Bowcalf adds fizz to SoftBev decision
By Marc Hasenfuss - Nov 9th, 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
Evian aims to deflect water criticism by going carbon neutral
12/09/2017 - 15:17
Evian aims to become the first major spring water brand to go carbon neutral amid criticism that packaging water from the French Alps and transporting it around the world in plastic bottles causes unnecessary environmental damage.
Sappi shares wobble after quarterly earnings report
03/08/2017 - 13:45
Sappi shares wobbled in early trade on the JSE, losing 2%, after the paper and pulp producer forecast lower operating performance in its fourth quarter. It cited higher prices for raw materials and a stronger rand.
Marks & Spencer reduces snack food packaging
19/07/2017 - 10:59
UK retailer Marks & Spencer is cutting the amount of packaging used for its snack products such as crisps and popcorn by reducing the pocket of air at the top of the bag.
Mondi introduces packaging solution for watermelons
17/07/2017 - 15:14
Packaging and paper group Mondi has launched a new packaging solution for watermelon transportation and storage, which will enhance product appearance at the point of sale.
What is the investment case for Mondi and the resurgent Sappi?
26/05/2017 - 12:05
Mondi's market cap has grown fourfold since 2007, largely as a result of its focus on packaging, while Sappi's stock is at a record high.