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Food & Beverage News

Bleak outlook for packaging, reports research company

16th October 2020 According to the 2019/20 Packaging Overview report released by full-service research company BMi Research in August, South Africa’s packaging industry could decline by more than 9% in 2020 as a result of severely impaired disposable income following the national lockdown enforced as a response to... →

Acquisition expands provider’s range of wrapping solutions

By: Mc'Kyla Nortje 16th October 2020 Acquiring Finnish stretch-wrapping machine manufacturer Octomeca in 2018 has allowed Switzerland-based packaging supplier FROMM Packaging Systems to expand its product offering to the packaging industry. Octomeca offers horizontal and vertical film-wrapping solutions, which enable the company to... →

WRAPPING IT UP The OMC-V2000 machine is indicative of FROMM’s innovative approach to ensuring the highest possible level of product protection and load securing

E-commerce spurs single-use packaging

By: Mc'Kyla Nortje 16th October 2020 The growth of the e-commerce industry has led to demand for protective and branded packaging, says sustainable packaging solutions provider Mielie Mailer cofounder and MD Trent Pike. Unlike warehouse-to-store fulfilment – usually by road, with consignments usually packaged in bulk format of about... →

RECYCLED WINE BOTTLES Company develops packaging solution that is plastic-free and made from recycled wine bottles

Famous Brands' British burger chain GBK enters administration

By: Reuters 14th October 2020 British-based restaurant chain Gourmet Burger Kitchen (GBK) has entered administration, South African owner Famous Brands said on Wednesday, becoming the latest victim of brutal trading conditions in the face of Covid-19. Administrators have been appointed and have assumed control of GBK and its... →

Rio Tinto, AB InBev sign MoU to deliver sustainable, low carbon aluminium cans

By: Simone Liedtke 6th October 2020 Beer drinkers will soon be able to enjoy their favourite brew out of cans that are both recyclable and responsibly produced as a result of a global partnership between diversified miner Rio Tinto and brewer Anheuser-Busch InBev (AB InBev). The two companies have signed a memorandum of... →

Tiger Brands' Olifantsfontein abattoir disposal finalised

By: Simone Liedtke 30th September 2020 South African packaged goods company Tiger Brands has successfully disposed of its abattoir business at Olifantsfontein to Molare Proprietary Limited for R100-million. The acquisition has become unconditional, Tiger Brands confirmed in a statement on September 30. →

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... →

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. →

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... →

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 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 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... →

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 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 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... →

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. →

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... →

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... →

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... →

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

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