A seven-year haul through the courts of the land and Clicks has at last been dealt the blow it feared, by a five-four majority of the Constitutional Court, which ruled last week that it may no longer earn its keep as both a seller and a manufacturer of pharmaceuticals. This means that, in all likelihood, it will have to divest itself of its interest in Unicorn Pharmaceuticals, a relatively tiny outfit that brings to market 39 generic medicines stocked by Clicks. A complaint was brought against Clicks in 2016 by The Independent Community Pharmacy Association (ICPA) which argued that the arrangement created a conflict of interest, as Clicks pharmacists would be more likely to recommend medicines manufactured by Unicorn than its competitors. The Department of Health will determine how to sanction the company and while it does have the power to divest Clicks of its pharmacy licences, the sale of Unicorn is viewed as a less drastic and more likely alternative.

Comment: Unicorn is small fry in the Clicks pond of private label products. Its loss is probably more significant from a legal standpoint than for Clicks’ bottom line.

In the past four years, Pick n Pay has reduced the volume of food waste in its operations by 28%, with a target of 50% by 2030. Thus far, the business has also successfully donated over 880 tons of edible surplus food with a value of over R35m to NGO FoodForward SA. While donations and recoveries account for much of the saving, none of this is possible without data. The business has also invested in an innovative waste management dashboard which provides a consolidated view of its waste activities. “This has dramatically assisted in improving recycling, increasing waste resource donations and reducing waste to landfill,” says Vaughan Pierce, Executive: ESG. “We have set ambitious targets to reduce food losses at our operations and along production and supply chains. This helps us lessen our impact on the environment, but also contributes to business efficiencies.”

Comment: Waste reduction – whether in food that’s past its best or empty trucks on our overburdened freeways, is the first frontier of sustainable business.

First stop, Shoprite, whose k’nect mobile cellular network has slashed prices by more than 35% and is now South Africa’s lowest cost data provider, with a GB costing you as little as R19.50. “Shoprite is South Africa’s low-price champion, and that extends to our growing suite of fintech products which is driven entirely by customer needs,” says Jean Olivier, General Manager: Financial Services. Next up, also Shoprite, which launched its much-heralded UNIQ clothing store in Cape Town’s Canal Walk shopping centre last week. Like the similarly named and logo’d Uniqlo in other climes, Shoprite’s offering is focused on premium basics, and provides a welcome hedge against load shedding: while the clothes do seem cool, they do not require refrigeration. Finally, SPAR, still under reputational and legal attack from the Giannacopouloses of Eshowe. This time the family has named a pair of SPAR execs in a criminal complaint of fraud and perjury relating to the manner in which they allege their massive operation was ejected from the Group.

Comment: We can’t help feeling there’s a deal at the end of this litigious road. But likely an expensive one for SPAR.

Big news from RCL FOODS which has agreed to sell its Vector Logistics business to AP Moller Capital for a cool R1.25bn in ongoing efforts to streamline its portfolio. “RCL FOODS (has) revised its strategic focus towards unlocking growth in the value-added consumer brands component of its business through sharper strategic focus and active investment,” RCL said in 2020, announcing the unbundling of its value-added brands from its poultry and logistics operations. Vector Logistics specialises in frozen logistics for RCL FOODS and numerous third parties, providing them with multi-temperature warehousing and distribution, supply chain intelligence, and sales and merchandising solutions. “We see a growth opportunity for Vector Logistics, and we believe that our experience and our network will help to drive this growth,” says AP Moller Capital partner Joe Nielsen.

Comment: Bit of a shake-up in the supply chain there. One assumes a lengthy contract was attached to the deal.

Big up to Pepsi for its logo revamp, the first in 14 years, with a return to the classic red, white and blue wave of old, a chunky retro typeface, a more electric blue, and a sophisticated midnight treatment for the zero sugar variants. It slays on t-shirts and will be a powerful tool in the ongoing slog against rival Coca-Cola. Next, sticking with beverages, Mini and Redbull have established the country’s first solar-powered electric vehicle charging station in Cape Town, in keeping with their respective commitments to sustainability, and as the latest initiative in an ongoing 17-year collaboration. And finally, still with beverages, Diageo has appointed COO Debra Crew to replace Sir Ivan Menezes as CEO. With her appointment, women will make up more than 50% of Diageo’s executive committee.

Comment: An example many of our own fine businesses would do well to follow.

South Africans eh. Give us mealies and we will make pap. Give us farmers and we will make wors. Give us load shedding and as it turns out, we will make electricity with our bare hands if we must. According to political trend analyst JP Landman, the next five years or so will see investments of around R1.5tn in generation, much of it renewable. There are currently 17 different investment projects in renewable energy under way, most in the private sector, and load shedding could be a thing of the past by the end of 2024 thanks to the 18,000MW created. The 5,000MW of renewable energy and battery capacity planned by the end of this year or early in 2024 will reduce load shedding by 61%. Goodness knows we need some good news this week, because the dear old South African Reserve Bank has lowered its growth forecast for the year to +0.2%, even as it ups the interest rate by 50 basis points. An end to load shedding, says Landman, will increase productivity and bring better growth.

Comment: It may be that load shedding proves to be the gift that we didn’t know we wanted. We live in hope.