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FMCG update: competition for turf

Aug 25th 2011, 08:11


FMCG update: competition for turf

Local food manufacturers will soon be challenged by two international FMCG players, namely Diplomat and Iffco. Iffco is a food manufacturer and distributor based in Dubai and has a presence in more than 85 countries. Diplomat is one of Israel’s largest FMCG distributors and has made its way into South Africa under an agreement with Proctor and Gamble (P&G). Both contenders have great financial and international influence and timed their entry well with the arrival of Walmart. Read more in the Two major newcomers plan to spice up SA's FMCG food market article.

Pioneer Foods has embarked on an aggressive attack on the local biscuit market; in an effort to achieve a 10% market hold on this sector, it will discontinue the Kwalilty Biscuit brand it bought in 2004 and introduce a wider selection from the middle of next year. AVI already controls a large portion of this sector (+-70%) and will have to defend its position as it comes under fire from new entrants. Iffco is set to shake up the industry even more with the launch of Tiffany, its imported biscuit and confectionery range. Read more on this update in the Pioneer Foods has ambitious plans for biscuit market article.

When considering that the South African biscuit market has annual sales of around R3 billion, we’re in for a biscuit war that’s going to make the kitchen a little crowded.

Read about more FMCG updates on our editor’s blog.

Yours in Retail and FMCG

P.S. Look out for the first Retail Technology Forum in Africa event, which will be held in Cape Town in September 2011. Find out more information about it on our website here.

Please feel free to make comments or raise new issues by emailing the editor

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SA’s fast-moving consumer goods (FMCG) market is set for a shakeup. At the retail level Walmart will see to it. At the product-supply level two new foreign entrants, Iffco Worldwide and Diplomat, aim to do the same, reports The Financial Mail.
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