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The Tea and Coffee Industry Updated Report Available
BY Yasmin Mahomedy
South Africa
08 February 2016
R 2 040.00 (ZAR)  
estimated $ 147.79 (USD) *
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The South African Tea and Coffee Industry


This report focuses on the South African tea and coffee industry. South Africans consume more than 20,000 tons of coffee, 20 million kilograms of black tea and 7 million kilograms of Rooibos tea annually. The Rooibos industry contributes about R500m to national GDP and directly employs between 4,500 and 5,000 people. In the Honeybush sector approximately 180 metric tons of Honeybush tea is produced, with 90% exported in bulk form, limiting the annual value of the crop to just over US$250,000. The retail value of the entire tea market is estimated at more than R2.1bn.


Uneconomical Local Production


Domestic black tea and coffee production have become uneconomical, mainly as a result of high labour costs. Black tea producers have been under severe financial difficulties since 2000 and in the beginning of 2003 most of the tea estates in the country went out of production. The six tea estates that remain are struggling to survive and only remain operational because they receive funding from the state. In the coffee sector, most of the 20,000 tons of coffee consumed comes from imported coffee beans. The few coffee farms that still function have managed to survive by establishing roasteries and catering to the tourism market.


Report Coverage


The South African Tea and Coffee Industry highlights current conditions and discusses the factors influencing the success of the sector. Thirty-nine companies involved in the relevant agricultural, manufacturing, wholesale and retail sub-sectors are profiled. Companies include coffee manufacturer Nestlé South Africa, which dominates the coffee sector with 37% of the market by value. Also profiled are National Brands, Unilever and Joekels Tea Packers and Tea Blenders which dominate the tea packing sector with a combined market share of 96%. Profiles for popular retail outlets such as Vida E Caffe Holdings (Pty) Ltd t/a Vida Caffe and The Bubble Tea Company (Pty) Ltd are included in this report.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 16
4.1.2. Regulations and Government Programmes 16
4.1.3. Enterprise Development and Social Economic Development 18
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 22
5.1. Government Intervention 22
5.2. Labour 22
5.3. Economic Environment 23
5.4. Rising Input Costs 23
5.5. Land Reform Policy 24
5.6. Consumer Health Concerns 24
5.7. Environmental Concerns 25
5.8. Technology, Research and Development (R&D) and Innovation 25
6. COMPETITION 27
6.1. Barriers to Entry 28
7. SWOT ANALYSIS 28
8. OUTLOOK 29
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 30
COMPANY PROFILES 31
A J Products (Western Cape) CC 31
Assagay Coffee CC 33
Austrian Coffee Estate CC 35
Back To Basics (Pty) Ltd 36
Barnes Tea and Coffee Merchants CC 38
Beaver Creek (Pty) Ltd 40
Bubble Tea Company (Pty) Ltd (The) 42
Cafe Caps (Pty) Ltd 43
Cape Natural Tea Products (Pty) Ltd 44
Carmien Tea (Pty) Ltd 46
Caturra Coffee Company (Pty) Ltd (The) 49
Chicory SA (Pty) Ltd 51
Clipper Coffee and Tea CC 53
Coffee Capsules Direct (Pty) Ltd 55
Colombo Tea and Coffee Company (Pty) Ltd 56
Focus Circle CC 58
Incobrands (Pty) Ltd 60
J Wollbrandt 62
Joekels Tea Packers (Pty) Ltd 64
L C Packaging (S A) (Pty) Ltd 66
Mastertons Coffee and Tea Specialists (Pty) Ltd 68
MK Hendrikz 70
National Brands Ltd 72
Nestle (South Africa) (Pty) Ltd 75
New Look Packers CC 78
Ntingwe Farming (Pty) Ltd 80
Peacock Tea And Coffee (Pty) Ltd 82
Rooibos Ltd 84
Royal Tea Packers CC 87
RT Cain 89
Sabie Valley Coffee CC 90
Sanpeace (Pty) Ltd 91
Seattle Coffee Company (South Africa) (Pty) Ltd 92
Strictly Coffee CC 94
Taste Holdings Ltd 96
Tea and Coffee Distributors (Eastern Province) CC 101
Unilever South Africa (Pty) Ltd 103
Venteco SOC Ltd 106
Vida E Caffe Holdings (Pty) Ltd 108