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The Confectionery Industry Updated Report Available
BY Kim Imrie
South Africa
19 May 2016
R 2 040.00 (ZAR)  
estimated $ 143.95 (USD) *
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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.


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.


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