THIS ISSUE: 27 Jan - 02 Feb
YOUR NUMBERS THIS WEEK
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Woolworths The news about the news
Now that the ASA has found against Woolies on the grounds of plagiarism, it’s time for some opportunistic breast beating. In the past couple of weeks, we have run some typically dry column inches about the Frankies saga, suggesting perhaps unfairly that Frankies was being a little oversensitive and pointing out that stealing ideas from other markets was accepted practice among South African businesses. Someone who has more commendably taken up cudgels on behalf of the little guy, however, is Moneyweb’s Alec Hogg, who has made something of a crusade of the issue, reporting inter alia on conversations reputedly held between Woolworths and Chill Beverages, the supplier who made their own-label vintage soft drinks.
Comment: We still have our reservations about how Frankies is handling it all, though. They seem to be becoming professional victims rather than custodians of a national brand built on more positive values.
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Pick n Pay Indigenise this!
Pick n Pay is busily opening stores in Zimbabwe, including a large one in the old Jaggers warehouse (wasn’t that the setting for an episode of Scooby Doo?) and has plans to convert some of its TM Supermarkets there to Pick n Pays pending approval by the Zim Competition Authorities for the increase of its stake in TM from 25% to 49%. TM, you may recall, is the biggest contributor to the coffers of the venerable Meikles group of businesses, which has interests in hotels, retail and agriculture, posting a 36% increase in revenues to $136,6million in the most recent financial year. It is also a champion – possibly a pragmatic one – of the indigenisation regulations, with a $6million staff empowerment plan in place to make it fully compliant with the BEE of Uncle Bob.
Comment: Not the first place one would think of going, PnP. But it is conveniently close to Longmeadow.
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Massmart Stok ‘em high
If it is your intention to pick up some of the estimated R44billion forked out annually by South Africa’s 800 000-odd stokvels, with their 11million-plus members, you could do a lot worse than emulate the example of Massmart, specifically the legendary Jumbo Crown Mines. Crown Mines has about 800 registered stokvels, and it gives them the treatment: orders by fax or phone, a picking and packing service to minimise delays and separate till points for their exclusive use at collection time. Or delivery, for that matter, to a designated area where members gather for the distribution of the swag. Not to mention a 20-25% saving that their buying power brings to purchases. More broadly, Massmart focuses on stokvels in which large groups aggregate their money to buy in bulk and then divide up their purchases rather than the several other variants of the same.
Comment: Stokvels are one of the better inventions of our shall we say chequered history.
MANUFACTURERS AND SERVICE PROVIDERS
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Imperial Logistics Good morrow, sirrah!
Some years ago, we engaged the services of Kings Transport to shift our little all from a rented point A to a purchased but much smaller point B. Their livery was themed in a regal but cheerful blue and gold, and the service was well up to scratch. Now in a completely unrelated development, they have gone and been acquired by Imperial Logistics, sticking with the general theme of royal dynasties, for an undisclosed although presumably princely sum. According to Crown Prince Marius Swanepoel 1, the reigning monarch of Imperial Logistics, the acquisition will help Imperial better serve customers who moved less than full-truck loads from source to market. For its part, Kings will be able to offer its own loyal subjects an end-to-end logistics solution, which is apparently quite the thing these days.
Comment: Comment: The unwashed masses of the Johannesburg Securities Exchange thronged the mall as the happy couple trotted by, sending the share price northward by 2%.
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Nestlé Twisted logic
In Australia, Nestlé have developed an easy-opening Nescafé Gold jar – easy to hold, a click-and-lock screwcap and easy-to-peel foil – specifically for the needs of sufferers from arthritis, hot on the heels of the Accessibility Benchmarking Scale they launched with Arthritis Australia last year. The initiative is part of a global ‘Inclusive Design’ initiative spearheaded by Cambridge University, which provides tools for businesses looking to provide frustration-free packaging for the use of punters of all ages and abilities. Nestlé is the first F and B business to jump in.
Comment: You can fish where the fish are. Or you can develop products that they are able to open with their little finny hands, or something. Nice one, Nestlé.
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Kraft Explosives, the diminutive packaging thereof
When Kraft bought Cadbury’s last year, there was some speculation as to what they saw in the fusty English choccie maker. Now all at last may be revealed: Cadbury gives Kraft the ability to get small-pack treats into emerging markets in Asia and Latin America. Now don’t get us wrong – Kraft is already doing brilliantly in Brazil, where it has turned its Lacta chocolate brand into the market leader with a 37% slice of the excitable Latino giant. But its success there has largely been in formal retail – and the real Reals, as it were, are to be made in mom and pop shops, where the poorer punter prefers a pint-sized pack, and where Cadbury had already made inroads with brands like Trident and Halls.
Comment: Those small packs again, eh. Next week you’re getting a 30 word Tatler, tops.
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Social Media Kind of a contradiction in terms
Some of those critical facts from this year’s World Wide Worx Survey:
- Twitter up from 88,000 users in 2010 to over 1.1 million users in 2011, of whom 40% are Gareth Cliff.
- Facebook up from 2.8 million users to over 4.2 million users, of whom 40% are your mum.
- LinkedIn up 83% to 1.1 million, of whom 40% list their current occupation as “Updating my LinkedIn Profile”
- MXit down from 17 million users to just over 10 million. Thank God and BBM.
Comment: That social media strategy we asked you to have a look at a couple of months back – we’d like it on our desk at 8 sharp tomorrow.
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Shares, or something Bloom! It blow up!
OK, we can’t possibly hope to understand it, but it sounds grim, so we’re just going to quote it directly from Bloomberg, who we are assured knows this sort of thing, whoever he is: “Five companies in the MSCI South Africa Consumer Staples Index including Shoprite Holdings Ltd. and Massmart Holdings Ltd. are rated the lowest among peers in 36 countries, according to more than 3,800 recommendations compiled by Bloomberg. The gauge, which rallied 23 percent in the past six months, may fall 2.3 percent within 12 months, according to share-price estimates.” Specific gripes are that Massmart’s slash and burn policy on prices may negatively impact on earnings, while Shoprite may be negatively affected by the general slowdown in consumer spending.
Comment: As far as we can make out. And who the rest of the five might be, Mr Bloomberg declines to say.
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SABMiller You’re my best pal … what’s your name again?
In keeping with its current enthusiasm for making buddies around the world, SABMiller is forming a strategic alliance with Turkish Brewer Anadolu Efes for Turkey, Russia, the CIS, Central Asia and the Middle East. Anadolu Efes makes and markets beer, malt and soft drinks in those reputedly rollicking markets.
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Shoprite Then the booing became hissing and we called in the water cannons
And here’s a little illegal uncut gem from Malawi: “The ongoing industrial strike by Shoprite workers in Lilongwe took a dramatic turn on Wednesday when the protesting staff booed interviewees who were coming out of the premises.” If that’s what is considered drama in an industrial action, we’d like some of what they’re having.
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