Valley
Fancy a fun-filled weekend in the Cape Winelands? Come and enjoy award-winning wines and warm hospitality in the Robertson Wine Valley.
Read more.

Amasa's June meeting
7 June 2006 - Sandown
Exploring the Future of Media Research in SA.
Read more.

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.

Crisis Management and Communications Planning
23-24 June 2006 - Johannesburg
A two-day training course, which will convey the importance of preparing a Crisis Management strategy in advance of any crisis.
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.

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.

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.

THE FAST MOVING FACT

30 million bags were lost by airlines globally in 2005, of which 250,000 were never returned to their owners.
(Time Magazine)

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

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.
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The strong get stronger

The big South African brand owners have been on strong acquisition and investment campaigns over the past two years, and this is a good indication that these businesses believe the strong retail sales growth has long term sustainability. While our first article mentions a slowdown is retail sales growth, if you read the full article you will see that in most opinions a continued growth period can be expected. This period of sustained growth is sure to change the landscape of the South African retail industry. Will the strong get stronger?

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

Retail sales slow in January
Statistics SA said on Wednesday that real retail sales growth in January had settled to 5.6 percent year on year, confirming the trend indicated by Tuesday's AC Nielsen data. December sales, stripping out inflation, had increased by a revised 8.5 percent year on year.
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Tiger Brands' two sweet acquisitions
Last week saw Tiger Brands in action when they acquired both Cadbury Schweppes's Bromor Foods, as well as Nestlé's South African sugar unit. Bromor Foods own brands such as Oros, Energade, Hall's, Monis and Roses. It was also reported that Tiger is reviewing its fishing interests, which have been underperforming, but is investing in food, pharmaceuticals and homecare, where it expects substantial growth.

Premier Foods to consider a listing after success of turnaround strategy
Premier Foods will reportedly consider a listing once its turnaround strategy has yielded sustainable results. Premier's turnaround strategy has focused on township markets, where it has seen an increase in sales as it has made products more available.
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Nestlé's R300 mil upgrade plans
Nestlé South Africa is set to spend R300 million on upgrading and expanding its facilities to improve its efficiency and profitability. Nestlé will also establish a presence in Angola through importing, distributing and using third-party facilities for manufacturing.
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Game Worcester open to huge crowds
The town of Worcester in the Western Cape came alive on March 23 when the 66th Game Store opened its doors, bringing the unique pink Game flavour to the town.
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GLOBAL NEWS

Sainsbury back at number two
Sainsbury has regained its position as the UK's second-largest supermarket chain from Wal-Mart Stores' Asda chain, with Tesco in at number one.

Asda launch pilot Essentials store
Friday 31st March has witnessed the opening of the first pilot Asda Essentials store, the first take on a discount concept opened by the big four grocers in the UK. The outlet - described as a convenient store by Asda is located in the bustling Midlands town of Northampton - Planet Retail.

South African Consumer Confidence

Consumer confidence at a record high
According to First National Bank, consumer confidence in South Africa in the first quarter of the year was at its highest level ever in the 24-year existence of the composite consumer confidence index (CCI).
Full article: CLICK HERE.

ACNielsen show consumers lack willpower
According to LifeChoices, a 21-country qualitative study of middle class working women conducted by ACNielsen, consumers know all the good eating messages, and are motivated to implement them, but seem to lack the ability to consistently make slightly lower calorie choices in out of home consumption.
Full article: CLICK HERE.

Local Investment Company Acquires Canderel's SA Operation
Local strategic investment company, Fore Good Investments has announced the successful acquisition of Merisant SA (Pty) Ltd., formerly a wholly owned company of Merisant International. Internationally Merisant markets and sells low calorie sweeteners in over 85 countries. Its brands include Canderel, Equal, NutraSweet & Sucaryl.
Full article: CLICK HERE.

Tereos to become world's 2nd largest sugar processor
Tereos, a European sugar co-operative, has announced that it may increase its annual sugar output by more than 70 percent should it win a bid to take over Illovo Sugar. The acquisition would make Tereos the world's second-largest sugar cane processor.
Full article: CLICK HERE.

Dion stores equips disadvantaged school children
More than 2700 children from two schools in Diepsloot and Tembisa are now well equipped for the school year thanks to a Dion Stores initiative in which all of the schools' learners from grades 1-7 were presented with backpacks filled with stationery during March.
Full article: CLICK HERE.

GLOBAL NEWS

Supermarkets strangle UK independents
George Monbiot from the Mail and Guardian explores The United Kingdom's Office of Fair Trading (OFT) having launched an inquiry into the behaviour of the big grocery chains.
Full article: CLICK HERE.

Tesco to launch mobile content portal
Tesco is preparing to launch a mobile content portal which will tie in closely with the retailer's Clubcard loyalty programme and could see points earned through shopping in-store used for the purchase of mobile content. The company is currently searching for a third-party supplier to develop the portal, which will feature a full range of mobile content, reports Planet Retail.

The value of promotions

Recently I bought two promotional razor packs from Schick containing 6 blades and a razor for R59 each. I was obviously thrilled about a great deal on a great product, but was left asking what the impact would be further down the line?
What is the true value of a promotion? For the retailer, they get to promote their super low prices (often at the manufacturer's expense). For the manufacturer, he has a short term boost in turnover and may gain a significant market share. The obvious winners however, are consumers who grab at the opportunity to save a buck. This all seems great, but what about the negative consequences after the promotion ends?
After purchasing my two promotional packs, I am effectively out of the razor market for about a year, as are many others consumers. This creates an erratic demand that is difficult and expensive for both retailers and manufacturers to manage. Wal-Mart doesn't do promotions - they say you get the best prices in their stores each and every day. It seems to work for them - is this perhaps the cheaper and easier way to retail?

I don't know. If you know, or have any thoughts on the matter, please feel free to e-mail me on craig@fastmoving.co.za.

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 Ackerman receives Lifetime Achievement Award
Pick 'n Pay Founder and Chairman, Raymond Ackerman, recently received the Lifetime Achievement Award for Consumerism from the Department of Trade and Industry. These awards acknowledge individuals and organisations that champion consumer protection and education. Ackerman received the award for individuals in recognition of his commitment to championing consumerism, and the significant contribution made to improve consumer welfare.

New chairman for Clover SA
John Bredin has been appointed Chairman of Clover SA as of March 2006. Bredin, who takes over from Dr Vos Grey, will also serve as vice chairman of Clover Industries Limited (CIL) and alternate director of Clover Danone Beverages Limited.
Full article: CLICK HERE.

SABMiller seal Topvar deal
Brewing giant SABMiller plc (SAB) have said that following receipt of approval from the Slovak Anti-Monopoly Office on March 13, it had acquired 48.4% of the Slovakian brewer Topvar. Under the terms of the agreement, the controlling shareholders will sell further shares to enable SABMiller to increase its interest in Topvar to at least 67% by the end of September 2006.
Full article: CLICK HERE.

Superbrands finalises council for 2006
Superbrands has finalised the independent Council for Superbrands South Africa 2006. After the tremendous success of the inaugural project in South Africa, which featured more than 80 of the strongest brands operating in South Africa, Superbrands South Africa Volume Two will tell the story of many of the brands who have been instrumental in forming the branding landscape in the nation.
Full article: CLICK HERE.

GLOBAL NEWS

Coke runs dry in Zimbabwe
For the first time in at least 40 years, supplies of Coca-Cola dried up on Wednesday last week in yet another sign of the crippling economic crisis in Zimbabwe.
Full article: CLICK HERE.

Wal-Mart to expand in China
The chief executive of Wal-Mart Asia, Joe Hatfield, has disclosed that the retailer plans to take on 150,000 people in China over the next five years, five times the number it currently employs in the country, as the company prepares for a major store expansion. This year the company plans to open 20 stores in China in both major metropolises and smaller cities - www.planetretail.net