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Confectionery Industry South Africa

The Confectionery Industry in South Africa 2019

Yasmin Mahomedy | South Africa | 17 January 2019

The Confectionery Industry in South Africa 2016

Kim Imrie | South Africa | 19 May 2016

The Confectionery Industry in South Africa 2015

Kim Imrie | South Africa | 13 April 2015

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Report Coverage

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.

Confectionery Industry

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.

Challenges Ahead

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.

Read More..
The Confectionery Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $100.29 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.20 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2016-05-19

R 1 900.00(ZAR) estimated $100.29 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2015-04-13

R 1 900.00(ZAR) estimated $100.29 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 6
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 8
4.3. International 10
5. INFLUENCING FACTORS 11
5.1. Economic Environment 11
5.2. Rising Operating Costs 11
5.3. Consumption Patterns 11
5.4. Cyclicality 11
5.5. Technology, Research and Development (R&D) and Innovation 12
5.6. Labour 13
5.7. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 16
7. SWOT ANALYSIS 16
8. OUTLOOK 17
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 18
10.1. Publications 18
10.2. Websites 18
APPENDIX 1 19
Summary of Major Players 19
COMPANY PROFILES 23
ALDOR AFRICA (PTY) LTD 23
ART OF AFRICA CC 24
CARING CANDIES CC 26
CHOCOLATE TIME CC 28
CHOCOLATS MARIONNETTES CC 30
DE VILLIERS CHOCOLATE (PTY) LTD 32
DICKS SWEETS CC 34
ETHNIC CANDY CC 36
FERRERO SOUTH AFRICA (PTY) LTD 37
HOCHDORF SOUTH AFRICA (PTY) LTD 39
HONEST CHOCOLATE CC 40
HUGUENOT FINE CHOCOLATES CC 42
KEES BEYERS CHOCOLATE CC 44
LINDT AND SPRUNGLI (SOUTH AFRICA) (PTY) LTD 46
LODESTONE BRANDS (PTY) LTD 48
MARS CONSUMER PRODUCTS AFRICA (PTY) LTD 51
MONDELEZ SOUTH AFRICA (PTY) LTD 53
NESTLE (SOUTH AFRICA) (PTY) LTD 55
PREMIER FMCG (PTY) LTD 59
SALLY WILLIAMS FINE FOODS (PTY) LTD 64
SWEET TEMPTATIONS TOFFEES (PTY) LTD 66
TIGER BRANDS LTD 68
TRADE KINGS (SOUTH AFRICA) (PTY) LTD 73
VON GEUSAU CHOCOLATES CC 75

Report Coverage

The Confectionery report describes the sector in South Africa, discusses current conditions and factors influencing the success of the industry. Twenty-one companies are profiled, including the multinational confectionery manufacturers and importers, as well as Kees Beyers Chocolate, the largest local manufacturer of chocolate products which acquired the Sweetie Pie brand in 2013. Also profiled are small artisanal confectioner, DV Chocolate which manufactures branded chocolate for Woolworths, and micro-enterprise Shooga Shooga, which manufactures and wholesales sugar confectionery.

The Confectionery Sector

This report focuses on the South African confectionery sector which analysts estimate is growing at a compound annual growth rate (CAGR) of 2.4%, giving an industry value of between R12.4bn and R13.5bn. Chocolate confectionery, valued at R6bn, is dominated by three multinational companies, Mondelez South Africa, Tiger Brands and Nestlé, while sugar confectionery manufacturers include Lodestone Brands which manufactures Candy Tops sweets, Trade Kings, a Zambian company which expanded into South Africa in 2005, and Manhattan, which has been owned by Premier Foods since May 2013. Although there are no confirmed figures, the sale of sweets by spaza shops and informal traders is considered to be substantial.

Opportunities and Challenges

The market share of the largest three chocolate companies is being eroded by imported brands and from the growing number of niche, artisanal chocolatiers who have entered the industry. Market share for the big three dropped from approximately 73% in 2013 to 68% at the end of 2015. However, despite tough economic conditions, growth of up to 15% has been forecast for the premium confectionery segment which is currently dominated by imported brands Lindt and Ferrero Rocher. Stakeholders believe there are also opportunities in the lower end of the market where smaller more affordable package sizes are being sold, often by hawkers and other informal traders.

Read More..
The Confectionery Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $100.29 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.20 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2019-01-17

R 1 900.00(ZAR) estimated $100.29 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2015-04-13

R 1 900.00(ZAR) estimated $100.29 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 10
4.1.2. Regulations and Government Programmes 12
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 15
4.3. International 16
5. INFLUENCING FACTORS 18
5.1. Economic Environment 18
5.2. Consumption Patterns 20
5.3. Research and Development (R&D) and Innovation 20
5.4. Demand for Cocoa Exceeding Supply 21
5.5. Environmental Concerns 22
5.6. Price Versus Health Concerns 23
5.7. Labour 23
5.8. Cyclicality 24
6. COMPETITION 25
6.1. Barriers to Entry 25
7. SWOT ANALYSIS 26
8. OUTLOOK 26
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 28
10.1. Publications 28
10.2. Websites 28
COMPANY PROFILES 29
Art of Africa CC 29
Chocolats Marionnettes CC 31
Coach House Nougat Company (Pty) Ltd 33
Dicks Sweets CC 35
Ethnic Candy CC 37
Ferrero South Africa (Pty) Ltd 38
Honest Chocolate CC 40
Huguenot Fine Chocolates CC 42
In-Sync Consultants (Pty) Ltd 44
Inkanyezi Chocs (Pty) Ltd 46
Kees Beyers Chocolate CC 48
Lindt and Sprungli (South Africa) (Pty) Ltd 50
Lodestone Brands (Pty) Ltd 52
Mars Consumer Products Africa (Pty) Ltd 55
Mondelez South Africa (Pty) Ltd 58
Nestle (South Africa) (Pty) Ltd 60
Premier FMCG (Pty) Ltd 63
Sally Williams Fine Foods (Pty) Ltd 67
Sweet Temptations Toffees (Pty) Ltd 69
Tiger Brands Ltd 70
Trade Kings (South Africa) (Pty) Ltd 75
Von Geusau Chocolates CC 77

Report Coverage

This report focuses on the local confectionery market and specifically on the chocolate confectionery market which despite tough economic times and growing concerns over health aspects and sustainability issues, continues to grow at 10% per annum. The report also profiles 21 industry players, ranging from Mondelez South Africa which employs 2,200 people to recently established small enterprise Inkanyezi Chocs (Pty) Ltd t/a Arriba Chocolates, which has 18 employees at its Randburg factory.

Value of the South African Confectionery Market

The value of the South African confectionery market is between R11bn and R12bn with chocolate confectionery accounting for approximately half of this total. Locally the market share of the three main chocolate manufacturers, multinationals Mondelez South Africa, Tiger Brands and Nestlé has contracted as a result of the increasing popularity of premium and handmade chocolates. Meanwhile the sugar confectionery sub-sector is dominated by two regional companies, Candy Tops and Trade Kings

Global strategies

Multinationals in South Africa are following global strategies of improving efficiencies in their supply chains. This includes improving economies of scale, which often entails selling off non-core brands to small independent companies. The global trend of centralising production is also having an effect on the local manufacturing industry.

Read More..
The Confectionery Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $100.29 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 70.20 (USD)*

Historical Reports

The Confectionery Industry in South Africa 2019-01-17

R 1 900.00(ZAR) estimated $100.29 (USD)*

View Report Add to Cart

The Confectionery Industry in South Africa 2016-05-19

R 1 900.00(ZAR) estimated $100.29 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 10
4.1.2. Regulations & Government programmes 11
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 13
5. INFLUENCING FACTORS 15
5.1. Economic Environment 15
5.2. Demand for Cocoa exceeding Supply 15
5.3. Rising Input Costs 16
5.4. Supply Chain 17
5.5. Environmental Concerns 17
5.6. Health Concerns 18
5.7. Labour 19
5.8. Cyclicality 20
6. COMPETITION 21
6.1. Barriers to Entry 21
6.2. Research and Development (R&D) and Innovation 21
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 24
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 25
ORGANOGRAM 26
COMPANY PROFILES 28
CHOCOLATS MARIONNETTES CC 28
COACH HOUSE NOUGAT COMPANY (PTY) LTD 30
DICKS SWEETS CC 32
ETHNIC CANDY CC 34
HONEST CHOCOLATE CC 35
HUGUENOT FINE CHOCOLATES CC 36
IMSOFER MANUFACTURING (PTY) LTD 38
INKANYEZI CHOCS (PTY) LTD 40
KEES BEYERS CHOCOLATE CC 41
LINDT AND SPRUNGLI (SOUTH AFRICA) (PTY) LTD 43
LODESTONE BRANDS (PTY) LTD 45
MONDELEZ SOUTH AFRICA (PTY) LTD 47
NESTLE (SOUTH AFRICA) (RF) (PTY) LTD 50
PREMIER FOODS (PTY) LTD 53
SALLY WILLIAMS FINE FOODS (PTY) LTD 56
SHOOGA SHOOGA (PTY) LTD 58
SWEET TEMPTATIONS TOFFEES (PTY) LTD 59
TIGER BRANDS LTD 60
TRADE KINGS (SOUTH AFRICA) (PTY) LTD 67
VON GEUSAU CHOCOLATES CC 69
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