Gauteng Business 2017-18 edition

Food and beverages
Gauteng’s big market is attractive to producers.
OVERVIEW
More than half of the companies operating in the food and
beverage sector in South Africa are located in Gauteng,
including Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI
and Astral. There are approximately 4 000 food-processing
companies in the province, employing more than 100 000 people. The
food and beverage sector experienced 18% growth from 1996 to 2013.
Nestlé operates four manufacturing plants in the province and
has invested heavily in increasing production volumes over the last
three years. Tiger Brands runs six plants in Germiston that produce a
range of meat products, and the establishment of a new tomato sauce
plant and pasta plant rank among the company’s recent investments
in the province. McCain Foods, located in Springs, produces frozen
vegetables for the Gauteng market.
Although the South African poultry business as a whole has taken
a knock because of the relaxation of import duties, the South African
consumer still eats a lot of chicken. Earlybird Farm, one of Astral’s operations,
processes 800 tons of chicken per day at its two factories in
Olifantsfontein. RCL operates 18 farms and two feed mills in Gauteng
alone. Daybreak Farms, an AFGRI operation, is located in Springs and
produces about 650 000 broilers every week.
Several beverages in AVI’s portfolio (including Ciro) are produced
at the group’s Kempton Park facilities.
The South African beer market is growing by 1.5% per year.
Three of the seven breweries operated by SAB in South Africa are
in Gauteng. AB Inbev, SAB’s new owner, will spend R2.8-billion
on new facilities in South Africa and recycling plants in Gauteng.
Amalgamated Beverage Industries, a subsidiary of SAB, has plants
in Midrand, Devland and Pretoria.
CONTACT INFO
Food Advisory Consumer Services: www.foodfacts.org.za
National Agricultural Marketing Council: www.namc.co.za
FoodBev SETA: www.foodbev.co.za
South African Association for Food Science and Technology:
www.saafost.org.za
SECTOR INSIGHT
Heineken is expanding its
brewery.
Heineken’s fairly new brewery
at Sedibeng is already undergoing
expansion, with cider production
set to increase.
Key players in the industry
in South Africa include South
Africa Breweries (SAB) (malt
beer), United National Breweries
(sorghum beer), Distell (spirits and
flavoured alcoholic beverages, or
FABs) and Brandhouse (malt beer,
spirits and FABs).
Investment opportunities in
this sector include: production of
ground-nuts, sunflowers, cotton
and sorghum; soya beans, rooibos,
beverages, fruit and vegetables;
essential oil extraction from
herbs and indigenous plants; expanding
the “exotic” meat (kudu,
ostrich and springbok) market,
locally and globally; packaging of
agri-processed goods; the Green
Hub in the West Rand District
Municipality will promote the
growth of sustainable, green industries;
research and development
of organic food production,
health foods and natural remedies;
and small business opportunities
within the brewing industry.
51 GAUTENG BUSINESS 2017/18