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Manufacture of Breakfast Cereals Updated Report Available
BY Yasmin Mahomedy
South Africa
02 July 2016
R 2 040.00 (ZAR)  
estimated $ 143.91 (USD) *
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The Manufacture of Breakfast Cereals


This report focuses on the manufacture of breakfast cereals in South Africa, which has an estimated value of R4.3bn a year. The breakfast cereals market is dominated by three large companies, Tiger Brands, Pioneer Foods and Kellogg’s South Africa, who together have cornered more than 70% of the market.


Challenging conditions


Like other manufacturing sectors, this sector is operating under challenging trading conditions as a result of rising input costs and weaker consumer demand due to a lack of disposable income. Tough conditions have been exacerbated by the drought and recently introduced regulations that aim to limit the amount of salt and sugar used in breakfast cereals as well as the use of genetically modified wheat and maize. However, the functional food category has shown growth as more consumers become more health conscious and companies introduce new products in an attempt to remain competitive and gain market share.


Report coverage


The Manufacture of Breakfast Cereals describes current conditions, the growing trend towards food with less sugar and salt and other factors influencing the success of the sector. Twelve industry players are profiled, ranging from the three major companies to smaller companies such as Alpen Food Company South Africa (Pty) Ltd, based in the Western Cape, which employs 54 people and is jointly owned by the Pioneer Food Company and Weetabix Limited, headquartered in the United Kingdom. Also profiled is FutureLife, which was originally established as “a social project to help improve the lives of malnourished and disadvantaged people in sub-Saharan Africa.” The company focuses on the concept of functional foods that provide ‘additional health benefits’ and in 2015 Pioneer Foods acquired a 50% shareholding in the company.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 1
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 7
4.1.2. Regulations 8
4.1.3. Enterprise Development and Social Economic Development 9
4.2. Continental 10
4.3. International 12
5. INFLUENCING FACTORS 13
5.1. Economic Environment 13
5.2. Rising Operating Costs 14
5.3. Health Issues and Genetically Modified Organisms (GMOs) 14
5.4. Availability of Land and Crops 17
5.5. Technology, R&D and Innovation 17
5.6. Labour 18
5.7. Cyclicality 20
5.8. Environmental Concerns 20
6. COMPETITION 20
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 22
9. INDUSTRY ASSOCIATIONS 22
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 23
COMPANY PROFILES 25
AGT Foods (Pty) Ltd 25
Alpen Food Company South Africa (Pty) Ltd 27
Daisy Health Foods CC 29
Datex International CC 31
Future Life Health Products (Pty) Ltd 33
Heartland Foods (Pty) Ltd 35
Kellogg Company of South Africa (Pty) Ltd 37
Libstar Operations (Pty) Ltd 39
Nestle (South Africa) (Pty) Ltd 42
Pioneer Voedsel (Pty) Ltd 45
Tiger Brands Ltd 49
Vital Health Foods (Pty) Ltd 54