Which way will food prices go in 2012?**
Food price inflation is a fickle and difficult to track; it’s influenced by a complex web of interdependent factors that are subject to varying degrees of volatility, which rarely benefits consumers.
At best, prices remain constant for a while before a spark of activity causes a malicious alignment that conspires to drive prices upward, with aggression. This sums up the irregular pattern of food prices – they’re very quick to rise but, slow to retreat.
While most consumers believe that food prices keep escalating by about 35%, we know that’s not true.
South Africa’s two biggest FMCG retailers reported food price inflation of between 0% and 1.3% in their 2011 annual reports. Pick n Pay, for the six months to August believe that figure to be close to 3%. Low food price inflation is a major contributor toward keeping the overall CPI rate lower than anticipated, and may well help to stimulate an interest rate cut.
Retailers like inflation to be mild and consistent, the moment prices start bouncing around or shooting for the sky, consumers react and trading becomes difficult. Shoprite has proven that keeping prices down quickly attracts new customers. When there is price deflation, trading becomes even more difficult and a lean supply chain becomes critical.
What we do know is that consumers are strained at the moment and any sharp upward movement of prices will have them reacting quite aggressively.
For various reasons 2012 will be a tough year for most South African retailers. One can only hope that they will be aided by a moderate and stable inflation of food prices.
Craig Ballantyne
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New Products
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A new addition to Aquartz flavoured water range
Aquartz is also introducing a sparkling new addition to its flavoured water range. This new mango variant compliments the existing Aquartz flavoured water range and is available in a 500 ml bottle
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Nestle’s new easy-peel ice-cream is a first in South Africa
Nestlé is excited to introduce the Krazy Monkey as the first ice-cream that can be peeled in South Africa. This banana-shaped treat, which is the newest addition to the Nestlé Impulse range, is covered in an edible grape-flavoured jelly, which consumers can peel away to enjoy the soft vanilla ice-cream filling inside.
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Living made easy with Pasta Grande
Building on the success of our Pasta Grande range of pastas, we continue to expand the range with the introduction of 4 more bulk variants and 3 new exciting 500g shapes. These new additions to the range will stimulate interest and further growth in the pasta market.
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Hygiene Toothbrushes
A.J. North, the only toothbrush manufacturer in South Africa has launched a completely new range of Oral Hygiene toothbrushes - 100% designed and proudly made in South Africa - right down to the last bristle!
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Big news from Aquartz
Aquartz is going big on flavuor and refreshment. Three of Aquartz delicious variants are now available in 1.5-litre bottles. The variants available in 1.5-litre bottles are Cranberry Rasberry, Lemon Lime and Peach Passion and compliment the pure still and sparkling waters already available in 1.5-litre packs.
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Ceres’ new mystical flavour bursts with goodness
Ceres fruit juice brings you a new, rich flavour, Full Moon Harvest, part of the 100% juice range. Full Moon Harvest - the classic superior quality of Ceres and the mystical flavour of the valley from which it springs.
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I&J Beefers in 2 New Variants - Sweet Chilli and Mild Curry
I&J Beefers are now available in two new variants, Sweet Chilli and Mild Curry. Available in the frozen food aisle of your favourite retail outlet, in 800g packs.
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Blink Mints
Blink Mints, delivering a high quality mint product, sugar free, low in calories, healthy and superbly flavoured.
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Brand Activity
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Clorets breathes fresh breath through Billads
Clorets’ new Cherry Menthol chewing gum achieved a 73% brand recall rate during its consumer engaging Billads sampling campaign, which was organised in restaurants and bistros by Nine Mile Media targeting a potential 1 450 000 consumers over a two month period.
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South Africa’s positioning in the world olive oil market (Vezuvio)
The South African olive industry is mainly concentrated in the Western Cape. South Africa's consumption of olive oil per capita is approximately 80ml per annum whereas major olive oil countries (Greece, Spain, and Italy) range between 12-24L per individual. So why is it that South Africans are so far behind some of the global trends when the country is producing some of the best Olive oil in the World?
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Featured Brands
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Westfalia Avocado Oils
Westfalia Avocado Oil is made only from choice quality, locally grown Hass avocados. Westfalia’s range of Plain (both regular and organic), avocado oil, as well as natural Garlic, Lemon, Chilli, Basil and Mediterranean (herbs) infused avocado oils, offers a healthy and delicious option for everyday food preparation.
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Willow Creek
Here at Willow Creek Olive Estate we celebrate all that is ‘olive’, reveling in our quest to produce world class delicacies from this multi-faceted fruit.
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Featured Retail Services
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Accsys
Accsys is an award winning South African software company specialising in people management solutions and offers a 100% integrated people management system comprising payroll, human resources, time and attendance, access control, employee self service and state of the art biometric devices.
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Digipos store solutions
DigiPoS Store Solutions is the first choice for many retailers across the globe. Operating across 16 divisions, DigiPoS delivers innovative technology to retailers and point of service businesses. We develop award winning hardware, software and professional services
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Retail Services News
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Thirsty Thoughts: Buttermilk and Maas
Buttermilk and maas are quantified collectively as part of BMI’s annual research into the dairy industry. BMI Research has detailed volume, value and trend information on the category after more than a decade’s worth of analysis of the industry.
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First South African Fairtrade week encourages consumers to taste the change - On 14 - 20 November 2011
In just a few short weeks Fairtrade Label South Africa (FLSA) will be celebrating our very first Fairtrade Week in South Africa, a campaign aimed at raising awareness about Fairtrade among the local public. Fairtrade Weeks slogan, ‘Taste the Change’
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Whose Responsibility is it?*
FMCG companies spend vast amounts of money publishing and promoting their customer care toll free numbers. Furthermore consumers become disillusioned when they call certain call centres and are shunted from one agent to another, when agents cannot assist the client with their product queries. Consumers often get frustrated with brands try and do ‘cool things’, but can't handle a basic enquiry.
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FMCG Jobs
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Responsible Pharmacists (Needed for Kwazulu Natal, Port Elizabeth and Cape Town)
This role requires a qualified pharmacist who has an understanding of the MCC requirements for scheduled medicines (schedule 1,2 and 3). this position would possibly suit a junior pharmacist with some retail experience alternatively possibly a retired person who still wants to make a contribution
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Costing Manager (Senior Level) Gauteng
A leading international company, is offering an opportunity to join a highly successful team tasked with the strategic and operational management of 14 countries within the African continent. We are looking to appoint a seasoned Costing Manager who will be called a Pricing and Business Intelligence Manager. To be considered for this role you must have experience in a service related field such as logistics, courier, car rental etc and be a commercially astute costing expert.
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Operations Director : FMCG Distribution
A large FMCG multinational, expanding at a rapid rate and servicing the West African emerging commodity market, is looking for an experienced Operations Director. This is a newly created position. The incumbent will be responsible for the strategic distribution strategy across 3 business units.
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Events
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SOCAP SA 2011 Conference
When: 3 Nov 2011 – 4 Nov 2011
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New dairy experience come to the Cape
When: 4 Nov 2011 – 5 Nov 2011
Venue: Sandringham (next to the N1 between Cape Town and Paarl)
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Food Safety Conference
When: 21 Nov 2011– 24 Nov 2011
Venue: The Crowne Plaza, Johannesburg
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Global Sources: China Sourcing Fairs
When: 30 Nov 2011 – 2 Dec 2011
Venue: Gallagher Convention Centre, Midrand, Johannesburg
· Global Sources, Baby & Children's Products China Sourcing Fair
· Global Sources, Hardware & Building Materials China Sourcing Fair
· Global Sources, Garments and Textiles China Sourcing Fair
· Global Sources, Gifts & Premiums China Sourcing Fair
· Global Sources, Home Products China Sourcing Fair
· Global Sources, Solar & Energy Saving Products China Sourcing Fair
· Global Sources, Electronics China Sourcing Sourcing Fair
· Global Sources, Fashion Accessories China Sourcing Fair
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Networking expo for the logistics and supply chain management industry
When: 22 Mar 2012 – 23 March 2012
Venue: Gallagher Convention Centre, Midrand, Johannesburg
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Cards & Payments Solutions - even bigger and better for 2012
When: 13 Mar 2011 – 14 Oct 2011
Venue: Earls Court, South Hall, London
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