
THIS ISSUE: 08 Sep - 14 Sep
A proper send-off down below for Chairman Ackerman the Elder, whose passing we learned of just as we were going to print last week. A giant of the industry – indeed of the South African economy, whose innovations and achievements we have only just touched on below. Otherwise, a bold new strategy for Tiger Brands, and a comprehensive look at the economy from our analysts. Enjoy the read.
YOUR NUMBERS THIS WEEK
RETAILERS AND WHOLESALERS
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Pick n Pay Father of the industry
Last week we paid tribute to Raymond Ackerman, the father of modern grocery retail in South Africa. Today we look at some of the innovations he brought to the industry – although the modest man did not see himself as an innovator. “There wasn’t a lot of original thinking, but I am a good learner. I learned from American supermarkets and Carrefour in France,” he said. But he brought us longer trading hours – including Sunday shopping. The sixty-day payment schedule for suppliers, who moaned a bit even as they grew with the Pick n Pay business, which was able this way to offer better value to punters. Banking services in store. He employed the first black manager of a grocery store, in Rondebosch, and was one of the first business leaders to recognise trade unions. He waged relentless campaigns against monopolies and price fixing, fighting cartels in various sectors, including bread, petrol, and cigarettes. He opened South Africa’s first hypermarket, in Boksburg in 1975. No career of this length is without its mistakes; Ackerman failed twice to enter the Australian market – although he’s hardly alone in that – and passed up the opportunity to buy both Checkers and OK Bazaars. While a lifelong fan of centralised distribution, he was reluctant to commit to investing in it for years, and the business had to play catch up. But on his death Pick n Pay is turning over in excess of R105bn annually, and the Group operates more than 2,200 stores in eight countries.
Comment: At the end of the day, he is remembered as a transformative and principled business leader, a philanthropist, and all-round mensch. Hamba Kahle, Chairman Ackerman.
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In Brief Spin sponsor
Winning on the international field of play this week is Checkers, whose kit sponsorship of the national rugby team debuted to wild acclaim in Marseilles last Sund … what? Checkers wasn’t the official kit sponsor? Then why … oh, never mind. Moving on, not unrelated, Food Lover’s Market has stepped into the big leagues with a two-year food sponsorship of the Sharks. “We understand the power of building a community through sport and our sponsorship and support of The Sharks into 2025 further indicates our commitment to the (KZN) region,” says CEO of Food Lover’s Market retail Travis Coppin. In return, from the 2023/2024 season, the Food Lover’s Market logo will appear on the Sharks’ playing shorts. Finally, blowing up on the socials, Woolies whose launch of upmarket takes on amagwinya (vetkoek) and dombolo (steam bread) was attended by the usual wry South African commentary on TikTok and X (the platform formerly known as Twitter). “The private school ones,” remarked at least one commentator. “Magwineth Paltrow” said another. “I can’t taste the struggle” complained a third. More earnest critics questioned the nutritional claims Woolies was making, while others wondered where this left informal traders who depend on these staples for turnover.
Comment: If we of Mzansi could bottle and sell our national sense of humour, well, there’d probably be a sudden crippling shortage of the stuff, come to think of it.
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International Retailers One day aisle be famous
Walmart does not readily shy away from a celebrity tie-in. Drew Barrymore flogs her range of kitchen equipment at the big box behemoth, which also stocks legendary country vocalist Patti LaBelle’s Pies and Cobblers, and rapper Master P’s Rap Snacks cheese puffs. To this impressive haul it has added frozen lines from downscale chef Guy Fieri and upmarket culinary psycho Gordon Ramsay. And Andrew Zimmern of “Bizarre Foods”, who became famous unironically showing Americans the bizarre things other people eat, is now in the aisles of a store where America famously puts its crazy on display. Over the pond in Blighty, meantime, original celeb chef Jamie Oliver has teamed up with Tesco to promote healthy eating in a collab entitled the Little Helps Plan, which will focus on making healthy choices more visible, convenient, and affordable in all Tesco stores. Oliver will be Tesco’s health champion, suggesting “helpful little swaps” consumers can make to increase their nutrition while still enjoying the foods they love.
Comment: Who can tell the price of fame? But the profits, now…
MANUFACTURERS AND SERVICE PROVIDERS
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Diplomat South Africa Future Perfect
According to our friends and colleagues over at Diplomat South Africa, the distribution system is long overdue an overhaul. Shoppers and consumers today desire comfort, convenience, a large selection and quick delivery. Distributors are under enormous pressure to adapt and offer a smooth, personalised experience and the distributor of the future must have a complete full-service model at the heart of its strategy. These distributors will offer comprehensive solutions in addition to just product distribution. This extends to marketing assistance, demand forecasting, and even direct-to-consumer distribution channels. They will provide value at every stage of the supply chain by developing into true partners with manufacturers and retailers. Sustainability won’t just be a catchphrase; it will be central to how businesses operate. Expansion of direct-to-consumer (DTC) models by FMCG distributors will have them increasingly look towards DTC channels in order to react to changing consumer needs and behaviours. Success in this field will depend on building dependable online platforms and last-mile delivery capabilities. And they will depend heavily on collaboration with producers, merchants, and tech companies. These strategic partnerships will improve shopper and consumer experience overall, streamline business processes, and enable quick response to market changes.
Comment: For more on the distributor of the future, have a read of this essential article.
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Tiger Brands It’s a jungle out there
The Striped One is actively pursuing a bigger stake in the spaza market, with plans to increase the marketing and supply of its products in this resilient sector to drive demand among lower-income South Africans while growing its share of the informal economy. In areas where there are no wholesalers, it will deliver directly to stores, while dealing with wholesalers both large and small where they do trade. “With the local informal market remaining largely untapped and statistics showing that it is growing at a faster rate than the modern trade, we see exponential room for growth in this segment and are engaging closely to support our traders and better present our brands to consumers at the point of purchase,” says chief customer officer Luigi Ferrini. Tiger currently has 170 products suitable for spazas, with only about 27% of these available at any given time. Tiger Brands plans to have these ranges available in 150,000 spaza stores in five years; currently they’re available in 46,500 spazas. Plans include branded fittings and fixtures in store, and murals and paintings outside of the stores. It has provided an app to drive orders from traders.
Comment: A comprehensive and timely strategy, the execution of which will require some energy.
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In Brief Into the fire
A victory this week for Fry’s, maker of plant-based foods, which has won its appeal against the Food Safety Agency (FSA) and the Red Meat Industry Forum (RMIF) in objection to a direction issued by the FSA last year that declared the naming and labelling of six of Fry’s products in contravention of South Africa’s Processed Meat Regulations. “This labelling debate is indicative of the important role plant-based foods will play in the food systems of the future,” says Rogan Moore, MD for LIVEKINDLY Collective Africa who produce, market, and distribute Fry’s in SA. Next, a marketing coup this week for SAB, which through Castle Lager has bailed out the SABC to ensure that the national broadcaster is able to televise key matches of the 2023 Rugby World Cup. Finally, Ardagh Glass Packaging Africa, formerly Consol Glass, has invested R3.3bn in South Africa over the last two years and aims to build the largest container production plant in Africa. It currently runs four facilities, in Bellville, Clayville, Nigel and Wadeville, and produces around five billion glass containers every year – with the aim of making as many of them as sustainably as possible.
Comment: Congrats to Fry’s: plant-based foods are subject to savage PR and legal attacks from Big Meat globally as more and more consumers sign on for healthier and more planet-friendly alternatives.
TRADE ENVIRONMENT
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The Economy A thousand words
For almost two decades now, Trade Intelligence has provided the most comprehensive snapshot of South Africa’s economic indicators as they pertain to grocery spending and this great industry we call home. This month they present a patchy picture. GDP was up just +0.6% for the second quarter, compared with +1.9% last year, and it’s forecast to come in at +0.4% for the year. On the other hand, CPI was only +4.7% for the month of July, well within the government’s targeted 3-6% range, although food prices were up +9.9%. This left the prime interest rate at a not inconsiderable 11.75%. Unemployment for the second quarter, by the expanded definition which includes discouraged workers, was 42.1%, and consumer confidence unsurprisingly 25% down for second quarter. Add these all up and divide by the number of supermarkets, and you left with -0.9%, or the decline in retail trade sales for the month of June.
Comment: Not a great picture, if illuminating. And you can see it for yourself over here.

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“Rugby is great. The players don’t wear helmets or padding; they just beat the living daylights out of each other and then go for a beer. I love that.”
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