Boston, MA -- (SBWire) -- 06/12/2013 --Our outlook on South Africa's consumer sector remains optimistic, despite serious headwinds from the global economy that will inevitably take their toll on growth. We maintain our core view that economic growth in South Africa will be driven by the demand side (ie, wholesale and retail trade, and financial and personal services) while the supply side (primarily mining and manufacturing) continues to remain weak. In our view, several factors bode well for consumer spending, namely relatively contained inflation, high nominal wage growth and the low interest rate environment, which is likely to keep a lid on debt servicing costs.
View Full Report Details and Table of Contents
Headline Industry Data (local currency)
- 2013 per capita food consumption = +8.5%; forecast compound annual growth (CAGR) to 2017 = +8.8%.
- 2013 soft drinks volume sales = +5.4%; forecast compound annual growth to 2017 = +7.5%.
- 2013 mass grocery retail sales = +9.5%; forecast compound annual growth to 2017 = +9.8%.
Key Company Developments Pick n Pay Reports Mixed Results: In October 2012, Pick n Pay, the country's second biggest food retailer, reported encouraging first-half results to August with like-for-like sales increasing by 3.2%. Pick n Pay is working towards making itself more efficient, as its operating margins have been lower than Shoprite's for the past few years. However, the company's profits suffered, recording a 6.3% year-on-year (y-o-y) decline in H112 to ZAR182mn (US$21mn). The company recorded overall revenue of ZAR28.3bn (US$3.25mn) in the first half, which represented a 5.9% increase from the same period the previous year.
Diageo Invests In UB Group SA's Sorghum Unit: In November 2012, UK drinks major Diageo and India's UB Group entered into a memorandum of understanding under which the UB Group's sorghum beer business in South Africa will become a 50:50 joint venture. This followed a spirits deal between the two firms. Diageo will spend US$36mn for its 50%, with the other half held by UB Group's chief, Vijay Mallya.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Food research reports at Fast Market Research
You may also be interested in these related reports:
- South Africa Agribusiness Report Q3 2013
- Kuwait Food & Drink Report Q3 2013
- United Arab Emirates Food & Drink Report Q3 2013
- The Future of South Africa Food Packaging to 2017
- South Korea Food & Drink Report Q2 2013
- Nigeria Food & Drink Report Q2 2013
- China Food & Drink Report Q3 2013
- Croatia Food & Drink Report Q3 2013
- Indonesia Food & Drink Report Q2 2013
- Greece Food & Drink Report Q3 2013
New Report Available: South Africa Food & Drink Report Q2 2013
Fast Market Research recommends "South Africa Food & Drink Report Q2 2013" from Business Monitor International, now available