UNILEVER SOUTH AFRICA
UNILEVER SOUTH AFRICA
Global Brand Continues
Delivering Big Brands Into Africa PRODUCTION: Manelesi Dumasi
Unilever is making moves that will see it established as the long-term, sustainable African organisation that allows consumers to look good, feel good and get more out of life. Its leading product range and unrivalled reach look set to solidify this goliath’s position at the top of all the industries in which it plays. 2 / www.enterprise-africa.net
INDUSTRY FOCUS: FOOD & DRINK
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The growing worldwide demand for quality food service offerings has reached South Africa. High-quality, fairly priced food, served in an environment that is welcoming and friendly is no longer enough. You must go above and beyond to build genuine client relationships and generate repeat business. So how can South Africa’s top restaurant chains, and leading independent food outlets differentiate themselves in a time when competition is rife and customers are looking for individuality but uniform quality. The answer could be partnering with experienced, reputable and professional industry partners. Take Unilever Food Solutions for example. Active in South Africa for many years, Unilever’s global reputation has helped the company to become a
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‘go-to’ name. The food service and restaurant industry has grown significantly in recent years, and has benefitted from the country’s developing tourism industry. Even through the tough economic conditions that thwarted much growth in 2016 and 2017, the quick service restaurant (QSR) sector displayed steady growth, including a 29% contribution to South Africa’s R587 billion franchising sector (which accounts for more than 13% of GDP). The country is home to tens of thousands of food service business, ranging from street stalls to full service restaurants to Michelin star world famous eateries. The attraction of a great restaurant has been proven and location developers, such as builders of shopping centres, are looking to attract the best restaurants to help drive traffic. Growth in sales in the F&B sector
between 2017 and 2020 of 5.6% is expected in South Africa, according to JHI CEO, Nomzamo Radebe. Unilever Food Solutions is a chef’s best friend, offering ingredients, equipment and advice. Utilising the Unilever brand portfolio, food businesses can order Hellmann’s, Knorr, Carte D’or, Robertson’s, Marvello, Flora, Meadowland, Fine Foods, Joko and more. The Unilever range, knowledge, coverage and speed of service is unrivalled in South Africa, and the company is recognised in its own right as a brand of major importance in terms of contribution to the economy. A R1.4 billion home care factory was opened in South Africa in 2015, a R500 million ice cream factory was opened in the same year, and a R511 million investment into the Indonsa factory was also completed in 2015, adding to an already strong
UNILEVER SOUTH AFRICA
infrastructural position. One things is for sure, this global food, beverage and household powerhouse sees Africa and southern Africa as an opportunity. SECURING BUSINESS In September 2017, Unilever announced that it would purchase a 25.75% shareholding in its subsidiary, Unilever South Africa, held by Remgro. The exchange would involve Remgro taking the Unilever Spreads business in Southern Africa and an additional R4.9 billion. Taking full control of the Unilever South Africa business will allow Unilever to quickly advance the
business in the region. Luc-Olivier Marquet, Executive Vice President of Unilever SA said: “Unilever South Africa is a great business, well positioned for sustainable long-term growth. By giving us full ownership of the business, this transaction means we are better placed to accelerate that growth while the Spreads business moves on to Remgro where it augments their current portfolio and can be sure of a great future.” Jannie Durand, CEO of Remgro, said: “Through this transaction, Remgro has exchanged its minority stake in Unilever South Africa for full ownership and control of the
// THIS TRANSACTION IS A VOTE OF CONFIDENCE IN THE FUTURE OF SOUTH AFRICA, BOTSWANA, LESOTHO, NAMIBIA AND SWAZILAND //
Unilever Spreads business in South Africa, Botswana, Lesotho, Namibia and Swaziland plus cash. We believe the Unilever Spreads business in these Southern Africa countries is an attractive business, with leading brands which include Rama, Stork, Flora and Rondo with good growth prospects. “This transaction is a vote of confidence in the future of South Africa, Botswana, Lesotho, Namibia and Swaziland.” Durand thanked Unilever for a positive longstanding relationship and wished Unilever and the employees of Unilever South Africa well for the future. He also welcomed the prospect of having the Spreads business as part of the Remgro Group. It is reported that Remgro wanted more control and further ability to shape the future of Unilever South Africa and saw the opportunity with Spreads.
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INDUSTRY FOCUS: FOOD & DRINK
AFRICA HUB Further good news for Unilever in South Africa came in September when the company announced it would move into a purpose built African hub. The 5-star green rated modern and sustainable office in Sandton will help Unilever to drive its Brighter Future for Africa strategy and continue to push business on the continent. Management was understandably excited. “Not only is this a modern open plan collaborative environment for our pan-Africa staff to operate at the heart of the changing retail, marketing and consumer landscape in Africa,” said Unilever Africa President, Bruno Witvoet, “it’s also a springboard for our South African talent into Africa and for our global and African talent to contribute in turn to the growing
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body of knowledge on African business here in South Africa.” He continued: “As a truly pan-
African company we see the future of African business in collaboration, breaking down boundaries and
UNILEVER SOUTH AFRICA
exchanges of talent. That’s why we set up a new African Hub Office and, as a thriving well connected African capital, Johannesburg is the ideal location. We look forward to working from here with our partners, customers and suppliers to use our great brands to help build a brighter future for Africa.” Brands including Knorr, Lipton, Omo, Sunlight and Pepsodent will all be managed from the new hub – the Atholl Towers. Unilever South Africa, which is headquartered in Durban, will also fall under direction set out from the new African hub. WUHU In a rebrand of its popular Unilever Deals programme, the company has recently launched Wuhu, a digital FMCG deals and rewards platform. Previously, consumers were rewarded for purchasing Unilever goods, and the platform quickly built a subscribership of more than 700,000 people. Now, Wuhu has been redesigned and upgraded in partnership with Vodacom and delivers real-time digital rewards to consumers, allowing Unilever to convert online consumers to offline sales. Lunga Ngcime, Digital Marketing Lead: Africa – Unilever South Africa said: “Since inception, the platform has realised significant return on investment for Unilever brands, and earned numerous awards while building up the number of retailers to include Checkers, Shoprite, Pick n Pay, Dischem and Spar. The platform has also built nearly 700,000 subscribers that are returning on a monthly basis to get their favourite deals. “We are excited about our partnership with Vodacom. Working with a brand like Vodacom means we can extend more meaningful rewards to our loyal customer base.”
J S Engineering cc
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//AS A TRULY PAN-AFRICAN COMPANY WE SEE THE FUTURE OF AFRICAN BUSINESS IN COLLABORATION, BREAKING DOWN BOUNDARIES AND EXCHANGES OF TALENT // This initiative is taking mobile couponing to the next level in South Africa, and is setting the standard for interaction with consumers in the future. According to Unilever, ‘on any given day, more than two billion people use Unilever products to look good, feel good and get more out of life’. In South Africa, the company has seven factories and two offices employing some 3500 people. This is a company that truly has an impact. With its new
African hub, new consumer reward platform, and with management constantly making decisions that will allow the business to grow, you can expect more to come from Unilever in Southern Africa. To the delight of chefs all over the country, Unilever is here to stay and is now the perfect partner for those in the food service sector.
WWW.UNILEVER.CO.ZA
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AFRICA
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
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June 2018
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