Pick n Pay is planning on opening 120 stores in the next two years, including outlets in Zambia, Mauritius and Mozambique, and on increasing its investment in Zimbabwe, where TM Supermarkets needs an injection of around R167millions in fresh capital. PnP currently owns 25% of TM, which has 53 stores across Zim, and was recently reported (in these crisp pages, for starters) as being about to increase its stake there to 49% – an option apparently not finalised but still on the table. Stores in Mauritius and Mozambique are mainly franchised, while the corporate structure in Zambia is mainly locally-staffed, so no worries on the human-power side. The Big Blue will be using Unitrans and Transit for logistics requirements during the rollout.

Comment: Despite recent uncharitable asides from various analysts, Pick n Pay seems to be in active and positive regrouping mode.

BP’s Express stores are the preferred destination for people in the 19-22 age bracket with inexplicable late night cravings for cigarette papers, snack food, and energy drinks. In a recent survey by HDI Youth Marketeers, BP scored 22.9% as the preferred garage brand for young adults, with Engen coming in at 21.8%. On the downside, BP scored on 16.1% among non-driving 8-13 year olds, who much preferred the cheerful red and blue livery of Engen, at 24.4%. There’s some thinking that this might have something to do with Engen’s eye-catching “multi-brand” approach, with Quikshops, Corner Bakeries, Equatorial Coffees and of course our own dear Woolies.

Comment: Of note is that BP and Engen rated a creditable 9th and 10th overall in the entire grocery stores category.

Despite some muttering about whether the whole thing was going to have any impact at all on sales, retailers are catching that Ayoba spirit, whatever it is, and stocking items like suntan lotion, headache tablets and energy drinks ahead of the big palaver sometime in 2010, uh, in a week’s time. Clicks, for example, is bringing in R20million worth of extra suncare, and double the usual amount of headache tablets, painkillers and energy supplements. It will also be keeping stores near stadiums open later. Game is going large on folding chairs, winter blankets and seat pads, of which it expects to sell 2000, and Makro and Game are both stocking up on gaming and entertainment goods, in anticipation of those long school holidays.

Comment: Go and play in the garden, dad’s trying to work ... OK just one level then.

Second-biggest drug business Adcock Ingram’s turnover rose 7% to R2billion in the six months to March, with profit before tax up 9% to R546million, which just goes to show how good pills can be for you. It has earmarked a whacking R1.3billion for capital expenditure, and intends growing its business beyond our borders, in both developed and developing countries, with a view to eventually realising 30% of its revenue here. And don’t lose sleep about all that wedge – Adcock have R918million in cash, just sitting under the mattress. Adcock have grown their market share in both government tenders and over the counter business, where they have gained 9.7% in value over the six months.

Comment: So the battle for the bathroom cupboard between Adcock and Aspen heats up...

Rainbow’s revenue for the difficult year to March rose 2.1% to R7billions, with profit after tax up 12% to R355million. Like all chicken producers, Rainbow has been hit hard by job losses at the lower end of its market, but unlike others, it has a secret weapon up its cunning sleeve: its portfolio of value-added and crumbed products, which trade briskly among more affluent consumers. In ’04, for example, added value contributed 30% to turnover, while in FY2010 it had grown to 46%. In the retail (as opposed to the catering and fast food) market, this climb was even more pronounced, from 4% in ’04 to 21% in ’10. Tellingly, growth in fast food slowed in the year just gone.

Comment: A giant of the industry, but nimble on its feet.

Sugar barons Tongaat Hulett lifted profits by 28% to R1.6billions in the 15 months (being different) to March, and is planning on going even larger in the 15 months to come, with planned increase in production of 25% for a mountainous total of 1.90million tons. Much of this will come from Mozambique, which just goes to show what the absence of civil war can do for a place. Zim is also a contender, with profits from the tow factories there up to R576million. Certain stern analysts have pointed out that on the home front, Tongaat is at only 70% capacity. Interestingly, almost all of the group’s sugar is sold locally.

Comment: We always thought that James Michener should have written a 2kg page turner about Tongaat Hulett. We’re just saying.

The dear old Consumer Price Index (CPI) fell to 4.8% year-on-year for the month of April, confounding analysts who thought it would drop to only 5% from 5.1% in March. The culprits here were durable and semi-durable goods, and also food, which at 0.9%, down from 1.3% in March, is looking dangerously like deflation to nervous retailers, who as you know have always managed to put away a little extra by buying forward and squirreling away the difference in a jar on the pantry shelf. Certain economists, tugging at the fraying sleeves of their tweed jackets, have shiftily predicted that inflation could end the year at around 5.1%.

Comment: Or 5.2%. Or 8.73%.

Dis-Chem is learning the joys of being a big player at the hands of SACCAWU, who are planning a strike over recognition and wages. The union is demanding a minimum wage of R3500 and a 15% increase across the board as well as various other rights, and cites the 7% increase of sales across the pharmacy retail sector in FY2010 as justification for the increase.

Naughty Nestlé has been accused of “biopirating” South Africa’s genetic resources, by applying for five patents on products – or processes – for the treatment of hair and skin conditions and inflammatory disorders. Apparently government permission is required for the sort of research which would have led to the development of this IP. Which infringes upon the rights, one supposes, of the descendants of the Kaapse nooi who first rinsed her hair in an infusion of the fragrant twigs back in 1757. Come on.

Sneaky SAB have sent out a pamphlet to taverners, kindly suggesting that they up their prices on Amstel, in order to make a decent profit on the upmarket amber liquid. The problem, as you so rightly pint out, is that SAB no longer own Amstel, do they, and aren’t strictly speaking in a position to have an opinion in this regard. Amstel recommend to taverners that they sell a quart for R100, on which they make a R1.50 profit. Castle Lite, on the other hand, carries an RSP of R9.50, for a profit of R2.50.

Unilever has been awarded the 2010 Advertiser of the Year Award at the Cannes Lions International Advertising Festival, for “embracing the creativity and innovation that has driven the powerful work that its agencies produce,” according to festival chair Terry “Terry” Savage. Unilever, our regular readers may remember, continued to invest handsomely in marketing during the recession. Nice one, that grand bleu feller.