South Africa’s 22 million pets consume as much as R8bn in food, treats, bedding and accessories annually (presumably not all of them consume their bedding.) Shoprite, with an eye for the main chance and a slice of this lucrative market, opened its first clunkily-named Petshop Science store in April 2021 – the first of the big retailers to get into standalone Pet – and hasn’t looked back since, with 100 now trading after the addition of a spanking new one in Glen Marais, Kempton Park. Petshop Science now has a presence in all nine provinces, and offers premium pet food, treats, toys, and veterinary-approved essentials from renowned local and international brands such as Hills, Montego, Dog’s Life, Eukanuba, Ultra Dog, Royal Canin, Rogz, Nandoe and Small Batches. “Petshop Science’s rapid expansion accentuates the increased demand for specialised pet care, complemented by expert advice from knowledgeable employees,” observes Shoprite’s Chief Operating Officer Willem Hunlun.

Comment: An obvious move, executed at scale and with characteristic efficiency.

A cautionary tale this week from Dis-Chem which has removed from its shelves the Sol de Janeiro line of products that is majority-owned by posh French fragrance brand L’Occitane. The range was launched by Dis-Chem amid much fanfare, having found popularity on Tik-Tok, and sold out so quickly that eager punters had to be put on waiting lists. Now, Dis-Chem is investigating whether its supplier has sold it fake products after some shoppers complained that the fragrance of the body mist a) was dissimilar from the same product brought overseas and b) wore off quickly. “As a precautionary measure, and pending further investigation, a decision was made to postpone the restocking of Sol de Janeiro products from its shelves,” read a statement from the pharmacy chain. Estimates put the size of South Africa’s counterfeit market at hundreds of billions of ZAR, and despite endless seizures by the South African Police and other authorities, it seems that nothing will serve to stem the tide – and even major businesses may be susceptible.

Comment: A blight on the economic landscape, driven by brand obsession and credulity.

Congrats this week to Moegamat Reeza Isaacs on his appointment as CFO of SPAR. Isaacs comes with a solid pedigree, having served as group finance director of Woolworths Holdings Limited from 2013 to 2023. He succeeds Mark Godfrey in the job. Moving on, staying with SPAR, the retailer has removed from its shelves all units of the Namibian-produced Top Score vanilla-flavoured instant maize porridge after claims that three children in the Eastern Cape had died after eating the cereal. “As a precautionary measure, we have made the decision to temporarily withdraw all Top Score Instant Porridge products from the market while an investigation is underway,” said producer Namib Mills in a statement. Related, the Consumer Commission (NCC) will be conducting an independent investigation into recalled Checkers Deli Hummus products following the detection of Listeria in three batches of the product. In happier news, the Competition Commission has recommended the approval of Shoprite’s outright acquisition of Pingo Delivery, the JV it set up with RTT in 2022 to manage the logistics behind Sixty60.

Comment: If Shoprite is planning the acquisition, there’s a good chance it makes business sense. Right on.

To the UK, where Tesco has announced growth in sales excluding fuel of +4% to £31.5bn for the six months through August. This it attributes to a relentless focus on price at a time when punters in that damp archipelago are under pressure as they are elsewhere, and paradoxically to the success of their Finest premium private label ranges, which grew sales almost +15% YoY. Tesco cut prices on more than 2,850 products by an average of about -9% over the period. “The combination of price, quality and innovation means we are as competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years,” says CEO Ken Murphy. Sticking with Tesco, the business has launched a new e-commerce initiative, Transcend Retail Solutions, which will help international supermarket chains develop their online operations. The business, which competes directly with robo-retailer Ocado, has secured its first partnership with New Zealand’s largest grocer, Foodstuffs North Island.

Comment: Shrewd moves all round, with some ideas for our own great sector.

Last Wednesday, the good and the great of South Africa’s beer industry met for the third annual, slightly portentously titled, ‘State of the Beer Economy’ event. This year, the event was held at the Caledon Farm Research & Development Facility in the Western Cape, where SAB showcased its contribution to the agricultural economy. “Beer is not just a beverage of moderation; it’s a critical driver of economic growth. By empowering our value chain, including commercial and small-scale farmers, we are not only strengthening our supply chain but also investing in South Africa’s future through our agricultural impact,” said CEO Richard Rivett-Carnac, who also noted that SAB’s commitment to local sourcing had resulted in 95% of the company’s raw materials being sourced locally – including 324,000 tons of barley in 2023, and 230,000 tons of non-GMO maize. 38,000 households are supported by the beer sector, with large beer producers like SAB playing a key role. The company has also invested in building and expanding its two commercial barley malting facilities in Alrode and Caledon and its hop processing facility in George.

Comment: We wish someone had told us that beer was the beverage of moderation back when we were 18 or so. Because that was not our experience at the time.

“I am a professional confectioner,” read the complaint to the Advertising Regulatory Board (ARB), “And this slab in NO WAY resembles the flavour it claims to be.” The anger was palpable, a burning righteous rage that what was advertised on the outside bore an insufficiently accurate resemblance to what the wrapper contained, which in this case was a slab of Beacon Heavenly Milk Tart. The attorneys of Beacon parent Tiger Brands were stern men and women of the law, however, and argued with passion and conviction that the flavour was meant to “evoke the experience of a milk tart, but not overwhelm the chocolate taste entirely.” Finding against the Professional Confectioner, the ARB acknowledged that in this case, the creamy texture and hints of cinnamon were deemed sufficient to meet reasonable consumer expectations.

Comment: We don’t know whether the flavour of the bar in question evokes the experience of Sunday afternoon tea in our Ouma’s dimly lit voorkamer, but we do know that we’ve never met a melktert whose flavour could overwhelm that of milk chocolate. Or any kind of chocolate actually. Or milk.

Can you believe it’s that time again? Our monthly roundup of the indicators that describe the dear old South African economy, as compiled by the excellent analyst team at Trade Intelligence. First up, GDP, which grew a modest +0.4% for the second quarter, driven by finance, manufacturing, trade and electricity, gas and water. Next, the dear old ZAR which averaged R17.61/US$ for the month of September, 7.1% stronger than last year, largely due to the US Federal Reserve cutting the interest rate. Next, CPI, which at +4.4% is below the +4.5% midpoint of the Reserve Bank’s targeted range and the lowest it’s been for three and a half years. Hence, the happy decision by the above-mentioned Bank to cut the repo -25bps to 8.0% at their September meeting, which puts Prime at 11.5%. And also hence, the slight uptick to 38 in the RMB/BER Business Confidence Index for Q3, which means that 38% of senior business execs are satisfied with business conditions.

Comment: For more from this invaluable resource, have a look here.