
THIS ISSUE: 11 Mar - 19 Mar
At a time of crisis, the FMCG community has a unique role in ensuring that society, as we know it, continues to function. We have often remarked that our sector is the customer-facing side of an economy, and right now, it’s our responsibility to ensure that our supply chain is functioning, that our shelves are replenished, and that our customers and staff are kept as safe and healthy as possible. We also need to model humanity and a sense of calm, and to encourage these attitudes in consumers – as Pick n Pay are doing, for example (see below). We should look for ways as a community to collaborate and come together in service of our customers rather than using the situation exclusively to our own competitive benefit.
We should also acknowledge that with this outbreak, it’s not business as usual, and in fact might never be – when this pandemic passes, as it will, some things might be better, but everything will have changed. After a shock to the system like this, shoppers will be shopping differently, prioritising new categories, and exercising greater discernment in others. Changes we make in response to this emergency will have ramifications for how we do business in the years and even decades ahead. As always, those of us who invest now in resilience will succeed in better days.
Information is critical at a time like this. Part of our role as Trade Intelligence is as a producer and channel of information. We place resources such as our website, our mailing list and the ‘Trade Tatler’ at the disposal of the industry every day – but particularly now in this time of crisis. If there’s anything you need to say to your trading partners and the industry at large during this time, please do not hesitate to reach out to us. Hang together, and enjoy the read.
RETAILERS AND WHOLESALERS
-
Coronavirus Pulling together
A bit of a COVID-19 roundup. Clicks has announced that it will freeze the prices on all of its sanitary products for the duration and will take measures to ensure that its shelves are quickly restocked with these products during this time of high demand. They’ve also established a daily training programme for store staff and pharmacy managers on virus awareness and hygiene information. Shoprite has convened a special executive level task committee to ensure adherence to existing operational policies affecting employee and customer well-being and the supply chain, with response plans across the business to cover contingencies including supply chain disruption, product sourcing, additional hygiene and cleansing procedures, and education on prevention. Pick n Pay are encouraging online shoppers to make their purchases “wisely and kindly”, the best advice we’ve heard for a while. Comment: Right. Time for all retailers to put out statements of what they are doing to keep their supply chains running, their customers served and their staff safe during this time.
-
-
International Retailers Lidl Irish Devil
In the United States – wealthiest country in the world, and home to a particularly rapacious breed of vulture capitalism – some of the biggest retailers, including Walmart, Target and Kroger, are refusing to give their workers paid sick leave, prioritising short-sighted incremental gains for shareholders over the well-being – even safety – of their staff and their shoppers. This is the very definition of unsustainable business. Over to Northern Ireland, in slightly muted celebration of St Patrick’s Day, a Lidl concept store in Dundonald has applied for a licence to open a pub. If the concept proves successful, they might roll it out elsewhere in the UK. Finally, to Thailand, where Tesco has chosen the CP Group to buy its 2,000 stores for the princely sum of $10bn. The Group already operates – get this – 12,000 7-Elevens in that convenience-loving country.
Comment: Subject of course to the usual permissions.
-
Fry’s High Fryers
Venerable – yet of course still innovative – South African meat-alternatives outfit Fry’s has been invited to join a new global plant-based food collective, The Livekindly Co., launched in New York with a $200m round of funding. Livekindly’s members – right now, only Fry’s and German crew LikeMeat – are united in their commitment to bringing non-GMO, plant-based meat alternatives to increasingly eager consumers. Another partner, Puris Holding, produces plant-based ingredients, giving the collective some verticality, which is extended by the presence of Livekindly Media, a source for thought-provoking and inspiring content embracing a plant-based, sustainable, and compassionate lifestyle. The collective is headed up by Kees Kruythoff, ex of Unilever, and both Wally and Debbie Fry are part of the leadership teams.
Comment: Fantastic work, Fry’s – a global innovator and now a global force in this planet-saving movement.
-
-
Rhodes All Rhodes lead to Bentonville
The Rhodes Food Group, like so many other South African businesses, was not having a heckuva year, with its relatively newly listed share dropping -19% on slowing consumer demand in our very rough economy. Enter Minister of Trade and Industry, Ebrahim Patel, and Walmart International CEO, Judith McKenna, who met for a little apres-ski at Davos a year ago and together established that South African manufacturers might be worth a look for the retail giant’s offering. Accordingly, Walmart met with 18 local businesses last September, and established that seven had that elusive quality known as “export potential”. They were I&J (abalone and seafood), AVI (Freshpak Rooibos tea), Vinimark (wine), Distell (wine), Green Farms Nut Co (macadamia nuts), Glenart (Christmas crackers), and Rhodes (canned pears). Rhodes are now listed, and will be exporting 425g cans of pear slices in heavy syrup, 425g cans of pear halves in juice, and 850g cans of pears in heavy syrup to Walmart. And their share has jumped 7% on the news.
Comment: Excellent work Rhodes, which we flagged as a player some years ago, you might recall.
TRADE ENVIRONMENT
-
The Economy Oh Captain, my Captain
Just a few weeks after pulling off the best State of the Nation Address that could be expected, President Ramaphosa had to take to the podium again, this time to address an even bigger challenge. Again, under the circumstances, he did the best job possible, restricting travel to and from risky geographies, closing ports of entry and schools, restricting the size of public gatherings. He also announced a stimulus package for an economy facing a slowdown in demand from our Chinese, European and other global trading partners, and a decline in international tourism. The president’s measured tones and the raft of measures soothed markets somewhat, with a brief strengthening of the embattled rand shortly after the speech. Another glimmer right now, however dim, is the prospect of a rate cut from the Reserve Bank next week, influenced by the looming crisis and the modest rate of inflation.
Comment: Worrying times. But we could be in worse hands than the steady ones of Cyril and his economic team.

Subscribe to the Trade Tatler to get an up-to-date overview of what is happening in the SA and international FMCG industry
“After all it really is all of humanity that is under threat during a pandemic.”
Tatler Archive
- 2023
- 2022
- 2021
- 2020
- 2019
- 2018
- 2017
- 2016
- 2015
- 2014
- 2013
- 2012
- 2011
- 2010
- 2009