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Dynamic Commodities

Remgro bags a slice of Dynamic Commodities

Diversified investment group, Remgro seems to be building an appetite for specialised food businesses – and it’s now snapped up a 30% stake in Dynamic Commodities, the Port Elizabeth-based producer and exporter of frozen fruit-based delicacies.

The deal — via Remgro’s growth capital subsidiary, Invenfin — comes hard on the heels of Invenfin securing a strategic stake in artisanal Paarl chocolatier, DV Chocolate, about three months ago.

Invenfin houses Remgro’s venture capital style interests, but has a distinct food flavour, with influential stakes in rooibos-based iced tea brand developer BOS and Le Bonbon, a confectioner.

Invenfin executive director Stuart Gast said the company’s decision to invest in Dynamic was driven by the growth potential of the global frozen desserts market. He said that 95% of Dynamic’s revenue was generated in export markets.

Gast estimated the global market for ice cream at $50bn, with the frozen fruit market also showing strong growth.

Market watchers said developments in Invenfin were unlikely to meaningfully affect Remgro’s value or profitability in the short to medium term. Remgro’s main food investments are in RCL Foods and consumer brands giant Unilever SA. Whether Invenfin’s food interests are being assembled with a view to being incorporated into RCL Foods at a later stage is unclear.

At this point Invenfin’s strategy is to invest with a significant minority stake “so that the owners remain in control and retain their passion and leadership”.

Invenfin has identified technology and food and beverages as priority investment areas, especially businesses that have market traction and are trending globally.

About Dynamic Commodities

Over the past 20 years, Dynamic Commodities, based in Coega outside Port Elizabeth, has become a leading exporter of an innovative, value-added range of frozen fruit products, including fruit sorbets and various cut frozen fruits, to the USA, Canada, Japan, South Korea, various European countries and Australia.

The company has won numerous awards at global food shows for its innovations.

One of Dynamic Commodities’ unique products is its fruit sorbet in a fruit shell, which generates significant export revenue and sells in the USA under the Island Way brand.

All products are produced from locally sourced fruit at the company’s state-of-the-art 9 600m² production facility in the Coega IDZ. Other Dynamic Commodities offerings include frozen fresh fruit segments.

Dynamic Commodities2Dynamic Commodities CEO, Adrian Vardy (right), who owns and manages the company along with his partner Manie Maritz, MD and founder (left), describes their business as “small – but we take pride in competing with the biggest companies in our international markets”.

Dynamic Commodities’ emphasis on frozen fruit makes it a major player in the Eastern Cape’s agriculture industry. “We buy over 10 million kilograms of fruit per year from over sixty local farmers and pack-houses.

“There is no doubt that the quality of fruit from the Eastern and Western Cape plays an integral role in our reputation for high quality products which we have in our international markets,” says Vardy.

“As a value-adding agri-processor, we work closely with the farming community, and in this way, Dynamic Commodities contributes to the stability and growth of the Eastern Cape’s farming sector.

Depending on seasonality, Dynamic Commodities employs between 900 and 1 200 people at its Coega factory, all from neighbouring communities. The finished product is exported directly from the nearby deep-water port of Ngqura.

“In the sorbet-filled fruit shells, the combination of quality fruit and homogenisation technology gives the product superior smoothness along with superb visual appeal,” says Judy Sendzul, head of Invenfin Foods.

“These sorbets are available as dairy and non-dairy versions and contain no preservatives or colourants, with a shelf life of up to 36 months – all in line with better-for-you trends internationally.”

Source: Press release, BDLive.co.za

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