Lonrho's seafood division Oceanfresh is to supply hake fillets to Walmart stores in the US

Walmart to sell SA hake

FMCG SUPPLIER NEWS

Business Day - Jul 26th 2011, 10:31

Johannesburg - Lonrho's seafood division Oceanfresh is to supply hake fillets to Walmart stores in the US from October, it said on Monday. 

"Oceanfresh is among the first South African companies to supply seafood to Walmart's US operations," Lonrho said.

"As a result of this new partnership with Walmart, Oceanfresh has expanded its production capabilities in South Africa and this contract will stimulate over 100 new direct jobs and hundreds of new indirect jobs to meet the new Walmart orders."

The hake - which is a new line for Walmart - is caught wild and sustainably sourced, Lonrho said.

"Lonrho's Oceanfresh division has been diligent in working with the World Wildlife Fund's sustainable sourcing programme to ensure that fish stocks are properly managed and that catch quotas are within sustainable levels to maintain wild fish stocks for future generations," said David Lenigas, Lonrho's executive chairperson.

Walmart has come under the spotlight in South Africa after it bought a 51% stake in local retailer Massmart.

The merger was approved by the Competition Tribunal subject to certain conditions, but the government has since applied to the Competition Appeal Court for a review of the decision.

Government argued there was "substantial public interest concern" in the merger, among these that it might lead to job losses.

Business Day reported on Monday that government wanted the deal to be subject to suspensive conditions.

The report quoted the department of trade and industry director general Lionel October as saying the conditions would be triggered only by a specific outcome, and would put the onus on the companies to limit imports and prevent damage to local industry.