12 Nov 2012

Retail South Africa

 

Much ado about burgers and bread rolls

Image courtesy of Grant Cochrane / FreeDigitalPhotos.net.
The hot topic in the fast food industry this last week has been the announcement of Burger King's impending arrival on local shores. As usual, Twitter has been the playground #BurgerKingSA / @BurgerKingSA friends and foes have taken to, to express their welcome or distaste for the new entry.

In other news, after plans to relist this quarter, direct marketing retailer HomeChoice has decided not to leap back onto the JSE just yet, with directors saying that current conditions are not "supportive for a listing".

We've also looked at the importance of packaging, while the CGCSA pointed out that religious endorsements don't add to labelling costs.

And it would seem bread producers are in hot water again over allegations that they've been colluding to reduce the discounts offered to distributors.

On that (food for) thought, have a great week!


Shan Radcliffe, Group Head - Retail

PS Responses to this column welcomed in our online ed's column archive. Send all your retail news to retailnews@bizcommunity.com, exclusive opinion pieces to contributors-retail@bizcommunity.com and international news to internationalnews@bizcommunity.com; also take a look at our guide "How to contribute to Bizcommunity, from op-ed pieces to news". Don't forget to follow @Biz_Retail on Twitter and join us on Facebook!



Top stories


Editorial news

Retail


McKinsey report on rise of the African consumer out now
The latest McKinsey report offers a detailed profile of African consumers, including their demographics, behavior and needs. In one of the first studies of its kind, the company's Africa Consumer Insights Center surveyed 13 000 consumers in ten African countries, with a focus on the largest cities. Five categories of consumption were covered - apparel, financial services, groceries, the Internet and telecommunications. The conclusion is that the single-largest business opportunity in Africa will be its rising consumer market. View the report here.

No plans to list HomeChoice
Direct marketing retailer HomeChoice, which delisted from the JSE in 2003, has shelved its planned relisting. Read more >>

Smuggled cigarettes 'will cost SA R12bn in taxes'
[Paul Vecchiatto] South Africans will smoke 8-billion smuggled cigarettes‚ an increase of 500-million cigarettes from last year‚ costing the government R12bn in lost taxes this year‚ Tobacco Institute of Southern Africa (TISA) CEO Francois van der Merwe says. Read more >>

Brand news


New vineyard at Far Horizons part of R40 million Irish-SA project
Sports tourism specialist and wine connoisseur, Irishman Edwin Doran and his long-time friend, Constantia wine route pioneer Andre Badenhorst have joined forces to create a wine estate project to trade under the name Doran Vineyards on the farm Far Horizons in the Voor-Paardeberg area of the Western Cape. Read more >>

Commercial property


Corporate social investment


CRM


Distribution


Skye Distribution to launch Rookie concept with kids top brands
Haddad, which represents Converse, Jordan and Nike Action kids' apparel, has signed a distribution agreement with Sky Distribution to rollout these brands in South Africa, through the US concept of Rookie stores. Read more >>

Exhibitions & events


Fraud Awareness Week, Coca-Cola SA joins supporters
This week is International Fraud Awareness Week and around the world, official supporters will engage in various activities, including hosting fraud awareness training for employees, conducting employee surveys to assess levels of fraud awareness within their organisation and posting articles on company websites and in newsletters to highlight the problem of fraud. Read more >>

Celebrity chef tour attracts 40,000 enthusiasts
The recent Nuvolite Celebrity Chef Roadshow featuring celebrity chef, Deena Naidoo toured the Pavilion in Durban, Canal Walk in Cape Town, Sandton City in Johannesburg and Menlyn Park in Pretoria. Over the four weekends an estimated 40,000 health-conscious cooking enthusiasts attended the shows. Read more >>

Fashion, clothing & textiles


FMCG


Franchising


Burger King to open in South Africa
The world's second largest fast food hamburger chain, Burger King, has announced a joint venture (JV) agreement with Grand Parade Investments (GPI) to launch the franchise in South Africa. The opening of the first restaurant in the innovative new global design is planned for Cape Town in 2013. Read more >>

Hospitality


Nederburg's Razvan Macici new Diners Club Winemaker of The Year
Nederburg cellar master, Razvan Macici, crowned the 2012 Diners Club Winemaker of the Year earlier this month (November 3), says winning the coveted title marks one of the most significant achievements in his career. Read more >>

New Platter Guide out mid-November
Platter's 33rd edition features well over 900 South African wine producers, merchants and brands, including 54 new ones, and over 7,300 locally produced wines. The print version will be available from the second half of November at selected bookstores and retailers countrywide. Read more >>

Import/export


Manufacturing


Manufacturing output down 1.1% in September
Manufacturing production in South Africa fell by 1.1% year-on-year (y/y) in September after a downwardly revised 2.8% (3.0%) year-on-year rise in August‚ data released by Statistics SA on Thursday showed. Read more >>

Bread producers may face class action
South Africa's bread producers may face a class action after an independent bread producer claimed that Pioneer Foods, Tiger Brands and Premier Foods had colluded to reduce the discounts offered to distributors. Read more >>

Packaging


Religious endorsements do not add to label costs
The Consumer Goods Council SA (CGCSA) has pointed out that the new regulation, R146, makes provision for religious endorsements, whether in the form of a logo, text, pictorial or otherwise, but that the costs form part of the labelling process. Read more >>

The importance of packaging
Packaging plays a vital role in terms of protection, storage and hygienic handling of a product and it plays a key role in the marketing mix. Timothy Beattie, GM of Pyrotec PackMedia, a leading provider in product identification solutions, says, "Packaging is often regarded as the most important form of advertising at the most critical point of all in the purchasing journey: the point of purchase." Read more >>

Regulatory


Retail marketing


PGP Reality will enhance print media advertising
Pam Golding Property Group (PGP) has announced the launch of a technological innovation, which will add value to the property experience for its clients, called 'PGP Reality'. Read more >>

[Biz Takeouts Podcast] 45: Search marketing
Listen to the podcast of last week's Biz Takeouts Marketing & Media radio show which airs every Thursday 5pm-6pm, streamed live via 2oceansVibe Radio, to find out how search marketing, SEO and SMO can be used to improve a company's visibility online. [twitterfall] Read more >>

Retailers


Security


Managing EMV compliance - journey continues
[Shaun Baker and Liam McDermott] EMV standards were introduced by EuroPay, MasterCard and Visa (hence EMV) some years ago, mainly to reduce the risk of fraud in credit cards. Widely known as chip cards, they effectively provide a computer-processing platform with significantly improved card transaction security, even though they have not yet delivered on all the multi-application uses initially expected. Read more >>

Technology


Training



International
Japan car sales in China fall 59.4% in October
SHANGHAI, CHINA: Sales of Japanese passenger cars in China slumped 59.4% year-on-year in October, a Chinese industry group said last week as a territorial row between the countries hurt demand. Read more >>

Burberry profits fall to £85m
LONDON, UK: British luxury clothing and accessories firm Burberry on Wednesday said its net profits slumped by more than a quarter in the group's first half following a sizeable one-off charge. Read more >>

Apple must pay US$368m for patent infringement
WASHINGTON, UNITES STATES: Apple has been ordered to pay US$368M for patent infringement in its use of Facetime, an application that allows for video calls on mobile devices, the plaintiff said on Wednesday. Read more >>

L'Oreal opens huge Indonesia plant
JABABEKA, INDONESIA: Cosmetics giant L'Oreal has opened its largest factory in the world in a move that hope is aimed at boosting profits from strong demand for its beauty products in Asia. Read more >>

comScore reports US$41.9bn in Q3 2012 US retail e-commerce spending
RESTON, US: comScore Inc, a leader in measuring the digital world, today released its Q3 2012 US retail e-commerce sales estimates, showing that online retail spending reached US$41.9bn for the quarter, up 15% versus year ago. Read more >>

Durable goods orders increase in the US
WASHINGTON, US: A jump in aircraft orders drove new orders for durable manufactured goods sharply higher in September, but not enough to offset the previous month's plunge, the Commerce Department reported last week. Read more >>

Sao Paulo Fashion Week reflects joy and colour
SAO PAULO, BRAZIL: Sao Paulo Fashion Week (SPFW), the top such event in Latin America, kicked off on Monday with joyful and colorful designs for its 2013 winter collection. Read more >>

More International...


Company news

Brand news


Summer seasons soups and smoothies - Fore Good
With winter behind us, we begin to look at healthier eating plans as well as fun, light and easy ideas to help us get back into shape for summer. The Moulinex Soup and Co is a handy appliance that can help you create soups and smoothies alike. Read more >>


Government
South Africa elected to ECOSOC
PRETORIA: South Africa has been overwhelmingly elected by the Members of the UN General Assembly to the 47-Member Economic and Social Council of the United Nations (ECOSOC). ECOSOC is one of the Principal Organs of the United Nations alongside the Security Council and General Assembly. Read more >>

Dti clarifies revised B-BBEE codes
PRETORIA: The Department of Trade and Industry has clarified media reports stating that the revised Broad-Based Black Economic Empowerment (B-BBEE) Codes could ruin charities, saying the B-BBEE process contributes to economic transformation while seeking to create an equitable society. Read more >>

Sharp rise in household expenditure
Expenditure by South African households has increased by 24.6% between the years of 2005/2006 and 2010/2011, the Income and Expenditure Survey (IES) of 2010/2011 has found. Read more >>

Depleted abalone stocks a concern for SA
[Dennis Cruywagen] South Africa's depleted abalone stocks will not recover unless illegal fishing is reduced dramatically. Read more >>

Stricter BEE code could crush non-profit sector
Inyathelo: The South African Institute for Advancement is warning that the proposed amendments to the broad-based black economic empowerment code could have a serious impact on charities and the non-profit sector as a whole. Read more >>

More Government news...


Motoring
Toyota 86 is made for driving pleasure
[Henrie Geyser: motoring editor] Say Toyota and words such as solid, reliable, good value spring to mind, not sexy and desirable - but that has all changed with the arrival of the Toyota 86, the prettiest, affordable two-seater hard top sports car to arrive in this country for a long, long time. Read more >>

More Motoring news...


Travel
The Marine - where you can have a whale of a time
[Brian Berkman: contributing editor, travel] One of my first hotel visits as a travel writer a long while ago was to The Marine in Hermanus. Even then, it was the premier place to stay. I tried to find my review of that first visit to refresh my memory of our experience but I couldn't. However... Read more >>

Sugar Beach... where time stands still
[Rod Baker] Good old plantation (colonial) architecture, good old plantation hospitality. Sugar Beach is the ultimate resort to relax... Where a couple of days feels like a week - and you could be excused for not falling down if you saw Rhett Butler lugging Scarlet past you up the stairs and telling her 'Frankly, my dear, I don't give a damn - you're coming upstairs to check out my new luggage. And that's an end to it!' Read more >>

More Travel news...


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Quotes
"The beginning is the most important part of the work. (via Brainy Quote)" - Plato
"A word to the wise ain't necessary - it's the stupid ones that need the advice. (via brainyquote)" - Bill Cosby
"Life is too short to work so hard. (via Brainy Quote)" - Vivien Leigh
"If a man does his best, what else is there? (via cs.virginia)" - General George S. Patton
"Few of us get anything without working for it. (via Brainy Quote)" - William Feather


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