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According to Checkers, it is now cheaper to have groceries delivered via its Sixty60 service than it is to hop in the jammie and do the shop yourself – a fact confirmed by no less an authority than the Automobile Association (AA) itself. Checkers has determined that the average Sixty60 customer saves 33% on fuel and vehicle running costs by shopping via the app and paying the R35 delivery fee. In other Checkers news, the business is taking the battle for Woolies’ market share behind enemy lines with the opening of its new format Checkers Foods supermarket in Franschhoek, a first for the Fairest Cape. With a nod to the surrounding architecture, the 1,000m² emporium offers such delights as exclusive brands Forage and Feast and Simple Truth; a Meat Market with primo poultry and beef; a bakery with artisan breads; an eventual wine and cheese cellar; and a Starbucks.

Comment: Innovation, consolidation, domination. Shoprite – and with it Checkers – has become an unstoppable force in South African retail.

Congratulations to Woolworths, whose 18-months Mature Cheddar, made for the Dapper One by Lactalis South Africa, was named Dairy Product of the Year at the 189th South African Dairy Awards, out of a field almost 1,000 strong. Congrats also to Raymond Ackerman, who saw his lifelong dream of competitive pricing for petroleum partially fulfilled by the government’s decision to put a price cap on 93 octane petrol from 1 June, allowing retailers to sell it for less. In 2018, you will recall, he saw Pick n Pay achieve a measure of success when the Smart Shopper loyalty programme started partnering with BP to offer cashback for fuel purchases. Next, Coronation Asset Management now owns 15.05% of SPAR shares after the acquisition of a beneficial interest in the business last week. Finally, Massmart’s troubled Game chain will be upping its affordable homeware, erm game, with the relaunch of the category in its stores, at a time when South African punters seem to have a growing appetite for such goods.

Comment: Well done indeed to Chairman Ackerman the Senior, a lifelong champion of inexpensive gasoline.

In the US, grocery chains are going gangbusters, generating a +200% increase in new leases in 2021 year-on-year, reinvesting the bumper profits brought about by the COVID pandemic. Chief among these has been Aldi, which opened 88 US locations last year and added 2.2 million square feet of space. Related, over in France, Carrefour is partnering with venture capital firm daphni to invest in digital retail start-ups as part of its plan to step up e-commerce expansion around the world over the next four years. In the UK, Tesco is urging customers to continue to buy their fresh produce which has been coated in the fine red Saharan dust which spread itself over the fields of Spain and elsewhere last month. Finally, in the biggest victory for organised labour in perhaps a century, the staff of Amazon’s JFK8 warehouse in Staten Island, New York City, have voted narrowly to unionise, in the face of stiff opposition and the worst that union-busting consultants could throw at the problem.

Comment: Carrefour is one for our retailers to watch, particularly as they establish a bridgehead in East Africa.

We don’t often concern ourselves with the affairs of holding companies, because, like wizards, “they are subtle, and quick to anger.” But Remgro owns a fair-sized chunk of this great industry we call home, so it’s worth a look in every now and then. Right now, it seems, it’s exercising its subtle intelligence on the issue of RCL FOODS, in which it owns an 80.4% stake. And it looks like they may be sticking there for a bit, rather than relieving the lesser shareholders of any of their stock. While RCL had a great set of results, with headline earnings up +26% to R519m, the business gets 20% of its wheat from Russia and 5% from Ukraine, so input costs are likely to come under significant pressure in the months ahead. And the rising fuel price (see Trade Environment, below) doesn’t help either, logistically speaking. Remgro might want to consider orchestrating a merger between RCL and spreads business Siqalo Foods, further diversifying RCL’s portfolio of grocery brands and achieving further efficiencies among its holdings.

Comment: With holdings in RCL, Distell, BAT and Grindrod Logistics, Remgro cuts a wide swathe across our sector, and its movements require close scrutiny.

Buying itself a stake in the future of the planet this week is Tiger Brands, whose Venture Capital Fund has made its first investment in Herbivore Earthfoods, a business specialising in the manufacture and sale of plant-based and vegan products. Woman-founded and based in the Mother City, Herbivore markets a line which includes dairy-free milk alternatives and desserts, confectionery, and protein alternatives, affordably priced and accessible to South Africans across the economic spectrum. Tiger Brands and investment partner Secha Capital will use their considerable experience in the food and beverage sector to help grow and scale the business. “We are proud to invest in the Herbivore team because they have been persistent early innovators in the category and their success has shone through in their product range and market adoption. We’re equally proud of the impact the business has by being 7x more water-efficient and producing 90% fewer greenhouse gas emissions than animal-based products”, says Secha honcho Kuhle Mnisi.

Comment: Visionary stuff, Tiger, of the sort we’ll need if we’re to have a future on this embattled blue green orb that is our only home.

Rising international oil prices, driven by the geopolitical turmoil stemming from Russia’s attack on Ukraine, do not bode well for South Africans who were already paying 32% more year-on-year for petrol and diesel at the start of 2022. These high costs will show again on the shelves as they filter through to the price of goods and services, or in margin pressure for wholesalers and retailers. As a short-term measure National Treasury and the Department of Mineral Resources and Energy have implemented a two-phase approach to manage the fuel price increase. Under phase 1, a general fuel tax has been cut by 150c until the end of May, with the lost R6bn in tax revenue to be recouped through the sales of strategic crude oil reserves. Phase 2 could include a 3c/l reduction in the basic fuel price and the end of the 10c inland levy, inter alia. In other news of inflation, the Competition Commission has announced plans to launch a study on rising produce prices, which will scrutinise seed and fertiliser companies, the country’s major farmers, and distributors.

Comment: For more on the likely effect of fuel price increases on our industry, have a look at our very comprehensive and detailed South African Economic Report.