Bidcorp expects higher food inflation in SA
By Nick Hedley - May 23rd, 09:16
Global food-services group Bidcorp expects rising food price inflation in SA, where food producers and retailers are grappling with higher costs and low selling price increases.
Pioneer Foods’ half-year results showed that the food-producer industry is struggling to pass on higher costs to SA’s consumers, who are contending with higher fuel prices and an increase in VAT.
Pioneer said earnings fell in the six months to end-March as costs rose faster than sales partly because of low food price inflation.
But Bidcorp, which makes and distributes food products to restaurants and other clients, said its SA business “is showing improvement despite weak economic conditions”.
“The food inflation trajectory is up, which will start to assist Bidfood,” it said.
The group said its overall results in SA in April “were much improved" compared to a year before.
While China and SA remained tough markets, “monthly performance is starting to improve against last year".
Globally, trading “continues to be positive” in local-currency terms, it said. “Our large UK, European and Australasian businesses continue to perform well.”
Meanwhile, Bidcorp said acquisition opportunities were being limited by “unrealistic” valuations from sellers “at this stage of the cycle”.
This meant fewer bolt-on acquisitions had been concluded.
In the three months to March, Bidcorp’s Bidfood UK business bought Punjab Kitchen, a niche ready-meals business, for R291m.
Bidcorp said it was in “advanced negotiations” to sell its Bestfood Logistics unit in the UK to a “reputable international buyer”.
The deal would probably be closed in the first quarter of the 2020 financial year.Business Live
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.