25 Jan 2010

 

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The price of appreciation

So it's official, after months and months of pursuing and wooing, Cadbury has finally sold out to Kraft. Unfortunately for Cadbury staff, this could mean the loss of around 7000 jobs. But does this mean the end of the renowned chocolate brand's 186-year-old legacy? Or, as one Chicago newspaper has asked, "Will Kraft continue Cadbury's edginess?"

Back to marketing on the home front, Fawu and striking ABI workers appear to be doing their level best to "smash" the Coca-Cola brand and have even sent a letter to LOC chief executive Danny Jordaan asking him to cancel Coca-Cola's marketing campaigns for the upcoming World Cup. Ban Coke advertising during the 2010 World Cup? Excuse me while I fall off my chair laughing. For those of you who don't know, FIFA's sponsorship programme consists of five tiers; the highest being for six global corporations, one of which is Coca-Cola. Do they really think FIFA is going to kowtow to some little upstart union and cancel the advertising for one of its biggest international sponsors? The idea is even more laughable than Fawu expecting South Africans to give up their Black Label, Castle, and brandy and coke in support of their demands. It's not going to happen. And, as usual, it all just comes down to money. ABI, SAB and Coca-Cola have a lot of it; union workers want more of it. And who says ABI can't afford to up its current offer? But, if ABI MD John Ustas is telling the truth, then the company's current offer will tip the minimum wage for unskilled workers to R7235 per month. And I know several domestic workers, junior office administrators and the odd store manager who would be very happy with that kind of income... Nevermind the rest of South Africa's unemployed masses. I reckon it's time they start appreciating what they've got or move over and give it to someone who will.


Shan Radcliffe, Retail editor
Please send retail news to: retailnews@bizcommunity.com
Responses to this column welcomed in our new online editor's column archive.
Image courtesy of FreeDigitalPhotos.net and Suat Eman.

Top stories



Editorial news

Retail


Strikers call for Coca-Cola advert ban at World Cup
[Kea' Modimoeng] Disgruntled employees of Amalgamated Beverage Industries (ABI), the soft drinks division of South African Breweries (SAB), have vowed to continue with their month-long strike action until their wage demands are met. Read more >>

Foodcorp achieves ISO 22000
Foodcorp Ready to Eat Specialty Division, previously known as Gull Foods, was awarded an ISO 22000 certification in December 2009. As a leading Woolworths' prepared foods supplier, it is reportedly its first supplier to have won this prestigious certification. Read more >>

Retail dip raises hope for another rate cut
[Mariam Isa] Retail sales fell more sharply than expected in November, highlighting the plight of embattled consumers and reviving speculation that the Reserve Bank may cut interest rates again this year. Read more >>

November wholesale trade sales -13.0%
[Evan Pickworth] Wholesale trade sales at constant (2000) prices for November declined to -13.0% year-on-year (y/y) after declining a revised -11.4% (-11.5%) in October, Statistics South Africa data showed on Wednesday, 20 January 2010. Read more >>

Nov retail trade sales slump
South African retail trade sales at constant (2008) prices for November were recorded at -6.6% year-on-year (y/y) from a revised -6.1% (-6.5%) in October, figures released on Wednesday by Statistics South Africa show. Read more >>

Apple raises stakes in patent duel With Nokia
[Erika Morphy] Apple has filed a complaint before the US International Trade Commission (ITC) requesting that it block Nokia imports to the US. The request follows a legal dispute between two companies that began in October when Nokia filed suit against Apple for patent infringement. Read more >>

SA retail to stabilise in 2010
Fitch Ratings says South African retailers continue to be impacted by weak market and demand conditions, and that the South African economy has not yet moved into a sustainable growth position, despite emerging from a recession in late 2009. Read more >>

Banking & Finance


Marcus expected to leave repo rate unchanged
The Reserve Bank's Monetary Policy Committee (MPC) will today, 25 January 2010, have its first meeting of the year with economists predicting that the repo rate will remain unchanged at 7%. Read more >>

Consumer financial vulnerability improves slightly
The financial vulnerability of South African consumers improved slightly during the fourth quarter of 2009, although general levels of vulnerability remain a serious concern, according to the latest results of the Consumer Financial Vulnerability Index (CFVI). Read more >>

Cellphone banking passes R1bn
FNB have announced that December 2009 saw R1bn worth of banking conducted in 10 million cellphone transactions. This exceeded the previous year's cellphone banking use by more than 100%. Read more >>

New CEOs at FNB cellphone banking
FNB, which launched its cellphone banking in 2005, is doubling its management of the mCommerce team with the appointment of Yolande van Wyk as CEO of Smart Services and Ravesh Ramlakan as CEO of Cellphone Banking Services. They replace outgoing CEO of mCommerce, Len Pienaar, who will be joining international messaging company Clickatell, in Cape Town. Read more >>

Brand news


New Chenin from Fleur du Cap

click to enlarge
Fleur du Cap Chenin Blanc 2009 has been launched and is considered by winemaker, Pieter Badenhorst, to be a great food wine that offers wine lovers real value for money. This versatile wine can be drunk on its own and stands up to strong flavours and rich pasta dishes, as well as spicy Thai food. It is available at leading wine outlets at around R40 per bottle.

2002 Desiderius out
Pongrácz has released its signature Cap Classique, Desiderius Pongrácz 2002 in its distinctive fluted bottle. Read more >>

SABMiller loses fizz in third quarter
[Kgomotso Mathe] Brewing giant SABMiller performed below analysts' expectations in the third quarter to last month, as it said beer sales by volume were flat worldwide. Read more >>

Klein Zalze wins Chenin award
The Guala Chenin Blanc Challenge, organised by Wine Magazine, was won last week by family-owned Stellenbosch wine producer, Kleine Zalze. Read more >>

Salute from one centenarian to another
To celebrate its centenary and its client's, Grindrod Bank, part of the century old Grindrod group, presented Mary Ella Sampson with a Kruger Rand on her 100th birthday on Friday 15 January 2010. Read more >>

Clothing & Textiles


Textile export incentive list out soon
[Charlotte Mathews] A new list of 10 clothing and textile product categories eligible for duty credit certificates would be gazetted shortly, the Department of Trade and Industry's chief director for African multilateral economic relations, Xolelwa Mlumbi-Peter, confirmed late last week. Read more >>

International design house seeks local talent
[Louise McAuliffe] Kicking off fashion week, designer label Karen Millen announced that they will be scouting South Africa for an especially talented individual to join their studio in the United Kingdom. Read more >>

Commercial property


Upturn in space enquiries on commercial property
JHI CEO Marna van der Walt reports that in the first few weeks of trading in 2010, the company's industrial brokers have seen a significant upturn in enquiries for space. Read more >>

Corporate Social Investment


Support CANSA Shavathon
The 7th CANSA Shavathon takes place countrywide on 5-6 March 2010, when supporters can have their heads shaved or their hair spray painted to raise funds for the organisation. Read more >>

Chicken art for the soul
Four Nando's restaurants, Adderley Street, Woodstock, Tokai and Camps Bay, are showcasing inspiring original collections of art to actively support local artists. Read more >>

CANSA gets Sandton City doors
Through its R1.77bn first phase repositioning programme, Sandton City Shopping Centre was able to donate 58 doors of various sizes to CANSA (Cancer Association of South Africa) for use in renovating the Gwaranang building in the new Steve Biko Paediatric Oncology Unit. CANSA made use of the voluntary services of the Round Table Organization to collect the donated goods. Read more >>

Street children benefit from restaurants
Leading restaurants in the Stellenbosch and Paarl winelands are ploughing back into the community through StreetSmart SA, the non-profit organisation dedicated to the social integration and upliftment of street children. Read more >>

CRM


CRM in the Cloud
[Graham Mansfield] In the Web 2.0 space, the relationship between buyers and sellers has changed and managing customers, fostering loyalty and generating more revenue streams is far more complex today than before the rapid user adoption of its applications. Read more >>

Distribution


New war in Angola
[Sasha Planting] Angola is shaping up as the next battle ground in Africa's beer wars. With an estimated GDP per capita of almost US$5200 in 2008, Angolan consumers are now richer than their regional counterparts — though wealth is unevenly distributed. Read more >>

e-Commerce


E-commerce data security 2010: Learning from 2009's debacles
[Pankaj Kumar] Tough economic times brought a surge in online shopping. As more people turn to the Web, merchant readiness for handling confidential data is more critical than ever for a successful online presence. Etailers must have their data protection systems in place before flipping the switch, rather than having a major disaster to clean up after a breach occurs. Read more >>

Exhibitions


A/W Audi Fashion show promises visual excitement
For his upcoming Autumn/Winter 2010 collection titled, Fantastical Structures, David Tlale reveals designs inspired by decadent architecture, which will be presented during Audi Autumn Winter (A/W) Audi Joburg Fashion Week in Joburg on January 22 2010. Read more >>

Hostex has it all
Hostex Cape, to be held from 8-10 March 2010 at Cape Town International Convention Centre, from 10am to 6pm daily, promises to be improved. It offers over 220 exhibitors, plus the SA Chefs Village and HomeGrown/SME Village and new features, such the Global Pizza Challenge, Wine Circle, Greenstuff Village and Green Hotel. Read more >>

Green sustainability


Hanging onto life
Hangerman, which collects all of the used hangers from Woolworths' stores, has refurbished over 250 million hangars since 1986, when Woolworths was instrumental in setting up it up in South Africa. Read more >>

Hospitality


SA pizza winner goes for international prize
The current titleholder of the inaugural Global Pizza Challenge (GPC) 2009, Odette Williams, owner of Mi Casa Café, Sodwana Bay, now has the opportunity to present her winning SA pizza at the GPC International Final to be hosted in Melbourne Australia on 15 May 2010. Read more >>

2010 overpricing undermines tourism business - SA Tourism
[Issa Sikiti da Silva] Airline companies selling flight tickets to the highest bidder, B&B and ‘second-class' hotels charging up to R1000 a night for a standard room and one meal at restaurants costing an arm and a leg. Metered-taxi drivers increasing ten-fold the fare of a short distance trip and car rental outlets not budging if you don't cough up. Read more >>

New Tiger cub chefs
The first six-month course for 2010 has started at the Tiger Brands' Catering Incubator, run in association with the South African Chefs Association (SACA). It provides 28 budding caterers with the skills to build a career in the challenging and globally competitive world of cuisine. Zin Mabaso, managing executive: groceries at Tiger Brands, will oversee the project. Read more >>

Import/Export


Vive la Afrique du Sud - SA wine exports continue to grow
Recent retail sales figures released by AC Nielsen for the UK, South Africa's biggest wine export destination show that the country continues to rank as the fastest-growing wine category in the UK, increasing its volume share of the market to 12,3% for 2009, up from 10,4% in 2008. Read more >>

Manufacturing


Eskom hike has big pharma on the run
Pharmaceutical giant Glaxo-SmithKline has moved a major part of its manufacturing out of South Africa due to forecasts of a 35% electricity tariff hike, an executive told the National Energy Regulator on Wednesday, 20 January 2010. Read more >>

SA factory revival gathers speed as demand recovers
[Mariam Isa] Manufacturing activity grew faster than expected last month, a key industry survey showed yesterday, 18 January 2010, supporting hope that the recovery in the economy's second-biggest sector is gaining momentum. Read more >>

Refrigeration


Shoprite gets ‘green' transport refrigeration
The Shoprite Group is testing a nitrogen-powered transport refrigeration system, ecoFridge, in South Africa before introducing it into its fleet for fresh produce. It offer 100% silent running, uses no HFCs or HCFCs and is already compliant on emissions set for Montreal in 2010 and Kyoto in 2015. Read more >>

Regulatory


Grey areas, but shoppers will have help
The Consumer Protection Act will come into operation from 24 October 2010, 18 months from when it was signed into law by the president. Read more >>

Larger jurisdiction for Credit Ombud
[Edward West] The Credit Information Ombud has expanded its jurisdiction to include complaints relating to credit transactions. Read more >>

New act covers consumers, landlords
[Thuli Zungu] There are landlords who continue to flout the law because they think tenants have no rights. Read more >>

South Korea to restrict TV adverts for junk food
SEOUL, SOUTH KOREA: South Korea on Tuesday announced curbs on television advertising for junk food in a bid to cut obesity and promote healthy eating among children. Read more >>

Research


Huge market potential for Gauteng
According to new market research, Gauteng accounts for about 35.0% of total household consumption expenditure in South Africa. Read more >>

Back to values
For businesses to survive economic drought and 2009 hangovers requires that brands return to ‘old-fashioned values'; consumers are now drawn to more authentic brands and business practices. This is according to the Now Report study, conducted by local market research company, the Consumer Insight Agency (c.i.a), every two years. Read more >>

Retail marketing


Winner of island competition
The recent 'Island Delite' competition, created by Boost Juice Bars in association with Qatar Airways and the Maldives Tourism Board, received over 6400 entries. Read more >>

Retailers


Headwinds flatten sales
[Sasha Planting] Trading updates released by SA's big retail stalwarts — Massmart, Shoprite, Mr Price, Truworths and Clicks — were appalling, but hardly surprising. Read more >>

Hermes to launch new Chinese luxury firm
PARIS, FRANCE: French luxury goods group Hermes is set to open a Chinese subsidiary later this year that will sell furniture, clothes and household accessories, the company said. Read more >>

Security


ADT wins patent suit in China
ZhenTai Science & Technology Company has been found liable for infringing upon ADT's industry-leading Sensormatic anti-theft Ultra Max label technology in a lawsuit brought in China. Read more >>

Supply chain


Food production beyond exploitation
[Sasha Planting] Less than 20% of arable land in Africa is in productive use. This, coupled with the global food shortage, has prompted African governments and private investors to look at the opportunities presented in fallow land across the continent. Read more >>

AB InBev in temporary layoffs amid beer protest
BRUSSELS, BELGIUM: Brewing giant Anheuser-Busch InBev began temporarily laying off staff on Wednesday, 20 January 2010, as a worker blockade brought production to a standstill, hitting supplies of some of Belgium's most popular beers. Read more >>

Technology


Ovi Maps free on Nokia smartphones
Nokia announced late last week its plans to make walk and drive navigation free on its smartphones as part of a new version of Ovi Maps, available for download for 10 Nokia handsets, including N97, 5800 and E72, with more smartphones expected to be added in the coming weeks. Read more >>

CES 2010: Consumer-tech style meets business-IT substance
[Charles King] Some of the best things at CES weren't necessarily the most talked-about. Corning's advanced touchscreen glass, ClickFree's automated storage backup software, Herman Miller's Embody chair, and Yurtopia's earbuds caught my interest, even though tablet PCs and 3-D were at the center of a lot of the hoopla. Read more >>

Managing fuel costs, theft
AFS Group supplies eFuel, amongst other fuel management solutions, to a number of its clients to monitor fuel consumption and curb fuel mismanagement. A card-free, cash-free system enables drivers to procure fuel and oil at participating retail service stations or home base station or both. Read more >>

EMRC promotes Africa-India agricultural exchange
Brussels-based international organisation EMRC will host its first agricultural economic mission to Hyderabad, India where 35 African delegates will be immersed in the high-end agricultural technology of India. Read more >>

Training


Islamic banking course launched in SA
The Bankseta officially launched its introductory course to Islamic banking late last week, the development of which was a collective effort by members of Bankseta, its Islamic Banking steering committee and members of Shari'ah Financial Consultancy. Bankseta, in support of transformation and celebrating diversity within the financial sector, funds the course. Read more >>


Company news

Brand news


Vital Health Foods announces Mandela/De Klerk Gold Medallion competition winner - Vital Health Foods
Maureen Lawrence is the winner of the Mandela/De Klerk Gold Medallion competition! The Medallion, which was minted by the Mint of Norway and is worth around R10 000, is a tribute to Mandela and De Klerk for the work they did in terminating apartheid and bringing justice to the nation. Read more >>

Vital Health Foods breaks new ground by joining SMASA - Vital Health Foods
Vital Health Foods has become the first wholly vitamin and nutritional supplement company in South Africa to join Self Medication Manufacturers of South Africa (SMASA). Read more >>

Exhibitions


There is only one baby expo that delivers - The Baby Expo - The Baby Expo
Marketing is all about promoting a product to the right audience and in the right way. The key to successful marketing is to make sure the right people are informed and one of the greatest ways to do this is through the use of exhibitions. Read more >>

Retail marketing


World-class entertainment at the Your Child Kids Expo - Egg Marketing & Communications
Noddy and Mr Men & Little Miss will be joining this year's Your Child Kids Expo. Not only will the much-loved characters be available for meet-and-greets and photo opportunities, but families can also enjoy both a Mr Men & Little Miss and a Noddy stage production. Read more >>


BizLounge
“Polisiekar” mellows out for Kirstenbosch   RETAIL
[Ruth Cooper] I had heard stories of how previous Fokof gigs at Kirstenbosch had gotten a little wild and how the usual classy and chilled Kirstenbosch concert had been all but taken over by a rowdy bunch of youngsters chucking beer bottles, ignoring the no smoking rule and moshing around the stage. So with this in mind I prepared myself for a rough Sunday afternoon. The concert however, was quite sedate with only a few water bottles being tossed by Francois into the smallish crowd gathered round the stage.

Rattex spits it out on Taxijam   RETAIL
[Ruth Cooper] Rapper Rattex chews it up and spits it out while taking a drive through town with Taxijam. Rattex or better known as Thabo Twetwa to his family grew up in the 80's in the harsh political environment in SA that was apartheid. His music reflects this upbringing and aims to address important political and representational issues. Rattex is one of the founders of the 'Spaza' movement, where lyrics are performed in a combination of isiXhosa, English and Cape Flats slang.

Standing ovations for Cinderella on Ice   RETAIL
[Riccardo Spagni] I had never seen an ice show before. There was that. And the lady I took with me looked breathtaking in her little black number. There was that too. So by the time I actually sat down in the Artscape's expansive Opera House, I was desperately trying to act cool and casual. Much to the chagrin of my partner, no doubt, I basically lost interest in the entire world around me within five minutes of the show starting. Cinderella on Ice is, without a doubt, unlike anything I have ever seen.

Cricket at it's most entertaining   RETAIL
[Alan Hughes] Nicholas Ellenbogen's “Slips” is a definite winner. Although set at Newlands Cricket Ground, the play is about people and cultures, and no real sports knowledge is needed to enjoy the humour, which should appeal to all - especially South Africans.

A beautiful Sleeping Princess   RETAIL
[Riccardo Spagni] Watching a ballet - be it a contemporary or a classical ballet - is not something that appeals to all individuals. The thought of following a story line expressed only through the medium of dance, especially when it is restricted to a set of traditional movements, has about the same appeal as watching a foreign language film without subtitles. And yet...if you man up (or woman up) and go out there and watch a ballet, you find an amazing thing. The music, with no words, with no lyrics, coupled with the dancing...stirs up this melting pot of emotion in you. Quickly you discover yourself laughing, crying, in pain, in joy, all on some invisible cue.

Campus Invasion: Bandemic hits varsities   RETAIL
The annual Campus Invasion: Bandemic tour is coming to five major South African universities this month: Pretoria, Cape Town, Stellenbosch, Grahamstown and Johannesburg. It will be an eclectic mix of the best bands and DJs and will start on 22 January 2010.

Smooth and soulful Guy Buttery performs for Taxijam   RETAIL
[Ruth Cooper] Soulful guitarist and composer Guy Buttery recently took a drive down Long and Kloof Street with the Taxijam crew. Playing a purely instrumental song, called December Poems, Buttery proved what an accomplished musician he is and why he is so deserving of his numerous awards and accolades, including 'Best Instrumental Album of the Year' for his album “When I Grow Up” and 'Best Newcomer' at the 2002 SAMA's. Take a listen it is quite beautifully melancholic and soothing.


New accounts
  • Intimedia scoop Toys R Us, Babies R Us, Reggie's and Baby and Co - more info

    Jobs offered
    Manager - Sandton/Hyde Park
    Target driven and passionate manager required for one of our top retail shops in Sandton/HydePark. Must have retail experience. Crabtree&Evelyn Luxury bath and body products. Read more >>

  • Sales People X3 - Bryanston
  • Market Manager - Stellenbosch/Tygervalley

  •   OPEN DOOR Recruitment:
    Specialising in
    Media Sales,
    Advertising and
    Marketing placements
    www.opendoor.co.za

    Events to diarise
  • How to get an appointment with anyone Corporate IQ Training - Polokwane, 27 January
  • E-marketing essentials KumaloGreen Training - Johannesburg, 27 January
  • The Six P's of Marketing in Africa Upbeat Marketing - Johannesburg, 28 January
  • Build your own profitable online business Cape Town Live Events - Cape Town, 30 January
  • Three year Diploma: Interactive Graphics Concept Interactive - Cape Town, 1 February
  • Essentials of newspaper management Sol Plaatje Institute for Media Leadership - Grahamstown, 1 February
  • The Bua Movement - Public Speaking Bua Connexion Consulting cc - Alberton, 5 February
  • Web Strategy for 2010 Jayz Internet Solutions - Cape Town, 8 February
  • AAA Diploma in Marketing Communication AAA School of Advertising - Johannesburg, 8 February
  • QVC's Organisational Communications Course 2010 Quo Vadis Communications - Johannesburg, 8 February

  • Quotes
    "Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does." - Steuart Henderson Britt
    "There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else." - Sam Walton
    "Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity." - Karl Marx
    "The greatest education in the world is watching the masters at work." - Michael Jackson
    "Excellence is not a skill. It is an attitude." - Ralph Marston


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