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Food & Beverage News

Tongaat's sale of its starch business to Barloworld to proceed

By: Tasneem Bulbulia     22nd September 2020 An independent expert Rothschild & Co has determined that a material adverse change (MAC) has not occurred in the proposed sale of Tongaat Hulett's starch business to Barloworld subsidiary KLL Group. Tongaat in February agreed to sell the starch business to the Barloworld subsidiary for... 

SAPA lauds refocus on poultry master plan

By: Donna Slater     22nd September 2020 Despite the serious impact of the Covid-19 pandemic on the local poultry industry, the South African Poultry Association (SAPA) welcomes the renewed focus on the Poultry Industry Master Plan, and praises Trade, Industry and Competition Minister Ebrahim Patel and Agriculture, Land Reform and Rural... 

PAPE Fund 3 acquires 45% equity in DDS Group of Companies

By: Tasneem Bulbulia     17th September 2020 Midcap South African private equity fund PAPE Fund 3 has successfully acquired 45% of the equity in the DDS Group of Companies, an African beverage dispensing and refrigeration services provider. The DDS Group of Companies provide beverage dispensing and refrigeration services on behalf of the... 

PE port loads last shipment of bumper 2020 citrus export season

By: Donna Slater     15th September 2020 The last official specialised reefer (refrigerated container) fruit vessel calling to load citrus from the Eastern Cape through the Port of Port Elizabeth's multi-purpose terminal, docked at the port this week. The MV Lady Rosebud docked at berth 10/11 on September 13 to discharge 45 empty... 

PE port loads last shipment of bumper 2020 citrus export season
MV Lady Rosebud loaded with the last South African citrus exports of the 2020 season

Master plan starts to encourage poultry sector expansion

By: Marleny Arnoldi     15th September 2020 South African poultry producers have pledged to invest R1.7-billion towards expansion and improvement of productive capacity in the country. Some investment projects have already been completed, including the expansion of a hatchery and processing facility which created 428 jobs.  

Master plan starts to encourage poultry sector expansion

Real-time data essential in FMCG market

By: Cameron Mackay     11th September 2020 With the Covid-19 pandemic having led to a change in buying patterns, fast-moving consumer goods (FMCG) value chain solutions provider MACmobile MD Andrew Dawson suggests that the FMCG industry will have to use intelligent digital technology data to curb the negative impact this could have on the... 

Real-time data essential in FMCG market
ANDREW DAWSON We still need clarity on disposeable incomes across different consumer brands, it’s unclear if we’re going to see see a shift to more basic staples

Manufacturing continues on downward slump

By: Simone Liedtke     10th September 2020 Manufacturing production decreased by 10.6% year-on-year in July, with the largest decline in furniture and other manufacturing, which declined by 39.1% and contributed -1.4 percentage points to the overall decline. The second highest decline was in motor vehicles, parts, accessories and other... 

Competition Tribunal dismisses case against I&J

By: Tasneem Bulbulia     7th September 2020 The Competition Tribunal has dismissed a case of alleged cartel conduct against processed frozen foods company Irvin & Johnson (I&J) owing to a lack of evidence. The Competition Commission had accused I&J and beef processing company Karan Beef of allegedly dividing markets in the supply of... 

SPAR Group announces leadership appointments

By: Donna Slater     4th September 2020 JSE-listed household goods distributor SPAR Group, which is a member of SPAR International, with a footprint across 48 countries, has appointed Brett Botten CEO and Graham O’ Connor nonexecutive chairperson, following the retirement of Mike Hankinson. The effective dates for the changes will be... 

SPAR Group announces leadership appointments
SPAR CEO Brett Botten

Libstar grows interim revenue despite supply chain, consumer demand challenges 

By: Marleny Arnoldi     2nd September 2020 JSE-listed fast-moving consumer goods holding company Libstar has delivered robust interim results, with revenue increases reported for household and personal care products, as well as some food categories, despite Covid-19 impacts. Libstar recorded a 1.9% year-on-year growth in group revenue... 

Libstar grows interim revenue despite supply chain, consumer demand challenges
Libstar CEO Andries van Rensburg talks interim performance and outlook for remainder of 2020

Sea Harvest records stable interim results in face of pandemic

By: Tasneem Bulbulia     31st August 2020 JSE-listed Sea Harvest Group reported a stable set of interim results for the six month ended June 30, with a 7% increase in revenue to R2-billion and headline earnings a share of 61c, in line with the prior interim period. The group says this was achieved despite the worst pandemic in over a... 

Sea Harvest records stable interim results in face of pandemic
Felix Ratheb

RCL Foods leverages diverse portfolio for resilience amid ‘unprecedented hardship’ in South Africa

By: Simone Liedtke     31st August 2020 JSE-listed consumer goods company RCL Foods leveraged the resilience of its diverse portfolio to finish the 12 months to June 30 in a strong cash position, delivering revenue growth of 7.4% in a period of “unprecedented hardship for South African consumers and the local economy”. Underlying... 

RCL Foods leverages diverse portfolio for resilience amid ‘unprecedented hardship’ in South Africa
RCL CEO Miles Dally

Bidcorp revenue declines as a result of Covid-19 measures 

By: Donna Slater     26th August 2020 Food distribution company Bidcorp recorded net revenue of R121.1-billion for the financial year ended June 30, representing a 6.3% decline from the R129.3-billion in revenue reported for the 2019 financial year. Its gross profit margin, however, increased to 24.1%, up from 23.9% in the 2019... 

Bidcorp revenue declines as a result of Covid-19 measures
Bidcorp operations and financial performance impacted by Covid-19-hit consumer markets

DTIC, Wesgro to host virtual wine mission to South Korea

By: Creamer Media Reporter      26th August 2020 To enhance bilateral trade and investment ties, the Department of Trade, Industry and Competition (DTIC) will, in collaboration with trade promotion agency Wesgro, host a virtual wine mission to South Korea. The event, to be held on August 27, will showcase ten wineries from the Western Cape region. 

Alcohol industry commits R150m to harm-reduction programmes

By: Simone Liedtke     20th August 2020 The South African alcohol industry has committed R150-million to direct harm-reduction programmes over the coming year. The investment is to focus on upscaling existing programmes and finding new, innovative measures to deal with key areas of concern, including drinking and driving or walking,... 

Fuelled by consumer demand, Tetra Pak takes steps to green processes and products

By: Donna Slater     18th August 2020 Food processing and packaging manufacturer Tetra Pak is taking steps to better align itself with the demand for more sustainable and environment-friendly packaging solutions. Tetra Pak president and CEO Adolfo Orive says the company has, over the course of 2019, witnessed awareness and... 

Libstar's retail, wholesale business achieves revenue growth as food service business struggles amid Covid-19

By: Marleny Arnoldi     18th August 2020 JSE-listed fast-moving consumer goods holding company Libstar managed to grow its revenue from its retail and wholesale business segment by 10.7% during the six months ended June 30. The company’s businesses in this segment were able to operate for the entire duration of the national lockdown... 

Nestlé South Africa achieves Level 3 BBBEE certification

By: Tasneem Bulbulia     17th August 2020 Food and beverage producer Nestlé South Africa has received its Level 3 Broad-Based Black Economic Empowerment (BBBEE) certification. This rating was attained after a thorough verification process by Mazars – the South African National Accreditation System (Sanas) accredited rating agency. 

Tiger Brands progresses disposal of its value-added meat products business 

By: Tasneem Bulbulia     17th August 2020 JSE-listed Tiger Brands, through its wholly-owned subsidiary, Tiger Consumer Brands, has entered into two separate sale of business agreements (SBAs) for the disposal of its value-added meat products (VAMP) business units as going concerns. The two SBAs comprise an agreement with Molare, in... 

Alcohol industry welcomes lifting of alcohol sales ban, counts losses

By: Donna Slater     17th August 2020 Both stakeholders in the South African alcohol industry and wine industry representative organisation Vinpro have welcomed government’s decision to lift the ban on alcohol sales as part of the move to Alert Level 2, which comes into effect at midnight on Monday. Vinpro states that the wine... 

Technology to mitigate water- treatment challenges

By: Mc'Kyla Nortje     14th August 2020 The 2030 Water Resources Group - hosted by the World Bank - held a webinar last month to showcase three international technologies that can help the food and beverage sector rise above business continuity challenges amid diminishing resources within the sector. The webinar included partners such... 

Technology to  mitigate water- treatment challenges
DECREASE USE The food and beverage sector faces increasingly stringent environmental legislation, with the consequent need to drive water demand down to a minimum

Vacuum packaging increases fresh food shelf life

14th August 2020 Fresh foods such as meat, sausage, fish, and cheese are usually vacuum packaged at a pressure of around five millibars. At this pressure, the oxygen content in the remaining residual air is so minimal that the activity of various microorganisms is prevented. 

Vacuum packaging increases fresh  food shelf life
SEALED SHUT Typical R5 rotary vane vacuum pump from Busch for use in chamber packaging machines

Outsourcing key utility services could benefit food sector

14th August 2020 A possible consideration for food manufacturers to consider during these challenging economic times is the outsourcing of key utility services, which impact an operations’ power consumption and capital investment decisions, says industrial refrigeration services and solutions service provider... 

Company provides support for food sector during pandemic

14th August 2020 Engineering solutions specialist BMG provides critical engineering support to ensure safe and efficient food and beverage production and handling during the Covid-19 pandemic, says BMG group product and sales manager Mark Barbour.  BMG’s solutions for the sector extend from processing, where raw... 

Company provides support for food sector during pandemic
RAISING STANDARDS BMG works closely with the food and beverage sector to raise hygiene standards throughout the food and logistics chain

Collaboration improves quality of products

By: Mc'Kyla Nortje     14th August 2020 Continuous engagement with original-equipment manufacturers (OEMs) and end-users has allowed roller chain specialist KÖBO to continuously improve the quality and designs of its products, which meet the stringent hygiene and health and safety requirements of the food and beverage industry, says... 

Collaboration improves quality of products
RESEARCH AND DEVELOPMENT KÖBO also has a continuous improvement programme, which entails doing research and introducing new products to the market

Liquor sales ban mounts pressure on agricultural commodities

14th August 2020 Since the initial ban on liquor sales, owing to Covid-19 regulations, there has been an accumulation of supply of raw materials, some of which could not be stored for extended periods and which also did not have any export opportunities, highlights agriculture industry body Grain SA. Alcohol is... 

GBK Restaurant meets July revenue target

By: Tasneem Bulbulia     13th August 2020 JSE-listed Famous Brands says it is satisfied with the operational performance of the GBK Restaurant stores that are trading. In an update to shareholders on August 13, it said 37 of the 62 GBK stores in the UK were open and offering delivery, collect and dine-in service. 

Nestlé launches initiative to tackle youth unemployment

By: Donna Slater     12th August 2020 Food and beverage company Nestlé is offering 100 young people an opportunity to join its newly established virtual internship programme as part of the organisation’s ongoing interventions aimed at reducing youth unemployment, across the East and Southern Africa region (Esar). The virtual... 

EU liquor trading partner puts pressure on South African govt to lift alcohol ban

By: Marleny Arnoldi     11th August 2020 In a statement, the liquor industry of South Africa has acknowledged the concerns raised by SpritsEurope around imbalances in trade between South Africa and the European Union (EU), owing to the continued ban on alcohol sales. The EU is South Africa’s biggest trading partner and the economic... 

Coca-Cola changes Sprite packaging to increase recycling

By: Tasneem Bulbulia     7th August 2020 The Coca-Cola Company in South Africa has stopped the production of Sprite’s iconic green packaging to produce fresh, new clear polyethylene terephthalate (PET) plastic bottle packaging. The transition to clear packaging means that more Sprite bottles can be collected, recycled and reused to make... 

Mobile factories reduce time, costs

By: Cameron Mackay     7th August 2020 Agricultural processing equipment supplier Dryers for Africa supplies containerised processing factories fitted with agricultural dryer units which enable clients without access to a factory to buy a mobile factory with the required components and equipment prefitted, reducing installation costs... 

Mobile factories reduce time, costs
ACCESS TO INFRASTRUCTURE Small-scale farming can be encouraged to provide produce for the containerised factory, which comes prefitted with dryer units

Agri SA joins call for alcohol ban to be lifted

By: Tasneem Bulbulia     6th August 2020 Industry organisation Agri SA has noted its concern about the impact of the current alcohol ban on the entire alcohol value chain. It says South African Breweries (SAB) is the only beer producer that procures almost all of its input ingredients locally, and the impact of the ban on the sale of... 

Astral Foods says chair, CEO have recovered from Covid-19

By: Donna Slater     5th August 2020 Poultry producer Astral Foods reports that its chairperson Dr Theuns Eloff and CEO Chris Schutte have both recovered from Covid-19. The company announced on July 16 that Eloff and Schutte had contracted the disease, following which Eloff self-isolated and received medical treatment. 

Alcohol industry welcomes positive response from Treasury on excise tax deferment

By: Simone Liedtke     4th August 2020 The alcohol industry has welcomed the positive response from the National Treasury to its request for a deferment of excise tax on alcoholic beverages. In response to the industry’s request, Treasury has proposed a 90-day deferral for the payment of excise taxes on alcohol to be made in August... 

Consol halts R1.5bn expansion project amid low demand

By: Tasneem Bulbulia     4th August 2020 Manufacturer Consol Glass has indefinitely suspended construction of a new R1.5-billion glass manufacturing plant in Nigel, Gauteng, owing to the reduction in demand for glass products. The company attributed this reduced demand to the Covid-19 pandemic and government’s actions to slow its... 

SAB reconsidering capex projects worth billions amid alcohol sales ban

By: Simone Liedtke     3rd August 2020 South African Breweries (SAB) has cancelled R2.5-billion of scheduled investments that were earmarked as part of its yearly capital and infrastructure upgrade programme. These funds were previously scheduled as part of its capital allocation programme for this financial year, while an additional... 

SAB reconsidering capex projects worth billions amid alcohol sales ban

Alcohol industry welcomes SAMRC's call to lift alcohol ban

By: Donna Slater     3rd August 2020 Stakeholders in the alcohol industry welcomed a recent call by the South African Medical Research Council (SAMRC) for government to start preparing for the lifting of the ban on the formal sale of alcohol. According to the alcohol industry, the call made by SAMRC president Dr Glenda Gray and... 

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