The report on the Confectionery Industry describes the state of the industry, major players and factors influencing the sector’s success in South Africa, on the continent and internationally. There are comprehensive profiles of 23 companies including the major industry players Mondel?z South Africa (Cadbury), Tiger Brands (Beacon), Nestlé and Premier Foods (Manhattan). The report includes profiles of Lodestone Brands, which is being sold by former Steinhoff International CEO Markus Jooste’s Mayfair Holdings, independent companies such as Beyers Chocolate and artisanal chocolatiers such as DV Artisan Chocolate, which attracted investment by Remgro subsidiary Invenfin.
South Africa’s confectionery industry comprises the chocolate market, valued at approximately R6.4bn and sugar confectionery, which is valued between R12.5bn and R13.5bn. The industry was under pressure during 2018, mainly due to a challenging economic climate, low consumer confidence and increasing imports. Demand for sugar-free products, premium and artisan chocolates is driving the growth of niche manufacturers.
Cash-strapped shoppers, especially lower-middle income groups, cut down on non-essential goods, especially as increasing commodity costs forced manufacturers to pass rising costs on to consumers. Sales are being affected by the economic climate and by consumers buying healthier snack products. The market share of the largest companies is being challenged by brands which are imported duty-free and from the growing number of niche chocolatiers. The chocolate industry faces the threat of declining cocoa supply due to changing climate conditions.