At Source markets not 'drying' up
Speciality food firm At Source Handmade Foods is raising the bar for dried fruit producers in SA, following its successful entry into Australia, the UK and the Middle East. It also recently launched its own consumer brand, Cecilia's World in South Africa.
Chief executive and owner Handri Conradie says exports to these regions account for 25% of At Source's revenue, from about 5% three years ago.
The company, based at Koelfontein in the Western Cape, is one of the three largest processors, packers and distributors of dried tree fruit in SA. It supplies international retailers including Marks & Spencer in the UK and Spinneys in the United Arab Emirates.
"We've needed to increase our capacity to meet growing demand and have introduced some of the highest levels of quality control in the industry as international retailers insist on this," Conradie said.
At Source, which buys fruit from around the country, embarked on a capital expenditure programme two years ago after receiving funds from the Industrial Development Corporation. It expanded its factory size from 4,000m² to 6,600m²
"The business has new machinery with automated optical sorting technology used for dried fruit selection," Conradie said.
At Source, which was founded in 2002, processes about 1,200 tons of dried fruit and nuts a year after starting with just 200 tons 11 years ago. Through its partnership with Australian food manufacturer and distributor Manassen Foods, At Source now has a sizeable retail footprint in that country, where fruit imports are increasing.
"The Australian consumer's taste for dried fruit is similar to a South African's palate, owing to the similar climate and fruits traditionally grown there," Conradie said. "However, the large affluent population means the Australian market is bigger than the South African top-end customer base.
"Droughts, high labour costs and the fact that fruit production has made way for wine production following a sustained wine boom over the past 20 years in Australia resulted in a supply shortage there, and helped us create a lucrative export market," he said.
Locally, the company supplies Pick n Pay and Woolworths with private label products.
At Source employs more than 400 people.
Source: Business Day via I-Net Bridge
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