Next year, Clicks’ ClubCard loyalty programme, launched in 1995, will turn 30. A little pre-emptive celebration this week as it cleaned up tidily at the South African Loyalty Awards, achieving two wins, in the categories of Best Strategic Use of Data Analytics / CRM Applications, and Best Use of AI to Improve Loyalty Experience. It was also ‘highly commended’ in the categories of Gamification, Retail Programme of the Year, and Best Long-term Programme, which was won this year by FNB’s eBucks. “Based on our vast data set, we understand who our customer is and their shopping preferences, and therefore know what service or products to offer them. Through ClubCard, we reward customers with cashback, discounts and promotional offers, but also for being loyal to us and our partners,” says Chief Marketing Officer Dr Mel van Rooy. ClubCard was pipped in the Retail category by Shoprite’s Xtra Savings programme, which will surely provide an incentive to reclaim the title next year.

Comment: Succeeding in tech-based categories like data analytics, AI and gamification are encouraging signs that ClubCard has kept fresh and relevant and does not intend to rest on its laurels.

One of the interesting features about the rise of Dis-Chem has been its vertical integration of the pharmaceutical value chain, from financial services, to medical services, to wholesale, to actual product. And part of its growth strategy, following the lead of South Africa’s major retailers, is to take an increasing stake in warehousing and distribution. Hence its recent acquisition, with the blessing of the Competition Tribunal, of Columbia Falls Properties 7, which houses its DC and head office, and to whose owners Dis-Chem has been paying around R4.6m monthly. “The transactions allow Dis-Chem to own three of its five distribution centres and achieve a reduction in rental expenses incurred outside the group,” it said. “The ownership of the assets ensures that the group holds the necessary strategic assets for long-term growth.”

Comment: Ownership of one’s DC is a cornerstone of empire. Just ask Shoprite.

Big congrats this week to the team of analysts, marketing folk, management, and support staff who put together the annual Trade Intelligence Retail Conference, in partnership with Smollan, where key FMCG and retail industry players gathered to share insights, strategies, and forecasts amid a, shall we say, challenging market. Four key themes emerged from the day’s discussions: shopper-centricity, the importance of collaboration, the growing role of data and technology as enablers, and informal trade as the new frontier for growth. Regarding the second of these, the day itself was a testament to what our industry can achieve with a little bit of collaboration: senior figures from both suppliers and retailers – and a good few from the support industries – shared strategic if not competitive insights. Dylan Piatti, MD Africa at Advantage Group International, perhaps put it best: “The more you know about how your trading partners feel about the relationship, the more you can do.” His presentation on evolving retailer-supplier dynamics highlighted how real-time engagement and mutual trust are crucial to forging strong partnerships that can weather tough economic conditions.

Comment: For much more on this excellent event, have a look over here.

How are things going over at AVI, you ask? Not too shabby, all things considered. At a shareholders’ presentation last week, CEO Simon Crutchley gave us to understand that while revenue growth came though at a relatively muted +6.3% to R15.86bn, operating profit was up +21.7% to R3.3bn. Breaking it down by division, Entyce Beverages saw a recovery in tea, with good growth in both coffee and creamers, Snackworks benefited from selling price increases and efficiencies, partly offset by volume declines, I&J saw some of the worst catches in 20 years and lower abalone profits; Personal Care saw growth in the core business and better margins, while Footwear and Apparel, having enjoyed strong sales in December, had a rough second half, with constrained demand and price pressure from competitors.

Comment: With its diversified portfolio, AVI provides an interesting snapshot of how things are going generally in this great industry we call home.

Continuing its evolution into a mighty South African brand this week is Rhodes Quality, with the launch of its Cape Malay Style Tomato and Onion in Curry Sauce canned tomatoes variant. “We’re continuously providing our consumers with innovative, new products and introducing a local favourite into the mix is another way we’re giving our consumers more wholesome goodness in a can,” explains Head of Marketing Maria Soares. Next, a trading update from Oceana, which reports that the business performed well in the 11 months to 25 August, with US subsidiary Daybrook benefiting from higher fish oil sales volumes and record dollar prices. At home, Africa fishmeal and fish oil sales volumes declined by -16%, while Lucky Star sales volumes dropped -2% from their record-breaking comparable period last year. In the wild caught seafood unit, hake sale volumes increased +31% on the heaving briny back of more favourable fishing conditions. Moving on: Nestlé is selling iconic Cremora coffee creamer brand to French multinational Lactalis, as part of a “strategic decision to sharpen business focus”. Finally: storm in an eggcup over at Quantum Foods, where a shareholders rebellion led by 18%-owner Country Bird Holdings failed at the post at last week’s extraordinary meeting, with a touch over 50% of punters voting to keep the current board as is.

Comment: Fortunately, Cremora will still inexplicably be found on the top of refrigerators nationwide, for the foreseeable future.

A word from the bearded sages at StatsSA, who have let it be known that manufacturing production volume increased by +1.7% YoY in July. Readers of this chronicle will be pleased to know that our own great sector – represented as Manufacturers in Food and Beverages – came absolutely galloping through at the head of the field, growing a massive +9.5%, presumably on improved business and consumer sentiment. But, generous in victory, we should not forget the hardy men, and indeed women, of the Metals and Machinery trades, whose output rose by +5.2% YoY. Nor, indeed, should we neglect to spare a thought for the toilers in the Motor Vehicles, Parts and Accessories and Other Transport Equipment division with the largest negative contribution, recording a fall in production of -12.1%. There is a flip side, however, seen in manufacturing sales (in rand terms), whereby Food and Beverages recorded the second-highest decline at -1.6% between May to July 2024 versus February to April 2024; this against an overall increase of -0.2%.

Comment: Looking back at the figures, manufacturing volumes produced still fall short of 2019’s pre-pandemic levels, but one hopes that they are finally on the up. An interesting case study in the dynamics of supply and demand.