South African Business 2020 edition

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OVERVIEW Food and beverages Small municipalities are struggling to supply services to processors. SECTOR INSIGHT PepsiCo has bought Pioneer Foods. Two of the best-known large companies in South Africa’s food and beverages sector were purchased by international companies in 2019. The involvement of PepsiCo (which bought Pioneer Foods) and Central Bottling Co of Israel (which made on offer on Clover) confirms that the idea of South Africa being a stepping-stone to the rest of Africa is still alive. Pioneer Foods, which makes and sells a wide range of products from bread, cereal and fruit juice to spreads and pies at various locations around the country, sold for R24.4-billion. Clover is a listed dairy company which in 2017 produced 554-million litres of milk and had revenues of R10-billion. Clover’s action in 2019 in closing three small-town plants in rural areas illustrated a less positive aspect of South African manufacturing: the inability of small municipalities to adequately supply services to companies. Clover moved production to Port Elizabeth, Durban and Johannesburg. Poultry producer Astral’s appeal to national government eventually led to positive results in the Mpumalanga town of Standerton after water and electricity had become scarce commodities. Food and beverages make up 26% of the South African consumer products sector, just ahead of agri-business (25%), diversified companies (23%) and sugar producers. Between 2009 and 2016 the sector grew by 2%. Most recent capital expenditure has targeted improving ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za FoodBev SETA: www.foodbev.co.za National Agricultural Marketing Council: www.namc.co.za Perishable Products Export Control Board: www.ppecb.com efficiency rather than expansion of production. The food and beverages sector employs about 230 000 people. Beverages account for just over 4% of all manufacturing sales while food is responsible for 13.5%. Within the sector, beverages accounts for 24% of sales. One quarter of the 37% of national GDP that is generated by agri-industries derives from agri-processing. Gauteng, the Western Cape and KwaZulu-Natal are the leading provinces, with half of the companies in the sector in Gauteng. There are about 4 000 food-processing companies in Gauteng, employing more than 100 000 people. Global consumer goods company Unilever has invested nearly R4-billion in recent years. This highlights a trend across the food and beverages sector. In 2016, Nestlé South Africa invested R1.2-billion in adding instant coffee to the products it makes in South Africa. By volume and value, the Joburg Market is the biggest in Africa. There are 55 cold rooms that can accommodate 4 561 pallets of fresh produce at any one time. An average of 10 000 buyers congregate daily on the market’s 65 000m² of trading space. SOUTH AFRICAN BUSINESS 2020 82
Kemtek pursues continual growth Kemtek keeps abreast of industry developments and potential new markets while offering the best solutions to customers. CONTENTS PROFILE Targeted industry events and product demonstrations are proving highly popular with Kemtek customers and prospective customers alike. Long-established in the lithographic, flexographic, digital and large-format printing and packaging arenas, Kemtek has evolved over time into a multi-pronged organisation, entrusted with channel responsibility by many of the world’s leading brands in the barcoding and labelling sectors through widespread professional resellers, plus 3D printing, through its joint venture partner Rapid 3D. Aligning with internationally-acclaimed brands is one aspect of Kemtek's continued success, coupled with expert sales and service support, and an agile and specialised national distribution network, annually achieving some 15 000 deliveries. This fast-growing enterprise also represents specialist additive manufacturing equipment and materials providers in multiple sectors including aerospace, automotive, manufacturing, medical, dental and jewellery, with brands such as EOS, Envisiontec and Zortrax. Building on core strengths Creating value on a sustainable basis is Kemtek’s marketing approach that's based on a detailed understanding of markets and the needs of the end user. These needs are then married to the technologies provided by Kemtek's principal brands. Providing a winning edge for all Kemtek's customers means delivering the most advanced technological equipment and service, backed by a total commitment to service excellence. With digital printing firmly growing in Southern Africa, Kemtek and partner, HP Indigo, have recently expanded their labels and packaging portfolio with technology solutions to drive printing and converting toward more flexible, productive and profitable digital printing. Taking digital finishing to the next level is the ability to integrate the Indigo 6900 with an HP Indigo GEM digital embellishment unit – a one-pass label-printing and embellishment system for spot, tactile, foil, holograms, mini textures and lamination. In the packaging sector, Kemtek’s alliance with Flint Flexographic products goes from strength to strength. Flint has extended the range with nyloflex FTF-UV plates, designed for high-resistance to UVbased inks, and nyloflex FTP for paper packaging applications such as multiwall sacks and liquid dairy cartons. Another important development between Kemtek and Flint Group is a distribution agreement that allows Kemtek to supply the full range of ThermoflexX laser imaging systems in South Africa. For more information, visit www.kemtek.co.za 83 SOUTH AFRICAN BUSINESS 2020
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PROFILE 3 SOUTH AFRICAN BUSINESS 20
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MESSAGE PROFILE Beyond the business
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WHAT YOU NEED TO KNOW PROCESS FOR A
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® Build your investment while we b
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FOREWORD UNPACK YOUR POTENTIAL WITH
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STAND OUT WITH sustained savings Be
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SPECIAL FEATURE showing at micro le
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SPECIAL FEATURE Investing in South
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10 REASONS WHY YOU SHOULD INVEST IN
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SPECIAL FEATURE KwaZulu-Natal Capit
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Sectoral strengths of South African
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INTERVIEW 0 0 11 01 1 0 11 01 0 1 0
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FOCUS mangoes, 65% of its papayas,
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SPECIAL FEATURE transported around
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Page 38 and 39: INTERVIEW PROFILE Maritz Electrical
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Page 49: 28 October 2019. closer to the time
Page 52 and 53: PROFILE Bonds with China boost jobs
Page 54 and 55: FOCUS Women of PMC Experience, skil
Page 56 and 57: The Export Credit Insurance Corpora
Page 59 and 60: KEY SECTORS Overviews of the main e
Page 61 and 62: Land Bank is also looking to create
Page 63 and 64: Sharing Africa’s beauty with the
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Page 67 and 68: OVERVIEW The economic power of rene
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Page 87 and 88: OVERVIEW Long-term state support of
Page 89 and 90: OVERVIEW Several airports are possi
Page 91 and 92: Banking and financial services New
Page 93 and 94: Audit and Risk Management Solutions
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Page 97 and 98: OVERVIEW FOCUS in Gauteng, the prov
Page 99 and 100: SUPPLYING INDUSTRIAL GASES TO SOUTH
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