R H O D E S
F O O D S
feature
CONSUMERS TAKE TO THE RHODES
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Rhodes Foods FEATURE
It’s one of the most famous names in South African history and a food brand associated with superior quality and value. “We are a young, dynamic company taking a number of market areas by storm,” says Gerhard Kotze, Managing Director Rhodes Foods
T
ake a Pepper Steak Pie with a dash of Melon and Ginger Jam and you have a slice of South African late pioneering history and a taste of contemporary quality food. The pie and the jam are from the range of Rhodes Food, a name part synonimous with the famous leader of the emerging nation, and today some of the finest foods available to the consumer. A diversified food business, the Rhodes Food Group specialises in ready and prepared meals for the up market retail sector. Long-life products are another speciality, with a diverse range of canned fruits, vegetables and jams.
Rhodes a big player “We are a big player in the South African market,” says Gerhard Kotze, Managing Director Rhodes Foods. “We strive to be the Number One or Two in the categories in which we are competing, and would like to be the preferred supplier of these products.” Based in the fertile Franschhoek valley in the Western Cape, Rhodes Food Group has a rich heritage dating back to the late 1800. At the time most farms in the area were under vines, but all was to change towards the end of the century. A phylloxera epidemic swept through, destroying thousands of hectares of rootstock (meantime the aphid-like insect was
devastating European vineyards, notably those in France). Enter Cecil John Rhodes, English-born businessman, mining magnate, imperialist and South African politician In 1897 - a year after his resignation as Cape Prime Minister following the Jameson Raid debacle - Rhodes began buying up the now destitute farms in the Stellenbosch, Wellington and Groot Drakenstein areas. And together with his partners, Alfred Beit and De Beers, Rhodes introduced modern farming methods and planted some 200 000 deciduous trees in newly formed orchards. Then in 1902 as Rhodes was dying, a new company, Rhodes Fruit Farms Ltd, was born, and for the next century enjoyed great success.
Quality products; outstanding service. Eleven years ago a privately-owned food group bought the company from Anglo American Farms and the Rhodes Food Group (Pty) Ltd in its current form was established. Today, Rhodes Food Group is a diversified foods business that prides itself on delivering quality products and outstanding service. While its head office is still in the Franschhoek Valley, the Group has highly successful operations in the Western
We know our product qualities are the best or at least equal best
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Rhodes Foods FEATURE
Cape, Gauteng, Limpopo and the Kingdom of Swaziland. “In years gone by Rhodes was competing mainly on price and the Rhodes brand was not particularly well marketed. But in recent years this has changed significantly,” says Gerhard Kotze. “We know our product qualities are the best or at least equal best in the market and so we decided to give our brand a more up-market image and also make significant changes to the packaging. There was a big media campaign and the overall feed back is very positive. I’m very optimistic about the future of the Rhodes brand. Rhodes Food Group’s business is divided
broadly into two divisions; Rhodes Foods and Fresh Foods. The Rhodes Foods product range consists of canned deciduous fruit, citrus and pineapples, canned vegetables, tomato products, jam and juice concentrates and purées. Fresh Foods’ products include prepared meals, fresh pasta, pasta sauces, quiches, pies and a range of dairy products. The Rhodes Group also has a vertically integrated dairy operation producing a range of dairy products including specialty cheeses under the Portobello brand. Other brand names in the Group are Rhodes, Hazeldene, Fruit to go, and Magpie, as well as leading local and international private labels. 40% of the group’s
You will get the best in a Rhodes product
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manufactured to fit
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Target market Kotze says Rhodes sell both to cost sensitive consumers and the high end with more money to spend and willing to try new products. He places the Group’s natural market on an LSM of five to ten. The SAARF LSM (Living Standards Measure) has become the most widely used marketing research tool in Southern Africa. It divides the population into 10 LSM groups, 10
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(highest) to 1 (lowest) and is a unique means of segmenting the South African market. It cuts across race and other outmoded techniques of categorisation, and instead groups people according to their living standards using criteria such as degree of urbanisation and ownership of cars and major appliances. Rhodes Food Group is constantly innovating. Last year it launched the Chakalaka range. Chakalaka is a rapidly growing segment in the South African market and Rhodes has identified this as an opportunity to keep abreast of trends.
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Rhodes Foods FEATURE
More recently it became the first to come to market in South Africa with a Tomato Paste in Plastic - a 120ml cup in clear plastic with an ‘easy peel’ lid for cooking convenience. The added advantage of the paste in plastic is the purpose that it serves when refrigerating – no more concerns of refrigerating a tin with left over paste when the convenient cup can be stored straight into the fridge for further use. Over the last few years, the Rhodes Group has bought and refurbished a vegetable factory in Limpopo, bought a pie factory operation - Magpie Foods - and more recently launched a Johannesburg based fresh foods facility.
Latest acquisition? Further organic growth and potential acquisitions are always a consideration, and only this month the Group announced that it will be acquiring the South African fruit canning operations of USA-based Fresh Del Monte Produce Corporation - pending approval from the Competition Commission of South Africa. The extensive Del Monte canning operation based in Tulbagh in the Western Cape is used for the canning of apricots, peaches, pears and fruit cocktail. The acquisition will compliment Rhodes’ existing operations and product range which also includes pineapple, citrus and a quality range of fruit in plastic pots and resealable jars from its Swaziland operations. Altogether it will make Rhodes a significant player in the international canned fruit arena. If the Competition Commission approves the deal, it will become effective from October 1st in time for the South African summer fruit season. As well as innovation, quality products and excellent customer and supply chain relationships, the Rhodes corporate culture embraces sound ethical standards and leadership by example.
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a fruitful
relationship
“We are a company striving to comply with very high ethical, safety, health and environmental standards,” says 47 year old Gerhard Kotze.
You will get the best All the managers from the CEO down are very hands-on and involved in operations. Management are readily accessible to employees and open, honest communication is a given. “We value our people for sure. And this extends to our customers. We want to give them a good service, with products and prices that they are excited about. We pride ourselves on having very good customer relationships in good times and difficult times. “We are a young, dynamic company taking a number of market areas by storm. We are supplying the public with value for money, very high quality products that people can try and trust. “And we will never compromise. So we say “You will get the best in a Rhodes product.” END
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