PepsiCo, Inc, U.S.-based food and beverage giant has agreed to acquire Pioneer Foods of South Africa in a deal valued at US$1.7bn, both companies said on Friday in South Africa.
The acquisition gives PepsiCo a foothold for expansion into the rest of Africa. PepsiCo will gain brands and manufacturing facilities in Nigeria, Kenya, and South Africa.
Zambian authorities have pulled an energy drink that they say contains Viagra from store shelves following test results from the country’s medicine regulator.
The drink, Natural Power SX High Energy Drink, which comes in 500ml cans and manufactured by Revin Zambia Limited, a local beverage producer is said to contain Sildenafil Citrate, a medication used to treat erectile dysfunction in men and pulmonary arterial hypertension and should never be taken without a prescription.
The drink which is said to be very popular among Zambian men is also exported to neigbouring countries – Uganda, Zimbabwe, Malawi and South Africa.
Distell Group, a leading South African-based cider, spirits and wine producer with foot prints in several African countries including Nigeria and across the globe reported half-year revenue growth of 9.1% through the end of December. Revenue rose to R14.4bn rand (US$1bn) on -0.5% volumes.
In South Africa, revenue was up 7.4% on a negative 2.2% volume. The growth was led by a 10.6% sales boost in the spirit segment, particularly Gin and Vodka, with whisky recovering. Cider and RTD (ready-to-drink) performed strongly with revenue growing 7.6%, led by Savanna, Extreme and Bernini.
Distell Group, South Africa’s leading cider, spirits and wine producer reported revenue growth of 10.4% for the full-year ending in June 2018. Revenue grew to R24.2bn rand ($1.9bn) on a 4.6% volume lift.
The company reported a strong growth of 10.1% in South Africa, its home market on 4.4% higher volumes amid low GDP growth and higher cost of living putting increased pressure on consumer disposable income.
Distell derives 74% of its revenue in South Africa.
South African wines, spirits and liqueur producer, KWV has announced the launch of Wild Africa Cream Liqueur into the Nigerian wine market. The introduction took place at an event held at the Radisson Blu Hotel, Ikeja, Lagos on Friday, 7th September 2018.
Speaking at the event, the Brand Manager RTDs Liqueurs, KWV SA, Barry Badenhorst, said the entrance of Wild Africa is to celebrate Nigeria and to satisfy the yearnings of the consumers who want the products.
The Board of UAC Foods Limited has appointed Dr Oladele Ajayi as its new Managing Director.
Dr Ajayi holds a PHD in Mechanical & Process Engineering from the University of Strathclyde, United Kingdom and an alumnus of the Advance Management Program of Harvard Business School.
South Africa’s proposal to tax sugar sweetened beverages which was first announced in 2016 finally came into effect on Sunday 1st April 2018.
The new sugar tax called the ‘Sugary Beverages Levy” and a part of the “Health Promotion Levy” is set at 2.1 cents per gram of sugar content that exceeds 4g per 100ml. According to the new law, the first 4g per 100ml are levy free.
“Sugar” refers to intrinsic and added sugar and other sweetening matter. However, fruit juice is exempt.
South African wine, spirits and cider maker Distell Group, on Friday reported a 9.1% revenue growth for the first six months of its financial year ending on 31 December 2017. Sales rose to R13.4bn rand ($1.15bn) from R12.3bn in 2016, driven by a 3.6% volume increase (403 million litres).
Nampak Limited, South Africa-based beverage can, bottle and paper producer said that its full year results ending on 30th September were negatively impacted by economic headwinds, leading to decreased consumer spending characterized by trading down, product substitution and downsizing to smaller sizes.
The firm which is Africa’s largest manufacturer of cans, bottles, plastic and paper packaging for the food and beverage industry with operations in several African countries including Nigeria and the UK said that revenue for the 2016/2017 financial year fell 2% to R18.8bn ($1.37bn) with Operating profit before capital profit on sale and leaseback of properties growing 14% to R961m ($70m). However, net profit declined 76% to R356m ($26m), caused by the one-off comparison of R1.36bn ($99m) capital profit on sale and leaseback in 2016.
Italy-based Gruppo Campari said it has signed an agreement to buy cognac brand Bisquit from South Africa’s Distell Group for €52.5m ($62m).
Commenting on the acquisition, Campari CEO Bob Kunze-Concewitz said, “We are very pleased to have acquired Bisquit Cognac, as it gives us the opportunity to expand our offering into the premium and growing cognac category.”
