Food & Beverage Reporter August 2018
South Africa's leading B2B magazine for the food & beverage sector and its allied industries in processing/packaging etc
South Africa's leading B2B magazine for the food & beverage sector and its allied industries in processing/packaging etc
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DISRUPTORS<br />
You seem to have incubated the<br />
business for some years, slowly<br />
building momentum with direct-tohome<br />
deliveries. Then, suddenly, you<br />
make a big bang with an extensive,<br />
boldly-packaged range in Dis-Chem,<br />
your own store, in Sasol stations and a<br />
big billboard in Sandton! How did this<br />
jump occur? Did you take on investors?<br />
We’ve built FitChef without investors<br />
so far. I think it’s better to go without<br />
investors sometimes as often money<br />
doesn’t solve the problems. The Silicon<br />
Valley-investment style of throwing<br />
money at everything is a flawed model, in<br />
most cases, and it’s a crumbling model.<br />
Business owners need to be extremely<br />
resourceful and there is a LOT of pain,<br />
sleepless nights and soul searching<br />
involved in that process.<br />
However, a business does reach<br />
a point where lack of funds does hold<br />
you back because competitors often<br />
have deeper pockets, access to bulk<br />
purchasing buying power, expensive<br />
automation or can afford to run at a loss<br />
while building market share. We<br />
are hoping to announce an investor deal<br />
very soon.<br />
As a side note,<br />
I think that South<br />
African investors<br />
need to loosen up<br />
a bit though – or<br />
maybe it’s time the<br />
government actually<br />
gives back too. There<br />
is a general lack of<br />
respect and under-standing towards<br />
entrepreneurs and how much effort<br />
goes into building a brand, setting up the<br />
company systems and working your way<br />
through the J-Curve. Local investors often<br />
can’t see that investment should be a winwin<br />
partnership.<br />
We worked extremely hard to build<br />
a brand, working seven days a week and<br />
burning the candle at both ends. So,<br />
luckily, retailers have been approaching<br />
us and we couldn't miss the opportunity.<br />
We have a very large retail roll out<br />
planned. We are grateful for the support.<br />
And your main focus going forward?<br />
Online sales was always going to be our<br />
main focus, followed by retail, but it looks<br />
like retail will overtake our online sales.<br />
South Africa is light years behind the<br />
international online sales and deliveries<br />
trend. We still like malls, like to pay cash<br />
and many are scared of using credit<br />
cards online despite the fact that there<br />
is no risk to the consumer. The bank just<br />
reverses fraudulent transactions and the<br />
seller is the one who loses out.<br />
Taking on the frozen food giants at<br />
their own game is no easy challenge.<br />
How are you positioning yourself in<br />
the market to ensure they don’t<br />
stomp on you going forward?<br />
We are being watched by the giants.<br />
Some of them have approached us.<br />
I believe we are in a unique position in the<br />
market because of our EatClean ethos.<br />
We are obsessed with wholefood<br />
ingredients. We are committed to having<br />
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