Advertise with fastmoving.co.za
 
 

Bowcalf CEO Friedel Sass.
Bowcalf CEO Friedel Sass.

Bowcalf adds fizz to SoftBev decision

FMCG SUPPLIER NEWS

By Marc Hasenfuss - Nov 9th 2017, 13:56

Plastics packaging specialist Bowler Metcalf (Bowcalf) served up a dose of good news to shareholders on its investment in struggling soft-drink bottler SoftBev at its annual general meeting on Wednesday. 

Bowcalf CEO Friedel Sass said SoftBev, which bottles brands such as Jive, Pepsi and energy drink Reboost, traded ahead of budget in the first four months of the new financial year. He said that not only was the aggressive budget exceeded at turnover level, but SoftBev also broke even in October.

"These are the first signs that we have turned the corner."

There has been talk of Bowcalf wanting to sell its stake in SoftBev so that management can focus on guiding the perennially profitable plastics packaging operations through a highly competitive trading environment.

It seems, though, that Bowcalf wants to restore profitability at SoftBev before any decisions are taken on potential offers.

Sass confirmed that Bowcalf had been inundated with offers to buy SoftBev. "But we need to return value to shareholders, and have subsequently taken a view that we would not entertain further offers for SoftBev until the end of January or February next year."

Bowcalf nonexecutive director Michael Brain said Reboost, which enjoyed good margins, was proving a strong performer for SoftBev. "I’d be very happy if we can push sales to 5-million cases a year."

Brain said that in time, Reboost could account for up to 20% of SoftBev’s turnover and operating profit.

Of the effect of the water shortage in the Western Cape on Bowcalf’s operations, Sass said that alternative water sources were being secured, including boreholes and reverse-osmosis systems. Brain said that these initiatives would have a two-year payback.
© BusinessLIVE MMXVII 

Read more about: softbev | sass | packaging | bowcalf

Related News

Beware the greenwashers - 5 Tips to help the conscious consumer make better choices
20/09/2018 - 10:03
Consumers are often misled to believe they are helping the environment when buying products that are supposedly green. However, on closer inspection, not all green products are created equal. Enters greenwashing.

Carlsberg to scrap plastic rings on cans in favour of glue
10/09/2018 - 14:23
Carlsberg will ditch plastic rings which connect multi-packs of its beer and replace them with glue, in a move which is set to “reduce plastic waste globally by more than 1,200 tonnes a year”.

Re-thinking your packaging design for the new digital consumer
21/08/2018 - 11:15
iCitizens; Millennials; digital natives; call them what you will, but if your business model is still trying to catch up with what ‘them confounded Millennials’ want in packaging, you are going to get left behind by a new “generation” of Digital Nomads. And it has less to do with age and more to do with their increased buying power, tech savviness, global connectedness, environmental concern and an insatiable craving for instant gratification and the experiential.

AB InBev launches accelerator to help fund sustainability start-ups
16/08/2018 - 09:36
AB InBev has launched a new green innovation accelerator as it aims to tackle some of the most pressing sustainability issues.

Mondi to cash in on eco-friendly alternatives
14/08/2018 - 14:08
Over the past decade, Mondi’s strategic focus has been on building capacity, driving efficiency and making well-executed acquisitions. The strategy is paying off for the €7.5bn annual revenue paper packaging group.