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Willowton Oil’s shocking KZN pollution disaster

Willowton Oil’s shocking KZN pollution disaster

An estimated 1.6 million litres of fatty oils and caustic soda poured out of Willowton Oil into the Msundusi River last Tuesday, leaving a trail of destruction.

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The danger signals in SA’s discount deluge

The danger signals in SA’s discount deluge

Consumers are being “trained” to buy only on promotion – and it can backfire on brands, warns Nielsen’s Kerith Botha.

South Africa is a nation of promotion-obsessed shoppers, according to a new Nielsen report, The Price of Promoting. It shows that 75% of the adult population say they know the prices of the grocery items they buy and notice changes in price. That’s 6% higher than in 2017.

In addition, 31% actively search for promotions and 16% go so far as changing stores if a brand they prefer is on offer elsewhere.

Nielsen Connect South Africa MD Kerith Botha says this stems from the fact that despite ongoing, relatively low inflation rates (4.4% in Q1, 2019) and stable consumer confidence. fixed expenses, like the spiralling price of petrol, taxes and utilities, have placed a massive strain on essential living costs.

“This has led to consumers seeking financial relief and the first casualty of their desire to ease their financial strain is discretionary spending, which has taken a toll on their grocery baskets. Unfortunately, this ‘money’s too tight to mention’ scenario has also seen South African shoppers prone to severe cases of Promo FOMO. The danger with this, is that for manufacturers and retailers alike, promotions can be a double edged sword.

“They bring consumers to the store and result in temporary pick-up in brand sales/ volumes but the long-term impact of promotions is more severe and can lead to loss of brand and store equity.” says Botha.

The intensity of discounting within the local retail market becomes apparent when one considers that, in 2018, 30% of the total volume of products in South Africa were sold at a discounted price. This has increased by 3% since 2017.

In addition, 22% of South Africans say that they change stores based on the best discounts on offer, while 34% say they do not change stores but actively search for discounts in store. Sixteen percent of consumers, versus 22% in 2017, also only buy products at a discount if they already like the brand.

Across the price and promotion studies performed in South Africa during 2017 and 2018, the average frequency of promotion increased by 3%. A significant relationship has also been found where more frequent promotions lead to higher consumer sensitivity to regular prices – which means in effect, cosnumers are being trained to buy on promotion.

But do promotions actually work? Says Botha: “Based on Nielsen global benchmarks, a promotion is said to break even if its ‘efficiency’ is 50% or greater. Out of the 200+ items analysed in South Africa for this report, only 33% surpassed the 50% efficiency threshold, which means that a massive 67% of promotions don’t break even.”

Botha also cautions that not all items see high uplifts when promoted, and pricing strategies need to be tailored to ensure the right categories are positioned at the right price. “Products need to be treated individually, as consumers display different sensitivities to everyday price increases and promotions on different items.“

This has created a complex environment for manufacturers and retailers, and underlines the need for key insights to understand South Africa’s preoccupation with promotions, to help create efficient promotion plans using effective pricing strategies,” says Botha.

Source: www.nielsen.com

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Kauai launches into Asia and Europe

Kauai launches into Asia and Europe

Real Foods Group, which houses the popular healthy restaurant franchise Kauai, has announced that it’s rapidly extending its global footprint.

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Clover’s R4.8bn deal gets Competition Commission nod

Clover’s R4.8bn deal gets Competition Commission nod

The Competition Commission has approved, with conditions, the R4.8bn sale of branded food-bev group, Clover Industries, to a consortium led by Tel Aviv-based Central Bottling Company.

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PepsiCo offers to buy Pioneer Foods in mega-billion deal

PepsiCo offers to buy Pioneer Foods in mega-billion deal

In a vote of confidence about SA’s long-term prospects, New York-based food and beverages giant, PepsiCo, has made an offer to buy Pioneer Food Group, which makes Sasko breads and Ceres juices, in a deal worth about R25.4bn.

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Gourmet Grubb opens SA’s first all-insect restaurant today

Gourmet Grubb opens SA’s first all-insect restaurant today

South Africa’s first all-insect restaurant is open for business – and the bugs dishes are, reportedly, delicious!

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Libstar launches world-class par-bake facility

Libstar launches world-class par-bake facility

Amaro Foods, a baked goods company in the Libstar stable, has upped its game with the commissioning of a new par-bake facility within its factory in Epping, Cape Town, and the first of its kind in South Africa.

This strategic development, says Libstar, is in line with global market trends where artisanal baking products are part of the daily food culture.

The facility now produces a range of partially-baked goods which are shipped to Woolworths stores around the country to complete the baking process.

The par-bake facility was launched in May 2019 and is one of 42 manufacturing plants owned by Libstar.

Spencer Sonn, MD of Woolworths Food; Tony Amaro, CEO of Amaro Food and Andries van Rensburg, CEO of Libstar.
Spencer Sonn, MD of Woolworths Food; Tony Amaro, CEO of Amaro Food and Andries van Rensburg, CEO of Libstar.

Tony Amaro, CEO of Amaro Foods, says, “It is important to predict and quickly adapt to consumer trends, as well as utilise opportunities for new product development.

“Consumers looking for artisanal products will now be able to find these in their regular shops and some fast food outlets.”

He says par-bake is an economical way of offering freshly baked goods without the need for full in-house baking facilities.

“The technique involves partially baking dough and then rapidly cooling it. The retailer then completes the process. It allows for the production of a range of fresh artisanal breads and rolls.

“One of the key benefits of par-bake is the reduction of waste. With fully baked goods, there is an expiration date which leads to waste and loss of income for retailers. However, par-bake allows retailers to better manage their stock and bake according to demand,” continues Amaro.

As well as reducing waste, the new facility also taps into the global demand for healthier food alternatives. “Par-bake uses fewer ingredients, which is a healthier alternative to mass produced products.”

Andries van Rensburg, CEO of Libstar, says, “Libstar has a strategy of supplying innovative and value-added products to our customers and consumers.

“We focus on the low-cost manufacture of quality, innovative and value-added products for discerning consumers. These consumers have proven to be more resilient in the ever-weakening economy.

“In today’s competitive environment, it remains key to anticipate the needs of consumers to build loyalty to Libstar’s brands at the point of purchase and consumption.

“We continue to leverage our long-standing relationships with customers in the retail, wholesale, industrial and export channels to produce innovative products in partnership with them.”

Source: Libstar

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Ostrich majors fight for merger

Ostrich majors fight for merger

SA’s ostrich industry, centred on Oudtshoorn, has gone from boom to near bust over the past 17 years. The two biggest producers, Klein Karoo International and Mosstrich, are arguing that they need to be allowed to merge so that the industry can survive.

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Black gold: truffle farming in SA

Black gold: truffle farming in SA

Money, so they say, doesn’t grow on trees. But it might just grow on their roots, if a new breed of optimistic truffle farmer is right. Who would have guessed that truffle farming is now a thing in SA!

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Danone brings protein-powered yoghurt to SA

Danone brings protein-powered yoghurt to SA

Danone has launched its DanPro brand locally, a high-protein yoghurt and drinking yoghurt range designed to fuel active lifestyles.

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Latest Trends Reports!

Millennials not eating tuna? It’s really not about the tin openers

Millennials not eating tuna? It’s really not about the tin openers
Is there anything baby boomers won’t accuse millennials of killing off? First it was napkins, then cereal, golf, out-of-town supermarkets, raw meat, hotels, chain restaurants and now, canned tuna.

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Functional Foods & Beverages: Key Trends 2019

Functional Foods & Beverages: Key Trends 2019
As brand owners, from the giants to the smallest of startups, have found to their cost, no matter how smart your company is we are all at the mercy of trends. The power to influence them is limited. Success comes from keeping an eye on the approaching waves, and if they’re right for your brand, […]

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US: Pasture-raised eggs soar in popularity

US: Pasture-raised eggs soar in popularity
The bar is rising for what’s considered a happy chicken, sparking the hottest trend in the US market: the pasture-raised egg.

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The era of the mindful consumer

The era of the mindful consumer
The Waitrose & Partners Food & Drink Report 2018-19 shows how mindfulness of well-being and environment are having a huge influence on the way we shop and eat today.

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Mintel announces three global food and drink trends for 2019

Mintel announces three global food and drink trends for 2019
Mintel, the world’s leading market intelligence agency, has announced three forward-looking trends which will lead the momentum of global food and drink innovation in 2019 and beyond. And you can download a FREE comprehensive report!

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Provenance powers success at premium prices

Provenance powers success at premium prices
Provenance, authenticity and artisanal processes are transforming mainstream food-bev categories. The idea of “provenance” – having a back-story anchored in heritage and trust and perhaps made in a traditional, artisanal way – is now entering the strategies of largest companies, according to 10 Key Trends in Food, Nutrition and Health 2019, the annual trend report […]

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Whole Foods’ Top 10 Food Trends for 2019

Whole Foods’ Top 10 Food Trends for 2019
Phil Lempert, known as ‘The SupermarketGuru’, is one of America’s leading food and consumer trend-watchers and analysts. Here’s his report on what trend-setting US retailer, Whole Foods – now owned by Amazon – predicts for the F&B development in 2019.

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Catering to ‘The Adventurous Consumer’ is key for 2019: Innova Market Insights

Catering to ‘The Adventurous Consumer’ is key for 2019: Innova Market Insights
Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019, asserts Innova in its latest report on trends for 2019.

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How technology, consumer habits, industry dynamics are changing the future of food

How technology, consumer habits, industry dynamics are changing the future of food
These days, everyone is talking about the future of food, and with good reason. With population growth, climate change and technological innovations, the landscape today isn’t the same as it was yesterday and it won’t be the same tomorrow.

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Why people in rich countries are eating more vegan food

Why people in rich countries are eating more vegan food
Interest in vegan food has been booming across the rich world. Celebrity claims of veganism are everywhere: Bill Clinton and Al Gore, Serena and Venus Williams, Lewis Hamilton, Mike Tyson, Beyoncé, take your pick….The Economist takes a look at this burgeoning trend.

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Latest Food Science, Safety & Ingredients

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