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SA flavour association on use of food flavourants in e-cigs

SA flavour association on use of food flavourants in e-cigs

In reaction to several deaths in the US from an unknown lung illness apparently linked to vaping/e-cigarettes, here is a statement from SAAFFI (SA Association of the Flavour & Fragrance Industry) with regard to the use of food flavourings in these devices.

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Shoprite’s plans for growth in face of tough, tight times

Shoprite’s plans for growth in face of tough, tight times

In an effort to gear up growth, Shoprite wants to move to smaller stores, closer to where its customers are. 

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The private label revolution in SA

The private label revolution in SA

The sale of private label products in South Africa has been on an upward trend since 2016, with spend on this segment growing at almost twice the pace of named brands. And this rise is being fueled by increased innovation and differentiation by retailers and suppliers. 

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Leading retailers agree to standardise pack recycling info

Leading retailers agree to standardise pack recycling info

From August 27, Food Lovers Market, Pick n Pay, Spar, Shoprite, Clicks and Woolworths will be rolling out the same recycling labels on their packaging, dropping a confusing previous system.

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Nielsen: The impact of double-edged demand in SA

Nielsen: The impact of double-edged demand in SA

The South African consumer landscape is currently fragmented and polarised, characterised by what Nielsen terms “the double-edged demand of the South African consumer”.

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SA blueberry production – and employment – skyrockets to all-time high

SA blueberry production – and employment – skyrockets to all-time high

Blueberry production in South Africa is set to reach 17,000 tons this year – an all-time high. SA produced 11,300 tons in 2018. About 70% of the blueberries produced in the country are exported.

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Shattering the myth of high unemployment: why 29% closer to 12%

Shattering the myth of high unemployment: why 29% closer to 12%

High unemployment is often quoted as the reason for much of SA’s current mood of doom and gloom. But, look beneath the official statistics and you will see a vibrant economy built by tens of thousands of small business operators and entrepreneurs, many in the food business.

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Barentz strengthens South Africa footprint with SK Chemtrade Services JV

Barentz strengthens South Africa footprint with SK Chemtrade Services JV

Global ingredients distribution company, Barentz International, is expanding in South Africa with a joint venture (JV) with SK Chemtrade Services, a supplier of raw materials to the life sciences industries the region.

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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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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

Latest Food Science, Safety & Ingredients: More

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