Into Africa – Choppies ups the ante

Into Africa – Choppies ups the ante

Choppies’ expansion programme in Southern Africa and East Africa is in full swing

Choppies Enterprises Ltd is expanding its presence into new regions as it recently begun operations in Namibia. The grocery retailer is also gaining market share in South Africa. Namibia is the eighth country in the Southern African region where Choppies expanding its operations.

Currently, the group has operations in Botswana, South Africa, Zimbabwe, Zambia, Kenya Tanzania and Mozambique. Choppies Enterprises Ltd is listed on both Botswana Stock Exchange and the JSE.

During the six months to end December the group opened 33 new stores, to take its total to 235 stores in the continent, the company said recently. This number is compared to 31 December 2016.

It generates 40% of its revenue in Botswana and it reports in Pula currency. In the results, it reported a 22% increase in revenue to P5.8billion (R7.15bn), while gross profit was up by 23% to P1.1bn.

Despite the subdued economic environment in the country (Botswana), we maintained our market share and continued to improve our efficiencies,” the group said.

In South Africa, the group said significant improvement in the North West stores resulted in like-for-like revenue growth of 43%.

This growth has brought us to profitability in this region and we expect this trend to continue in the second half of financial year 2018.

“Segmental revenue increased by 43% and earnings before interest, tax, depreciation and amortisation (EBITD) was up by 33.5% compared to the corresponding period,” the group said.

In South Africa it is taking on retail giants Shoprite and Pick & Pay, which have also been expanding their presence in the rest of Africa.

In KwaZulu-Natal Choppies acquired a further eight stores effective from November 1, 2017. “Increased benefits of scale and other efficiencies will improve further as we expand our footprint in this region.” The total retail space for the group increased by 17%to 340 973 m².

Zimbabwe also recorded encouraging improvement, and the company said it continues to perform better in that region despite the depressed economic conditions. “Revenue grew by 25%and EBITDA by 12% as compared to last year.

It said overall performance had improved in the other regions, but it had yet to achieve profitability.

The opening of new stores and distribution centres in other regions is in accordance with strategies adopted by the board. In the six-month period, three stores were added in Zambia,” the group said. The group did not declare a dividend as it declares it once a year on annual results.

Food for thought: How big is the Recycling Industry?

Food for thought: How big is the Recycling Industry?

South Africa’s waste industry is massive and diverse covering a wide range of different sectors and industries. Shopping centres, restaurants and all forms of retail are expected to – and indeed are – playing an ever increasing and responsible role in the recycling of food and other waste to international standards.

This article aims to provide our readers with the Bigger Picture of recycling in order to instil a better understanding of the importance of recycling at every level.

In terms of job creation the recycling industry is growing rapidly. A mere twenty years ago there was no recycling industry and now it appears that in terms of employment it will shortly be bigger than the waste management industry.

Few people are aware of the difference between the industries let alone the complex structures involved. The waste management industry collects and transports waste to various locations, usually landfills. It is capital intensive because of the high cost of purchasing or leasing specialized vehicles. On top of that are high maintenance and labour costs. It survives on high volumes and low margins.

In the main, the recycling industry avoids the capital costs and is generally manpower intensive instead. It might be more efficient to use imported equipment but our markets are too small and the distances too great to make it viable. Besides, we have an abundance of labour and a shortage of jobs.

The latest statistics show that the waste management industry employs 29 833 people and generates more than 15 billion turnover per annum*. The recycling industry presently employs fewer people and generates less turnover. But all that is changing.

The formal recycling sector comprises: collectors, wholesalers, traders, processors, consultants, and specialists in every material. This diverse group of people in turn support an industry which builds and maintains equipment such as bins and balers. Financiers and investors are involved as are some lobby groups. Not only is the industry diverse in skills but also in approaches to business which range from government to private to informal.

Some specialist recyclers, like Smart Waste, are expanding their services assisting organizations obtain permits and licences, develop chains of safe custody and design and implement their own recycling programs and waste management plans

Collectors vary from large companies, which recycle on sites and operate recycling facilities, through many smaller companies – often operating bakkies with a few labourers – and include street and landfill pickers. Middlemen operate buyback centres, and large warehouses where cardboard, paper and plastic are delivered by large trucks to be baled and shipped off to factories.

Others re-engineer the materials, recycling old glass into new glass, converting plastic into re-engineered pellets, clothing, tables and chairs and a host of other products. Polystyrene is transformed into roof tiles and picture frames.

Farmers recycle large portions of their product not sold and convert grape seed into oil. The commercial sector is becoming more adventurous in finding ways of disposing of expired products and by-products. Food and engine oil can be reprocessed or converted into bio-diesel. Wood can be repurposed into all manner of articles.

Traders make up an important part of the industry, buying and selling excess waste products. There is an online trading platform which works very well. Researchers collect and analyse data and put out papers. Some events and conferences are aimed solely at the recycling industry.

Steel is the easiest material to collect and recycle and scrap yards require a section for themselves. Having been around the longest, scrap yards operate independently and don’t generally associate with the rest of the recycling industry.

There are areas of specialization: vermiculture (worm farms), composting and pyrolysis. A new comer is fly farming as well as a waste to energy plant. Some people find ways of recycling dog faeces and a myriad other materials.

The majority of the recyclers are already organized into industry bodies and others are in the process of doing so. These bodies offer platforms providing support, information, training and market intelligence to their members and the public.

What makes it difficult to calculate the numbers employed in the recycling sector is the informal sector. This may be defined as those people who are unable to work in the formal sector or who choose not to. Never mind their status they provide a service – not only in SA but in large parts of the world.

With so much innovation and the energy being put into recycling world-wide it makes sense that the government sees recycling as a major opportunity for job creation. The number of jobs as well as the fact that the jobs are suited to unskilled workers and women make it an ideal job creation target.

There are several consultants and lawyers who specialize in the environmental laws, licenses and permits. Some specialist recyclers, like Smart Waste, are expanding their services assisting organizations obtain permits and licences, develop chains of safe custody and design and implement their own recycling programs and waste management plans.

The large number of players raises the question whether the sector is already overcrowded. In some areas it is; too many players chase the same few clients. However, economic cycles aside, the sector is still growing strongly as a result of a growing population, a growing middle class and an awareness that everyone needs to recycle and not waste any more.

Taken as a whole the recycling industry is huge and growing. Watch this space.

*GreenCape Waste Economy Market Intelligence Report 2017

Shopping centres need to buy into compliant fire-prevention strategies

Shopping centres need to buy into compliant fire-prevention strategies

Imagine a fire breaking out in a densely-packed shopping centre. Are you sure you know where the nearest emergency exit is, or even if that particular shopping centre has the necessary equipment and evacuation planning in place? ASP Fire CEO Michael van Niekerk argues that many shopping centres are not compliant in this regard at all.

ASP Fire CEO Michael van Niekerk

With about 13 shopping centre fire-risk evaluations under his belt to date, van Niekerk is well-placed to comment on the regulatory and health-and-safety requirements for smaller shopping centres in particular, such as strip malls. He comments that the main reason that many of these smaller malls are not compliant is either because they were built a long time ago, or have had tenants leave and new ones move in.

The average shopping centre is very much an environment in flux, van Niekerk adds. However, if anchor tenants occupy a space in excess of 2 500 m2, then sprinkler systems have to be installed. Another problem in terms of fire risk is that, with constraints on storage space, retailers often exceed the stacking-height limitation. “We also find that basic requirements such as the correct number of fire hydrants and fire-hose reels are not adhered to.”

The recognition time for a fire in a shopping centre is 30 seconds to five minutes

Even if fire-hose reels have been installed, the length of the hoses themselves is often inadequate, especially if the effective radius of the reel is obstructed by racking and shelving, for example. Proper fire-detection systems are therefore the first, and best, line of defence for shopping centres in terms of fire prevention.

If you do not detect a fire in time, and cannot evacuate people fast enough, it can be a major issue resulting in fatalities,” van Niekerk warns. Shops larger than 250 m2 in area are required to have manual fire-detection systems in place, while shops in excess of 500 m2 require automatic fire detection and emergency evacuation systems. This also needs to be linked to the shopping centre’s building management system, so that patrons and other tenants can be forewarned timeously in the event of any emergency.

Even if such systems are installed, the fire panels are usually either faulty, or the emergency indicators are ignored. This leads to the critical issue of smoke ventilation, which is mandatory for any enclosure larger than 500 m2. It is essential that such smoke is contained to at least 2.5 m above the highest occupied level, in order to allow evacuees to see where they are going, and for there to be sufficient oxygen as well.

Van Niekerk points out that the recognition time for a fire in a shopping centre ranges anywhere from 30 seconds to five minutes. This means that clearly-demarcated evacuation routes are essential. Buildings without sprinkler systems have to allow for evacuation within 45 m, while the common escape path in multi-storey buildings is 30 m. This escape path increases to 60 m in buildings that are equipped with sprinkler systems.

Many shopping centres do not comply with basic fire protection requirements

Emergency routes have to have concrete floors and roofs and brick walls, with fire doors giving access to these protected thoroughfares. Buildings of more than three storeys require two emergency exit routes. If a designated area has more than 60 occupants, push-bar panic bolts are needed for such fire doors.

Van Niekerk highlights that such emergency doors are often either locked, or protected by additional security doors that themselves are locked, thereby preventing escape in the event of an emergency. It is a legal requirement that such exits remain unlocked or, if they are locked, can be opened with a single movement. Security doors may be installed, but have to be locked in the open position while the building is occupied. Another hazard is that emergency exits are often used as areas for storage overflow, while in-store branding can obscure emergency signage.

We also find that occupants tend to respond better to a verbal command than what to a siren, which means it is an excellent idea for a shopping centre to have a functional public-address system in place,” van Niekerk points out. In addition, it is important that all staff are trained in emergency evacuation procedures, and familiarise themselves with the general layout of the shopping centre so they can assist evacuees in the event of an emergency.

Another regulation is that shops within malls are to be separated by fire walls, which have to extend to the underside of the roof itself. In terms of glass shopfronts, the glass edges have to be separated by at least 1 m to prevent flames from jumping the gap between shops. “Shops often do not comply in this regard because they are simply separated by dry walling, or brick walls that extend to ceiling height,” van Niekerk points out. Any ceiling voids higher than 800 mm require fire-detectors to be installed if the shop is equipped with a fire detection system, as well as void sprinklers if there are sprinklers installed in the mall.

ASP Fire is able to conduct fire-risk assessments and Rational Fire Designs for shopping centres in order to determine whether the actual fire load exceeds the installed fire-protection system design. “We are able to advise a client accordingly, and assist them with a suitable fire-protection strategy and system design to cater for the likely worst-case scenario that could be faced in the course of normal operations,” van Niekerk elaborates. ASP Fire offers turnkey fire protection projects, which means it can also supply, install, and maintain fire-protection equipment in buildings.

Retailing Moonshine: Silver Creek Distillery launches new craft gin duo

Retailing Moonshine: Silver Creek Distillery launches new craft gin duo

This craft spirit exudes the raciness of the 1920’s Prohibition Era

South Africa’s one-of-a-kind Silver Creek Craft Distillery has just launched two new craft gins produced in the same style as gins of America’s notorious Prohibition era.

As with the already-famous range of fine, roof-liftin’ ‘shines, Prohibition Craft Gin and Prohibition Pink Gin are handmade in small batches – distilled to fine spirit from carefully selected grains.

Mark Taverner

Prohibition was a ban imposed on liquor through the campaigns of America’s ultra-conservative Temperance Movement of the early 1900s,” says Silver Creek Craft Distillery founder and chief distiller Mark Taverner. “The ban in 1920 created a very fertile environment for the illegal liquor trade and many entertaining tales of gin-making by the light of the moon and lively underground “speak-easies”. Business flourished for gang bosses and the likes of Al Capone made a fortune during this time. By today’s measure, it is estimated that he would have been worth over R16-billion.

Prohibition only lasted for 13 years, ended by overwhelming objection. As you can imagine, this was time to party and everyone rose to the occasion. To this day, its death knell in 1933 is widely celebrated.

To salute those who fought so gallantly to have the law revoked, our Prohibition Gin is made in the same traditional style as back then,” says Taverner.

We like to think of this particular style of gin as helping folk dance since 1933!”

In setting off on the gin trail, Silver Creek’s distillers put their minds to making a clear craft gin in the New World style – fresh, crisp and happy; not too dry and infused with traditional botanicals of juniper, coriander, lemon, angelica and cinnamon. “These would have been used in the time of Prohibition,” says Taverner.

The resulting Prohibition Craft Gin, bottled at 43% alcohol, is a versatile spirit ideally suited to be further enhanced with botanicals, fresh fruit and herbs and good quality craft tonics. In the glass, Prohibition Craft Gin offers the immediate impression of balance with a fresh, crisp burst of citrus followed by lingering juniper and a hint of cinnamon. Citrus is again prominent on the dry palate, gently supported by the taste of juniper. The finish is defined by a crisp, clean smoothness that lingers with an earthy character.

The Prohibition Pink Gin, also at 43%, is Silver Creek’s Craft Gin further infused with raspberries and blueberries, with a touch of hibiscus flowers and rose water. The result is a refreshing drink that is both aromatic, flavoursome and romantic.

To us, the aromas of Prohibition Pink Gin conjure up images of an exotic eastern bazaar. There’s tantalizing sweet Turkish delight and crushed pepper corns,” says Taverner. On the palate, it offers a fine balance of sweetness, spice and zest that follows through in a long, satisfying finish.

Both new Prohibition Gins are sold in a distinctive traditional bottle, complete with finger-loop for easy carrying.

Tucked away in an old mine building in Gauteng’s Randfontein, the state-of-the-art Silver Creek Craft Distillery does everything by hand – from mashing and fermentation to distillation and bottling. This process allows for extra special care, which is why every bottle is signed by the distiller.

It quickly rose to fame last year with the launch of Silver Creek Distillery’s moonshines, boosted by a five-medal victory at the 2017 Michelangelo International Wine & Spirits Awards.

The unique Southern Moonshine collection of high-quality sipping drinks is led by the flagship Clear Shine; and, Charred Shine, which is similar in flavour to a good bourbon. Alongside them, there’s a range of flavoured ‘shines: Apple Pie Moonshine; Bon Fire Moonshine, with a zip of hot cinnamon; Salted Caramel Moonshine; Chocolate Moonshine and the all new Margarita Moonshine.

The new Prohibition Gins retail at around R360 a bottle and are available at selected bars, restaurants and liquor outlets around the country.

Silver Creek Craft Distillery founder and chief distiller Mark Taverner knows how to have a good time. Much of his working life has been dedicated to hospitality and it was on this journey that he fell in love with American iconography. During a Harley-Davidson motorcycle tour to the USA in 2014 he noted the rise of craft distilleries and the legal production of moonshine. After two and a half years of study and research – including a stint at Moonshine University in Louisville, Kentucky – Taverner decided to set up his own craft distillery in Gauteng. And so Silver Creek, its Southern Moonshine and Prohibition Gins were born.

The meaty side of Retail

The meaty side of Retail

South Africa’s top butcheries: Cleaver Award winners announced

The best butcheries both nationally and regionally were recently announced by senior members of the meat production and retail industry. This is the thirteenth year that the Cleaver Awards, which are proudly supported by Freddy Hirsch, have taken place.  

Launched in 2005 to meet the needs of the consumer by raising standards amongst butcheries, these Awards have time and time again proven to do just that, with feedback from consumers showing that the majority perceive the Cleaver Awards to be a seal of approval, most importantly because a butchery cannot enter themselves, they have to be nominated by their customers.

Kings Meat Deli

 

Nominations were open between October and December last year for consumers around the country to vote and nominate their best butchery. Over 30 000 public nominations were received via SMS or online. Of these, 105  finalists were individually and anonymously assessed against a 212 point checklist, with some of the National Winners scoring up to 99,8 %. 

One of the guest speakers at the Awards ceremony was Rudi van der Westhuizen, Executive Director at The South African Meat Industry Company (SAMIC), a quality assurance company which was created by the Red Meat Industry of South Africa to ensure the quality and safety of meat. SAMIC is responsible for conducting all the provincial audits on the top nominated butcheries. 

Van der Westhuizen reflected on the history of the Cleaver Awards. One of the reasons for starting these Awards in 2005 was the industry’s concern over legislation and quality of meat products once they reached the consumer. 

Legislation, including hygiene matters, were in place in the abattoirs and de-boning plants with really high measurable standards, but once the carcasses or meat cuts left the abattoir premises, they were no longer under the jurisdiction of the Meat Safety Act. The Cleaver Awards were launched to improve the quality of the end product, especially with regards to hygiene, consumer quality assurance, service and value for money. 

Butchery owners and retailers have been instrumental in taking up the challenge to guarantee their customers a better product measured against the 212 point check list used to assess nominated butcheries. 

A trend which seems to be happening more and more each year is that franchise butcheries are winning multiple awards, another way these Cleaver Award winners are showing their commitment to service excellence for their customers. 

Kings Meat Deli Castle Walk, Erasmuskloof won a National Gold Award and its Lynnwoodbridge branch won a provincial Gold for Gauteng. Similarly, Boma Vleismark Olympus from Faerie Glen, Pretoria won a National Gold Award with Boma Vleismark from Moreleta Park taking home a Platinum Provincial Award in Gauteng.

Vleislapa Marshal street and Vleislapa Grobler street, both from Polokwane in Limpopo, once again walked away with a Platinum and Gold Provincial Award respectively. A similar situation has taken place in Mpumalanga with Frank’s Meat Supply Retail City taking a Platinum Award and Frank’s Meat, Panorama Centre taking a Gold.

 In Durban, Bluff Meat Supply from the Bluff as once again awarded Platinum with its Pinetown store awarded Gold.

 Spar Meat Markets continue to perform remarkably year on year, with 2017 being no exception. 

An initiative of the South African Red Meat Industry Forum, these Awards acknowledge butcheries which meet consumer expectations on in-store hygiene, the supply of quality assured roller marked South African Beef, their level of competency in offering the best advice on meal preparations and perceived value for money. 

Butchers were judged according to three categories namely;

  1. Butcheries with four or more till points,

  2. Butcheries with three or fewer till points and,

  3. Food market / Supermarket butcheries

Scooping the national accolades in the three categories of the competition (butcheries with four or more till points, butcheries with up to three till points and food market/supermarket butcheries) were Impala Vleis, Brits (Platinum), Kings Meat Deli, Castle Walk, Erasmuskloof (Gold), West End Vleismark, Kimberley (Platinum), Boma Vleismark, Faerie Glen (Gold), The Grove SuperSpar, Nelspruit (Platinum) and Karaglen SuperSpar, Edenvale (Gold) respectively. Pictured here with the awards for these top butcheries are, in the front, Marius Jordaan (Karaglen SuperSpar), Rudi Oosthüyse (The Grove SuperSpar) and Walter Rossouw (Impala Vleis). At the back, Eloff du Toit (Kings Deli) José de Klerk (West End Vleismark) and Bertus Steenkamp (Boma Vleismark). (Photograph by Yolanda van der Stoep). Image supplied.

NATIONAL WINNERS

Four and more tills

Impala Vleis, Brits

Platinum

Kings Meat Deli, Castle Walk, Erasmuskloof

Gold

Up to three tills

West End Vleismark, Kimberley

Platinum

Boma Vleismark, Olympus, Faerie Glen

Gold

Meat markets

The Grove SuperSpar Riverside, Nelspruit

Platinum

Karaglen SuperSpar, Edenglen

Gold

GAUTENG

Four and more tills

Boma Vleismark, Moreleta Park

Platinum

Kings Meat Deli, Lynnwoodbridge

Gold

Up to three tills

Country Meats, Fourways, Jhb

Platinum

Forsmay Butchery, Fordsburg

Gold

Meat market

Uitkyk Vleismark, Silverton

Platinum

Tony’s Meat Market, Randfontein

Gold

LIMPOPO

Four and more tills

Vleislapa, Marshal street, Polokwane

Platinum

Vleislapa, Grobler street, Polokwane

Gold

NORTH WEST

Four and more tills

Goudkopslaghuis, Klerksdorp

Platinum


Up to three tills

Uitkyk Vleismark, Lichtenburg

Platinum

MPUMALANGA

Up to three tills

Frank’s Meat Supply Retail City, Middelburg

Platinum

Frank’s Meat, Panorama Centre, Middelburg

Gold

Meat market

Crossing SuperSpar, Nelspruit

Platinum

Saveway SuperSpar, Witbank

Gold

FREE STATE

Four and more tills

Fredilia Meat, Welkom

Platinum

Power Meat Centre, Welkom

Gold

Up to three tills

Country Meat, Kroonstad

Platinum

Meat market

Checkers Hyper, Fleurdal, Bloemfontein

Platinum

NORTHERN CAPE

Four tills and more

Angus Butchery, Kuruman

Platinum

Up to three tills

Koki’s Meat Market, Kimberley

Platinum

EASTERN CAPE

Four and more tills

Cuyler Butchery, Uitenhage

Platinum

Up to three tills

Continental Butchery, Newton Park, PE

Platinum

Marinda Butchery, Westering, PE

Gold

Meat market

Sunridge SuperSpar, Sunridge Park, PE

Platinum

Our SuperSpar, Walmer, PE

Gold

Newtonpark Spar, Newtonpark, PE

Gold

WESTERN CAPE

Four and more tills

Excellent Meat Market, Elsiesriver

Platinum

Fairfield Meat Centre, Parow

Gold

Up to three tills

Tollies Slaghuis, Hartenbos

Platinum

Hartman & Son Butchery, George

Gold

Meat market

Malmesbury SuperSpar, Malmesbury

Platinum

Plattekloof SuperSpar, Plattekloof

Gold

KWAZULU-NATAL

Four and more tills

Bluff Meat Supply, Bluff, Durban

Platinum

Bluff Meat Supply, Pinetown, Durban

Gold

Up to three tills

Dirks Meat Market, Durban North

Platinum

Michael Freys Fresh Meat, Shelly Beach

Gold

Meat market

Pick n Pay, Kingsburgh, Durban

Platinum

Food Lovers Market, Westwood Mall, Westville

Gold

The winners in each category received Platinum Awards and the runners-up Gold Awards. First prize winners in each national category received a R20 000 cash prize and a Platinum Trophy Award. The runners-up received a R10 000 cash prize as well as a Gold Cleaver Award Trophy. All of the provincial winners received either a Platinum or Gold Cleaver Award Trophy in their category.

For the first time since the inception of the Awards, there were six consumer prizes awarded to consumers who each nominated one of the six national winners. Each of these winners received a Weber braai as their prize.

Nestle to pay Starbucks $7.15bn in global coffee alliance

Nestle to pay Starbucks $7.15bn in global coffee alliance

Reuters reports that the Nestle/Starbucks deal for a business with $2 billion in sales reinforces Nestle’s position as the world’s biggest coffee company as it tries to fortify its place atop a fast-changing market:

Swiss-based food giant Nestle will pay Starbucks $7.15 billion in cash for the rights to sell the US coffee chain’s products around the world, tying a premium brand to Nestle’s global distribution muscle.

The deal for a business with $2 billion in sales reinforces Nestle’s position as the world’s biggest coffee company tries to fortify its place atop a fast-changing market.

Nestle Chief Executive Officer Mark Schneider (Photo RICHARD JUILLIART/AFP/Getty Images)

It is a bold stroke by Nestle Chief Executive Mark Schneider, who has made coffee a strategic priority as he tries to convince uneasy shareholders, including activist Third Point, that he can boost the sprawling group’s performance.

Bernstein analyst Andrew Wood said that Nestle’s third-biggest acquisition would allow the Swiss company to expand the brand through its global distribution network.

Nestle shares rose 1.4% by mid-session, having fallen by more than 8% so far this year. Starbucks stock was indicated 2.8% higher.

Seattle-based Starbucks, the world’s biggest coffee chain, said it will use proceeds to speed share buybacks and the deal would add to earnings per share (EPS) by 2021 at the latest.

Nestle said it expects the deal to sell Starbucks bagged coffee and drinks adding to earnings by 2019. It will not involve any of Starbucks’ cafes or ready-to-drink products.

But it does let Nestle sell Starbucks coffee in individual pods – as it does now with Nespresso and Nescafe – and expand sales of Starbucks soluble coffee, a key market in Asia. Starbucks now sells single-serve coffee in Kuerig K-cup pods.

The Nestle name will not appear on Starbucks products. “We do not want the consumer to perceive that Starbucks is now part of a bigger family,” a Nestle source said.

Starbucks, strong mostly in the United States, will have the final say on expanding its product range.

This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle,” said Starbucks Chief Executive Kevin Johnson.

Nestle and Starbucks are joining forces in a highly fragmented consumer drinks category that has seen a string of deals lately.

JAB Holdings, the private investment firm of Europe’s billionaire Reimann family, has fuelled the consolidation wave with a series of deals including Douwe Egberts, Peet’s Coffee & Tea and Keurig Green Mountain, narrowing the gap with Nestle.

Richer brew

Coffee is popular with younger customers who have grown up with Starbucks. A willingness to pay up for exotic beans and speciality drinks means companies can brew up richer profit margins than in mainstream packaged food.

Starbucks said it now expects to return approximately $20 billion in cash to shareholders in share buybacks and dividends through fiscal year 2020.

It said the transaction was expected to add to earnings per share by the end of fiscal year 2021 or sooner, with no change to the company’s currently stated long-term financial targets.

Nestle said it expected the business to contribute positively to earnings per share and organic growth targets from 2019.

The company source said it would also pay market-linked royalties to Starbucks. It will not buy any industrial assets as part of the deal, but could step in to produce in markets where Starbucks is not present.

Nestle, which will take on about 500 Starbucks employees, said its ongoing share buyback program remained unchanged.

The agreement will strengthen Nestle’s position in the United States, where it is the No. 5 player with less than 5% of the market. Market leader Starbucks has a 14% share, according to Euromonitor International.

In the US, Nescafe is seen as a downscale brand for older people, and the Nespresso system as a niche product. Starbucks is the quality, mass-market leader,” said Erik Gordon at the University of Michigan’s Ross School of Business.

Nestle is far and away the largest hot drinks company globally, with more in sales than the next five largest hot drinks companies combined,” Matthew Barry, an analyst at Euromonitor, said when the tie-up was first mooted on Friday.

However, Nestle’s leadership position is less secure than it once was.”

Coffee in focus

Other big players are growing as well, including Italy’s Lavazza, which is now the world’s No 3.

Nestle CEO Schneider last year identified coffee as an area of investment.

It bought Texas-based Chameleon Cold-Brew in November and took a majority stake in Blue Bottle Coffee, a small up-scale café chain, in September 2017.

Starbucks, which in April reported a global drop in quarterly traffic to its established cafes, has been revamping its business amid competition in its key home market. It sold its Tazo tea brand to Unilever for $384 million and closed under-performing Teavana retail stores.

Starbucks is rapidly expanding in China, which it expects to one day be its largest market. It also plans to open 1,000 up-scale Starbucks Reserve stores and a handful of Roastery coffee emporiums to take on high-end coffee rivals such as Intelligentsia Coffee & Tea and Blue Bottle

Starbucks has long farmed out the retail distribution of its packaged products to a company more specialised in that process, but the partnerships have not always been smooth.

Nestle, the world’s largest packaged food company, is also not shy when it comes to partnering with rivals through licensing deals or joint ventures, having reached arrangements with General Mills’ and Hershey, among others.

Source: EWN

Seal it right first time – and seal it Green

Den Braven sealants are well proven as ideal for application in the shopfitting industry, shopping centres and retail environments

Seal it right first time – and seal it Green

For decades now in Southern Africa DIY home enthusiasts, professional contractors and architects alike have been dedicated to using and specifying the reliable and effective Den Braven range of quality sealants – designed for applications to suit every renovation and construction purpose.

Den Braven is well-known globally throughout the construction and building-retail sectors as the one-stop-shop for all sealing requirements – for wet or dry environments, harsh external weatherproofing applications – as well as for effective fire-retardant application in commercial and home environments,” says Michael Berg, Den Braven SA National Sales and Marketing Manager.

Michael Berg, Den Braven SA National Sales and Marketing Manager

The company’s wide range of of over 55 specialised sealants is manufactured to stringent standards at its headquarters in The Netherlands, as well as at seven other factories across Europe, and are distributed and applied worldwide in the most iconic buildings and the simplest of homes.

 

Den Braven sealants are well proven as ideal for application in the shopfitting industry, shopping centres and retail environments”

All the mirrors work in the casino, hotel and Presidential suite of the Menlyn Maine precinct in Pretoria were installed by Whipco using Den Braven products

Den Braven is not only a “one-stop-shop” though,” continues Berg, “The company also offers the full scope of comprehensive technical advice and assistance for its quality high performing products. For example, the right choice of sealant is essential in a bathroom environment, and of course in the shop-fitting trade and commercial and industrial areas where fire-retardant is a priority.”

Berg emphases the importance of “Doing it right first time” – which is enabled by Den Braven sealants. “Although there may be many sealants on the market very few match the quality and performance of Den Braven.”

Den Braven sealants have been specified and selected by professional contractors and architects as the preferred product range for iconic buildings such as Knightsbridge on Sloane Street, the Kusile and Medupi Power Stations; Standard Chartered bank in Ghana; Christiaan Barnard Memorial Hospital in Cape Town; the Hilton Hotel Durban; Menlyn Main Precinct in Pretoria; Learning Hub and Polofields Residential Estate – to name but a few.

On fire-protection, Den Braven, has developed a special range of sealants designed to retard fire for up to four hours, allowing more time for safe passage in case of fire.

Known as FireProtect®, this patented range of products, available in silicone, acrylic, hybrid and PU foam is applied to expansion and connection joints such as window frames, doors and cornices during their installation in the finishing stages of construction.

It is a complete, fully-certified and approved range of passive fire protection products used in expansion and connection joints, openings and penetrations between fire compartments,” said Berg. “And we encourage contractors, architects and developers to play an active role in staying a step ahead of potential fire.”

FireProtect products for passive fire protection which are included in the construction of a building are integral to the structure and have a primary function to reduce the spread of flames, heat and smoke.

Den Braven passive fire protection can contribute to saving lives; reduces material damage; minimises personal and business loss; and protects the building structure.

The Den Braven Centre of Excellence in The Netherlands

Sustainability and Green buildings

In South Africa, Den Braven is an active member of the Green Building Council of South Africa (GBCSA) with its products contributing to Green Star building ratings across the country. Contractors in the building and construction industry as well as individuals in the DIY sector work with these products on a constant daily basis, in the knowledge that their health and safety is secure.

Doing business with Den Braven means being compliant with current and future legislation, environmental, social, health and safety governance. The company’s R&D teams are continuously tracking regulatory changes and trends, keeping its portfolio of standards in shape for the future. Den Braven has regular audits to verify its performance on ambitious environmental and social governance agendas and the company has also achieved and operates to ISO certifications 9001 and 14001.

Just some of the Den Braven professional sealant range of over 55 sealants is listed below:

  • Acryl Wet On Wet – Instantly paintable acrylic sealant
  • Aqua-Silicone – Silicone for fresh and salt water aquaria
  • Gasket-Sealant Red – Acetoxy silicone sealant with high temperature resistance
  • Silicone-Colours – Neutral silicone sealant available in a wide range of colours
  • Allround Sealant – A versatile non filled sealant
  • Fix-O-Chem (STYRENE Free) – 2-component tension free chemical anchoring (styrene free)
  • FP Acrylic Sealant – Fire resistant acrylic sealant
  • FP Hybrid Sealant – Fire resistant sealant
  • FP Intumescent Acrylic – Strongly intumescent fire resistant sealant
  • FP Pu Gun Foam – Fire retardant polyurethane foam certified according to EN 1366-4
  • FP Silicone Sealant – Fire retardant silicone sealant
  • Fire cement + 1200°C – Fire Sealant 1200°C

Den Braven is a dynamic and entrepreneurial multinational company with about 1 200 enthusiastic employees. The company dispatches many millions of canisters and cartridges of sealants, foams, aerosols and other adhesives to construction enthusiasts all around the world. Den Braven has eight production facilities and 25 sales and distribution offices and reaches near global coverage via a worldwide network of distribution points.

For product information and technical advice contact Den Braven South Africa at:

Phone: (+27) 11 792 3830

Email: mberg@denbraven.co.za

Address: High View Business Park, Ferndale, Highview Blvd, Ferndale, Randburg Johannesburg.

Or visit the informative and interactive Den Braven website: http://www.denbraven.co.za