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.