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Africa's retail news resource for the industry! 4 Feb 2008
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Land of milk and money
This is becoming a bit repetitive... along with four braais a week and cold coffee far too often, we now have the weekly collusion/corruption story. We have had bread, and now we have a report of collusion on the price of milk. I had a quick check in Roget's Thesaurus and synonyms for collusion include “conspiracy, craft, deceit, double-cross, fraudulent artifice, racket, scam and scheme”, while Dictionary.com defines graft as “the acquisition of money, gain, or advantage by dishonest, unfair, or illegal means, esp. through the abuse of one's position or influence in politics, business, etc”. IOL did a survey in which they asked their readers: "Are you surprised at the current milk price-fixing allegations?" Of the 255 readers who responded, 76% (195) said No, 14% (36) said Yes, while 9% (24) did not care. (Is it safe to assume that the 24 are all employed by the dairies that will be facing the Competition Commission?). The vast majority were not surprised. The danger is that we will become so inured to being ripped off, that like the 9% above, we will end up not caring. Let's hope not, but in the meantime, how will we really interpret the answer to the question, “So you work in the milling/dairy sector [delete as appropriate]. You must be busy.” Only to get the response, “You bet – it's really hard graft, you know!”



Rod Baker, Content Manager

Headlines

Retail
Saving money and the environment
Both globally and locally, Kyocera Mita South Africa says they are taking their environmental commitments a step further, with the goal of becoming truly carbon-neutral.


Energy increases push up production costs
[Luyanda Makapela] Increases in the production price indices of petroleum and coal, have been identified as the major contributors to the overall costs incurred by factory owners in South Africa.

R350 million expansion plan for Eastgate
Liberty Life Properties recently announced a R350 million expansion programme at Johannesburg's Eastgate shopping centre. New restaurant and retail space will introduce a lifestyle component to the shopping experience and add 12 000m2 to the gross lettable area, taking the total area to 121 000 m2.


What's going on in our property market
Amid some negative speculation in the marketplace with regard to the current status of the residential property market, Pam Golding Properties' perspective, as expressed by Dr Andrew Golding, is as follows…


Interview with Tom Peters
Tom Peters, one of the world's leading business strategists, is consistently voted one strategist many business people would love to see again. Here he expounds on a range of issues – and his choice of favourite company may surprise you, by the way.


Peters to pay us a visit
Tom Peters, one of the world's leading business strategists, will appear live and in Johannesburg on March 12, 2008. The event is presented by Global Leaders and is entitled Excellence, Always! It will take place at the Gallagher Estate in Midrand.


Two out of five US retailers don't have a store
According to a recent report by the United States' Direct Marketing Association (DMA), entitled "Channel Integration and Benchmarks in the Retail Industry," to be successful, retailers need to merge and synchronize all channels in terms of consistent brand message, timing, creativity of promotions, loyalty programs, and fulfillment.

South Africa: A jobs blackout?
Production in most South African mines - which include some of the world's biggest producers of gold and platinum and are the backbone of the country's economy - has been brought to a halt by recurrent power outages, sparking concerns over possible job losses.


First official FIFA store to showcase 2010
The 2010 FIFA World Cup South Africa will be showcased to international buyers visiting the world's first official FIFA store, opened earlier this month at Singapore's Changi airport.

Olympic Water Cube destined for retail
Beijing - When the plans to build a new aquatics centre for the Beijing Olympics were formed, the architects had more than just the Games in mind - they envisioned a future for the venue beyond 2008.

Luxury brands can succeed in economic downturns
First, the story was that luxury was omnipotent and luxury consumers were immune. Even affluents were trading up, they said, and luxury could do no wrong. Now, the story is that luxury has lost its lustre and even the wealthiest are bailing out.

Prodder's back
After an absence of seven years, the Prodder Directory is back in print format and was launched on 29 November 2007. Covering more than 2000 NGOs and other development organisations, it also includes information about trends and developments in the South Africa NGO sector, highlights of the past year's SANGONeT NGO Portal stories and the main findings from the "State of ICTs in the South African NGO Sector" research project. In line with SANGONeT's core focus on the role of ICTs in support of the NGO sector, a key feature of the book is the directory section that covers only those organisations with their own websites. As a result, SANGONeT is using the book (offline medium) to raise awareness about NGOs´ online information resources. The cost of the book is R350.00 (VAT incl), plus postage. To order go to http://www.prodder.org.za or http://www.sangonet.org.za and for further information, e-mail: prodder@sangonet.org.za


Banking & Finance
Relief as repo remains at 11%
[Luyanda Makapela] Indebted South Africans can breathe easier for the next two months, as the repo rate remained stable at 11%.

No change to bank rate
Business Unity South Africa (BUSA) has welcomed the decision by the Reserve Bank to leave interest rates unchanged at this stage.

Facebook makes a friend on Wall Street
Daniel Bernard, general manager for Wall Street Journal Online, said the "SeenThis?" feature will be opt-in only, meaning it won't start up unless the viewer expressly asks it to, and users can opt out any time. SeenThis will allow readers to see which Journal stories are popular among that user's Facebook friends.

CPIX hikes to 8.6%
[Luyanda Makapela] South Africa's Consumer Price Index excluding mortgage rates (CPIX) has increased by 0.7 of a percentage point to 8.6% on year-on-year for December, according to Statistics South Africa (Stats SA) on Wednesday, 30 January 2008.


Brand news
Chairman to carry the flame
Organisers of the 2008 Beijing Olympic Torch Relay have selected Atul Gupta, chairman and MD at Sahara, a national supplier of ICT and digital lifestyle products, to participate in the South African leg of the event.


Lights to go out at PnP
Leading by example, one of South Africa's biggest food retailers has decided to cut its power consumption by 20%. Not only that, it is selling energy-efficient light bulbs at cost to consumers – to help you save!

eBay's strategic switch for sellers
[Jim Offner] Barely a week after eBay announced a change in leadership, the online auctioneer unveiled a major switch in strategy. The company plans to reduce by half the up-front fees it charges users to list their items on its platform. It will also offer its best seller incentives and raise its minimum selling standards.

St Georges Home gets a makeover
Celebrating their 40th year of care giving, St. Georges Home for Girls was ecstatic to receive two complete bathroom makeovers to a value of about R90 000 from ON-TAP Plumbing Supplies.


Beat the blackout blues – with a great cup of coffee!
Tired of your friends pulling a face every time you produce a watery filter coffee? Depressed by yet another blackout? Then it's time you see how simple it is to make a quality cup of filter coffee.


Retail chain launches EduPlant
How do we live comfortably and productively within the limits of our planet? How do we sustain life on Earth now for the benefit of our children and their children? Global bodies, governments, communities and individuals are currently asking themselves these vital questions. The annual Woolworths Trust EduPlant program recognises that our schools play a vital role in exploring the answers to these questions.

Germany's best rosé – and it's South African
Weinwirtschaft, the respected German trade magazine, has just published its annual Top 500 ‘Wines of The Year' – as voted by the German wine trade – and Delheim Pinotage Rosé 2007 came top in the rosé category, beating all other rosé wines sold in Germany during 2007.


JD Group sales down
The retailer says total sale of merchandise for the first four months of trading were 4.8% down on the corresponding period of the previous year.

SA one of Toyota's biggest markets worldwide
Global sales results for Toyota Motor Corporation rank South Africa firmly in the top ten in the manufacturer's major world markets.

Speech by Mr Danie de Wet, Chairman of KWV Limited - KWV Limited
Mr Danie de Wet, the Chairman of KWV Limited, addressed the media at a press conference at Laborie Wine Estate in the Cape on Thursday, 24 January 2008.


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Catering
Olympic feat for Kosher foods
Beijing and the Olympics are going Kosher.

Judging the superior taste
The International Taste & Quality Institute (iTQi) has announced its recent strategic partnership with the Greek, Swedish and Portuguese Chefs Associations. These agreements enable selected members of these three highly regarded organisations of professional chefs to actively participate in iTQi's annual tasting juries, including the Superior Taste Award 2008.


Consumer research
Interactive marketers unsure of tracking capabilities
In these days of sophisticated technology one would expect that keeping a track of performance of campaigns and so on would be relatively simple and marketers and others would have accurate figures at their finegrtips. Not so, apparently.

US marketers say email strongest performing media buy
Datran Media recently released the results of its second annual survey of over 2000 online marketing professionals in the United States, finding that 82% of the marketers surveyed indicated that they plan to increase their use of email marketing in 2008, and 55% of the respondents cite that they expect ROI from email to be higher than any other channel.

Carbonated drinks losing their fizz
A new report* by independent market analyst Datamonitor finds that consumers are having a greater number of soft-drink occasions, with consumption projected to increase through 2011, but at the expense of carbonated drinks.

Valentine's Day: just be there!
US survey finds consumers opt for quality time with loved ones over traditional gifts this Valentine's Day.

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Distribution
Namibia Breweries in negotiations on brandhouse
Namibia Breweries Ltd, Diageo Plc and Heineken International BV are engaged in negotiations relating to a restructuring of their existing joint venture in South Africa.


Franchising
Comair's Air Malawi take-over bid grounded
[Gregory Gondwe] The Malawi government has scuppered South African Comair's bid to take over Air Malawi.


Import/Export
Oppose EU's economic agreements - Oxfam
[Michael Appel] Addis Ababa – International humanitarian organisation Oxfam and Afro-flag Youth Vision have urged African governments to jointly oppose the European Union's (EU) proposed Economic Partnership Agreements (EPAs).

SA's electricity imports grew by over 15%
[Bathandwa Mbola] South Africa imported over 15% more electricity from other countries in 2007, than it had in 2006, according to figures released on Thursday, 31 January 2008.

Eskom shocks for the South African apparel industry
The load-shedding measures implemented by Eskom described as a national emergency by Cabinet members constitute a severe impediment for growth in South Africa's apparel sector.


Packaging
Things going even better with…
[ActivRetail] Petpak, a member of Nampak Rigid Plastics and a division of Nampak, Africa's largest packaging company, has expanded its Coke Bottler network, with the recent announcement that a new in-plant has been opened at Coca-Cola Fortune (CCF) in Polokwane, Limpopo.



Promotions
Moonstruck with music and moonbeams
On Saturday, 9 February, 567 CapeTalk's Moonstruck with BP Express will once again bring Capetonians together on Clifton 4th Beach for an evening of music and family fun – without alcohol, however.

May the cause be with you – don't miss this wine auction
Epilepsy South Africa, a non-profit organisation that aims to provide equal opportunities for people with epilepsy and other disabilities, will be hosting a glamorous wine auction on 19 March 2008, at the Arabella Quays (previously the Arabella Sheraton Grand Hotel) in Cape Town.


The show goes on!
Following its launch in 2006, and the subsequent show in 2007, Avusa Limited has announced the third edition of The Home Show, which will take place from 31 January - 3 February 2008 at the Sandton Convention Centre.


Safari Your Child Big School Survival Drive - Egg Marketing & Communications
[Charlotte Bradley] The first day of ‘Big School' can be a daunting experience. However, this year Grade One learners and their parents received a warm welcome, thanks to the Safari and Your Child Big School Survival Drive.



Regulatory
Staple foods on competition body's menu
[Nicola Mawson, Consumer Industries Correspondent] The Competition Commission goes after the price-fixers.

FOA chief arrives at AU Summit
Food and Agriculture Organisation (FAO) Director-General for the United Nations, Jacques Diouf, has arrived in Addis Ababa for a working visit during which he will also attend the 10th Ordinary Session of the Assembly of the African Union (AU) to be held this week.

How they fixed the milk price
[Zweli Mokgata] Hot on the heals of news that the South African public has been ripped off for years on the price of bread, comes the news that eight dairy companies are in the spotlight, accused of fixing the price of milk.

NCR hits errant credit providers
The practice of retaining borrowers' bankcards will no longer be tolerated in the credit industry.

DEAT to publish abalone diving regulations
This week the Department of Environmental Affairs and Tourism will publish regulations concerning abalone diving restrictions in a bid to protect wild resources.


Retail services
90 years young and still loving it - Hertz Rent a Car
For a global brand to reach 90 years of successful operation these days is a mighty feat, even more so in the volatile car rental market, which often sees companies crashing to anonymity. Great news then for Hertz Rent a Car, which is celebrating its 90th year of operation in 2008.



Security
The biggest security threat for 2008 and beyond: end users
Safeguarding organizations against insiders with malicious intent requires effectively enforcing data access policies and auditing user activity with sensitive and confidential data and systems. The stories that have surfaced about company insiders stealing sensitive data worth millions of dollars - if not billions - is a nonstop cycle.


Supply chain
SA farms' profitability up 24% in 2007
The profitability of South Africa's agricultural businesses rose by a significant 24% last year, mainly as a result of increased turnovers and improved management styles.

Textile firms reap fruits of working smarter
[David Christianson, KwaZulu-Natal Correspondent] The South African textile industry has long been assumed to be in terminal decline, but perhaps there is cause for some optimism.

Reports of cattle skin disease in Limpopo
[Gcina Ntsaluba] Cases of Lumpy Skin Disease (LSD) in cattle have been reported in Limpopo's Vhembe district.


Technology
New range of motherboards and graphic cards
Sahara Computers, a frontrunner within the domestic ICT channel, in conjunction with its internationally established technology vendor partner, Foxconn, has recently introduced its latest range of motherboards and graphics cards.


A pen with ears - and a brain
[Katherine Noyes] USA - At the Demo exhibition in Palm Desert, California, on Monday, Livescribe debuted its much-anticipated Pulse smartpen.

Amazon's shot at iTunes heard round the world
[Jim Offner] Amazon.com is taking its digital music store to the world - a necessary move if the online retailer hopes to compete with a digital giant like iTunes.

The essentials for business or pleasure
Sony Ericsson has announced the launch of the T270i and T280i, a stylish duo of affordably priced phones set to appeal to differing audiences.


Can healthy web site traffic save newspapers?
Raw numbers don't really tell whether newspapers are profiting from the uptick in visits to their sites, said Mike McGuire, vice president of research for the media industry at Gartner, in the United States. "The challenge is how papers can effectively monetize that. There is a concern that a lot of people expect ad-supported content to be free."

Africa's blogging revolutionaries
The world's poorest continent is, not surprisingly, also its least wired. However, Web use in Africa has exploded almost ninefold since 2000, experts say. By prying open the stranglehold that repressive regimes once held on the news, it has become, in the hands of ingenious Africans, a powerful tool for democratization and even disaster relief.

Using e-mail as storage: A cautionary tale
For some people, losing an e-mail account is akin to losing family photographs in a flood or fire. Even if the service is free, the offending company had better be prepared to apologize gracefully and profusely, said Ben Chestnut, cofounder and partner of MailChimp.


Training
Company tackles skills shortage head-on
Accsys, a national provider of human resource and payroll management software, has announced the introduction of the Accsys Payroll Internship Bursary Program.


UCT GSB stands alone
The University of Cape Town's Graduate School of Business (UCT GSB) full-time MBA programme has, for the fourth consecutive year, been ranked in the Financial Times of London's Global MBA Top 100, and remains the only business school in Africa in the FT MBA ranking.



Events to diarise
Meet the CEOs: Tony van Marken Finlay Events - Cape Town, 4 March
Tony van Marken is Executive Chairman of Vox Telecom Limited and he will talk on the topic Beyond The Summit: Your Business Everest.
 
 

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