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Africa's retail news resource for the industry! 15 Dec 2008
Retail, Associations, Banking & Finance, Brand news, Cold chain, CSI, Distribution, e-Commerce, Exhibitions, Franchising, Health & Safety, Hospitality, Import/Export, Informal Retailing, Instore, Logistics, Manufacturing, Merchandising, Packaging, Promotions, Refrigeration, Regulatory, Research, Retail services, Retailers, Security, Shopfitting, Supply chain, Technology, Training.

Like you, we have had a roller-coaster year, so we're taking the opportunity to take a bit of breather, but we'll be back again, raring to go in early January. In the meantime, we'll keep on bringing you any breaking news via our websites.

This is also a good time to thank you all for your great support throughout the year, and for the many compliments you have sent us (plus a brickbat or two, just to ensure we don't get swollen heads).

Take care over the festive season and to you all, a massive 'Thank You' from all of us for hanging out with us again this year - we promise lots of exciting new biz experiences next year.

Best wishes from all at Bizcommunity!

PS. First newsletter of 2009 is Monday 12 January!



Shan Radcliffe, Retail editor
retailnews@bizcommunity.com
Responses to this column welcomed in our new online editor's column archive.

Headlines

Retail
Going cheap
[Sasha Planting] Aggressive pricing and pre-Christmas markdowns are the ways that retailers are hoping to survive what is likely to be a tough Christmas period.

Retail trade sales drop
[Luyanda Makapela] Retail trade sales at constant price for the first 10 months of 2008 reflected a decrease of 2.2% compared to the same period in 2007.

Food price inflation on the wane
[Tamlyn Stewart] The rate of increase in food prices seems to be slowing as commodity prices fall worldwide.

Job growth edges higher amid gloom
[Mariam Isa and Nicola Mawson] Employment in SA's formal non-farm sector edged higher in the third quarter of the year, official data showed yesterday, but analysts warned the trend was likely to prove short-lived as growth in the economy slows further.

SA's quarterly growth hits 10 year low
[Michael Appel] South Africa's economy weakened considerably in the third quarter of 2008, recording the lowest quarterly growth rate in 10 years, reported the South African Reserve Bank (SARB), Tuesday.


Associations
International Winemaker of the Year joins the CWG
Abrie Beeslaar of Kanonkop, who has just been voted International Winemaker of the Year for 2008 at the International Wine and Spirits Competition in London, is the latest member to join the prestigious Cape Winemakers Guild (CWG).



Banking & Finance
BUSA welcomes interest rate cut
Busa has welcomed the decision by the Reserve Bank to cut the repo rate by 0,5% as being the right move in present economic circumstances. The organisation believes that even though the cut is a modest one, it will send a positive message to consumers and the business community that an upper turning point in the interest rate cycle might now have been reached.

Cellphone banking soars despite economic downturn
While the world is still speculating whether cellphone banking will be the next big thing, First National Bank says it has positioned itself to be progressive in its adoption of the technology and claims that around 2,500 new customers a day are now adopting their various interactive cellphone banking offerings across its Southern African subsidiaries.

Don't get too excited by repo relief
The SA Reserve Bank Monetary Policy Committee's (MPC) decision to reduce its policy repo rate by 50 basis points should imply a drop in prime rate from 15.5% to 15%. This would mean a decline in a prime rate instalment repayment (monthly compounded) of R185 per month on a R500,000 - 20 year bond, and R371 reduction on a R1 million bond.

Repo rate down 0.5%
The Reserve Bank has reduced the repurchase rate by 50 basis points to 11.5% per annum with effect from today, 12 December 2008. It's welcome news for homeowners and those paying off vehicles, credit cards and other debts.


Brand news
Revamped and refreshed - a new look for a favourite brand
Appletiser and its related variants: Red and White Grapetiser and Peartiser, have undergone a packaging revamp. The new packaging keeps the product abreast of global packaging trends - a vital factor when it comes to surviving in the fiercely competitive beverage market.


Levi's sets new US$3000 Idea Bounty challenge
While the first Idea Bounty winner who will walk away with US$2500 from FNB will only be announced next week, the second Idea Bounty brief was announced yesterday, Wednesday, 10 December 2008 - Levi's jeans for a whopping US$3000.

Enterprise development programmes set global std for SAB group
South African Breweries (SAB) has featured prominently in a recent Enterprise Development Report published by SABMiller, one of the world's leading brewers. The report highlights the work of SABMiller's subsidiaries in creating sustainable economic opportunities for small entrepreneurs throughout its supply chain.

Ken Forrester Vineyards scores Platter hat-trick
[ActivRetail] For the third consecutive year, Ken Forrester Wines has been awarded the prestigious Platter 5-star accolade, with its internationally acclaimed Chenin Blanc, The FMC 2006, crowned in the 29th edition South African Platter's Wine Guide for 2009. This completes the hat-trick after the Ken Forrester T-Noble Late Harvest 2005 and The FMC 2005 made this star-studded listing respectively in the two previous editions.


Recession takes toll on Sony
[Jeff Meisner] Japanese consumer electronics giant Sony announced Tuesday that it will lay off 8,000 full-time employees by March 2009 and slash spending in an attempt to reposition itself for a prolonged global recession. It also plans to reduce seasonal and temporary workers.

Sensational new puff pastry range
[ActivRetail] Heinz Foods SA is launching its Gourmet Sensationz range of frozen snacks and desserts, with the packaging assistance of Nampak Cartons & Labels.


New Pillsbury products produce sensational bakes with less time and effort - General Mills South Africa
Pillsbury remains every baker and coffee shop's productivity partner with its new range of luxurious bakes that go from the freezer to the bottom line in a jiffy.

Häagen-Dazs embraces new age communication tools through its Häagen-Dazs Fondue Flirt YouTube video - General Mills South Africa
There is general agreement in the marketing communications and related industries that new age communication tools are going to revolutionise the way in which organisations communicate with their targeted audiences.

Food industry a-buzz with rumour of new innovative product from Tiger Brands Out Of Home - Food Service Network Global
Tiger Brands tasked FSN with activating their new delectable range through a 360-degree campaign. The big challenge was to activate from factory to plate.

Sony Ericsson joins Open Handset Alliance
LONDON: Earlier this week, Sony Ericsson announced the extension of its portfolio strategy to include support for the Open Handset Alliance, confirming its intention to develop a handset based on the Android platform. Said Rikko Sakaguchi, CVP and head of creation and development at Sony Ericsson, “We believe Sony Ericsson can bring a wealth of experience in making consumer-focused multimedia handsets with new user experience to the Alliance, drawing on the successes of the Walkman and Cyber-shot sub-brands. Sony Ericsson is a strong supporter of open operating systems.” Membership of the alliance will complement the company's existing Open OS strategy, which is based on the Symbian and Windows Mobile platforms.


Corporate Social Investment
Hotel group makes Christmas special for the underprivileged
Christmas is a time of joy for many, yet a time of deep sadness for a lot of people who have nowhere to go, or are not in a financial position to celebrate.

A hole-in-one will be worth a million to disabled golfers
Bell's Extra Special Old Scotch Whisky will donate R1-million to the South African Disabled Golf Association (SADGA) when the first pro golfer hits a hole-in-one on the par 3, 15th hole on the 3rd and 4th days of the 2008 SA Open Championship.

Special Olympics Flame of Hope comes to SA
The 19th and 21st centuries are working together to make a very special project a reality. Transported in turn-of-the-last-century miners' lamps and guided by DHL's logistics management skills, the Flame of Hope for the 2009 Special Olympics World Winter Games (SOWWG) is making its way safely around the world.


Spreading festive cheer to the underprivileged

click to enlarge
Looking to bring some joy to underprivileged children, Primedia@Home raised funds to hire ten face painters and a magician and base them at the popular Super Jumbo Cash and Carry store in Crown Mines. They were briefed to paint the faces of the many underprivileged, disabled kiddies from Soweto, who patiently queued for the experience. In a separate initiative, the brand's Western Cape sales and operations department collected money to purchase goodies for the Helping Hands Aids Orphanage children in Wellington. Included in the delivery were DVD movies, gifts from Mr. Video. "When we can, [we love] to get involved with the community and spread some warmth - even ahead of the festive season," says Melvin Chagonda, Primedia@Home CEO."In times of dire need it is important to bring joy to children. [We believe] in giving back to the community and we were privileged to be able to do so."
- ActivRetail


Distribution
Game brings Xerox to SA retail floor
Bytes Document Solutions, the authorised distributor of Xerox products and solutions to 24 African countries, has struck a deal with JSE-listed Massmart to sell Xerox printers through Game stores.

Luxury distributor ups its game with new acquisition
While many companies are cutting budgets and tightening their proverbial belts, local premium goods distributor, Super-Brands, has bucked the trend with the successful acquisition of sporting goods distributor, Dunslaz, further expanding its reach into the premium goods arena. Super-Brands is best known for its electronic and home appliance subsidiary, My Appliances, and well-known brands, Sonic and Swiss Diamond.



e-Commerce
New vehicle sales portal goes live
Eliance, a national provider of comprehensive business solutions targeting the automotive sector, has launched a new web portal called CarsOnline to bolster levels of service, boost sales and address challenges within the automotive trade. The information management company believes the online initiative will benefit both vehicle retailers and consumers alike.


Amazon: Armed to beat the recession
[Douglas MacMillan] Amazon.com is one of those companies that's always coming up with something new. Sometimes it works, sometimes it doesn't - but it's that kind of innovation that will help the online retailer survive the recession.


Health & Safety
Food safety concerns increasing in China, says study
Packaging and traceability are cited as key components in regaining public's trust.


Hospitality
The science of the drive-through customer experience
A clean, well-lighted menu board. Speakers that clearly coo, "May I take your order?". And the biggie: speed without screw-ups.


Import/Export
Zimbabwe: Call to suspend diamonds from the Kimberley Process
Civil society is calling for the suspension of Zimbabwe from the Kimberley Process, an international certification scheme to prevent conflict diamonds from entering the multibillion dollar market.

SA, Nigeria commit to fast track trade, economic relations
[Luyanda Makapela] South Africa and Nigeria have committed to fast track trade and economic relations between both countries at the South Africa-Nigeria Bi-National Commission (BNC), Tuesday, 9 December.


Logistics
Mpuma's Maputo Development Corridor project to grow economy
[Luyanda Makapela] The Mpumalanga Provincial Government will launch the Maputo Development Corridor, one of the province's “Big Five” flagship projects, which aims to unleash economic development while growing the regional economy.


Manufacturing
PetroSA posts record revenue for 2007/8
PetroSA is pleased to announce that the company posted a record R11 billion in revenue for the for the 2007/08 financial year.

Innovative use of plastic lockers in a mobile locker system for Faces4Film agency - Path Plastics
Crew and cast can now be given peace of mind while working creatively on the job as a result of a collaboration between Path Plastics, with their range of HACCP-compliant, professional-looking, non-maintenance and very robust lockers, and Lockaway, who had perceived a gap in the market for a fully mobile storage system to service production houses' cast and crew.



Packaging
Coca-Cola says packaging is key in profitability plan
Industry experts, including executives in both the Coca-Cola and Pepsi systems, have said new packages must be introduced to give consumers more options and help bottlers improve profits.

Pharmaceutical packaging sustains temperatures and environment
Walmart Specialty Pharmacy's thermal-management shippers maintain temperatures, regardless of the weather, are sustainable and cut shipping costs by 50%.

PnP design-a-bag competition opens
As part of its ongoing commitment to environmental sustainability, Pick n Pay is launching a design competition to promote fresh local talent and reduce the use of plastic bags.



Promotions
South African food editor wins Grand Prize
LG Electronics (LG) held the final prize-giving ceremony of the "2008 LG Global Home Chef Awards" on 10 December 2008 with South African journalist and Food Editor for Your Family placing first out of 15 global finalists.

Win a magic new kitchen with Moir's
[ActivRetail] Moir's Baking Powder has embarked on a fresh advertising campaign to drive the promotion of the product in 2008 and 2009. Its new pay-off line, “Moir's Baking Powder - Rises to Every Occasion”, will be communicated with primary focus on lower LSM consumers and regional focus on specific SKUs.


Dream Big to support children's hearts and Tomorrow
[ActivRetail] Appletiser SA and Jenna Clifford will be launching a promotional competition in January, taking place in Pick n Pay Hypers around the country.



Regulatory
ACA on proposed alcohol advertising ban
Should Government's proposed amendment to the National Road Traffic Regulations be passed, it would mean that all alcohol product advertisements or any advertisement depicting alcohol products on a variety of media will be banned. Odette Roper, CEO of the Association for Communication and Advertising (ACA) examines the proposed regulation and sheds light on the effect it is likely to have on the advertising profession.

Expert says billions wasted on 'quack' health food products
A British nutrition expert says billions of dollars are being wasted on 'quack' health food products.

Fraud rocks Italy's olive oil trade
[ActivRetail] The international olive oil industry recently received a severe blow when Italian police arrested 23 people and confiscated 85 farms after an operation that exposed fraudulent actions in Italy's olive oil trade. According to media reports inferior oil was passed off as extra virgin olive oil and imported oil was relabelled as Italian oil.


Foskor fined for selling fertiliser
One of South Africa's largest fertiliser companies, Foskor, sold fertiliser for at least five years before the department of agriculture realised the company had been selling the product without the necessary permits.


Research
Consumer confidence slides during Q4
The FNB/BER consumer confidence index (CCI) declined by 3 index points - from -1 during the third quarter of 2008 (08Q3) to -4 in the fourth quarter (08Q4). A reading of -4 indicates that there are currently more pessimists than optimists.


Retail services
Communication key to retaining customers during decline
During economic uncertainty and recessions, marketing budgets are usually the first to be cut. However Director of InZalo Communications Bridget von Holdt explains in doing so you reduce the number of people whose attention you capture, reducing your potential market.

Loyalty Lab: The key is to keep adapting
[Jim Offner] Five years ago, Mark Goldstein and three partners recognized that loyalty programs were becoming a cottage industry. Coming up with the right way to manage those programs, he believed, would be a neat trick. So would finding an effective way to lure in customers.


Retailers
For the well-heeled
[Matebello Motloung] For many women, shoes and not diamonds are a girl's best friend. Ask Penny Mubaiwa, owner of Amaranth Exclusive, an upmarket shoe boutique that specialises in imported footwear from Brazil.

Retail in full retreat as sales plunge
[Mariam Isa] Retail sales fell for the sixth month running in October, Statistics SA said yesterday, while a business survey showed that trade conditions for wholesalers and retailers plunged to an eight-year low last month.

BDA bank funds construction of rural shops
Over six million Angolan kwanzas (about R600,000) were made available by the Angola Development Bank (BDA), for the implementation of a project for the construction of five rural shops, in Andulo district, at 130km to the north of Kuito city, capital of the southern Bié Province.


Supply chain
Wool season ends on positive note
Cape Wools on Wednesday said that wool prices were up at its last sale before the Christmas break.

Burkina Faso: High rice prices despite tripled harvest
Despite a 2008 rice harvest over three times that of 2007, local rice prices remain out of reach for many consumers.


Technology
Automation plays increasing role in helping packagers stay competitive - study
As 2008 draws to a close, it's interesting to look back at a year literally filled with highs and lows. Early in the year, everything was looking up for packaging. Packagers and their suppliers were riding high and making plans for growth. Then the global economy was roiled, and the future suddenly seemed somewhat murky.

Apple's staunch defence of the iPod ecosystem
[David Lawsky] Apple might be unfairly blocking rival software makers who want to sell music for its iPhone, according to some rivals and a technology rights group.


Galleries
JWT Johannesburg bears all for Cotlands

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Prudential Eat Out Restaurant Awards 2008

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