Blog: Katy AskewConsumer goods giant PZ Cussons expanding Africa food business

Katy Askew | 22 May 2013

Personal care group PZ Cussons has said it is making progress in expanding its African edible oils business and is preparing to launch a consumer food brand in the country.

PZ Cussons first began trading in Africa over 100 years ago. In 2010, the group launched PZ Wilmar Ltd - a Nigerian JV with Wilmar International - to build a palm oil refinery in the country and build up an associate food ingredients business.

The company recently completed construction of the refinery "on time and to budget" and the group said production began during the January to April trading period.

With sales of bulk oil already under way, PZ Cussions provided a little more detail on its plans for the June launch of a consumer food ingredients brand - Mamador - at a presentation on Africa yesterday (21 May).

Management was upbeat on the company's prospects in the market and, while food remains a small proportion of the Imperial Leather maker's revenue, it clearly has plans for the long-term development of the sector.

And it wasn't just management that struck a positive note on the group's prospects in the African food sector. Panmure Gordon analyst Graham Jones noted: "PZ Cussons revealed a major new brand, Mamador, which... should convert consumers from badly produced, cottage industry cooking oil to a safe, hygienic consumer brand."

He added: "Nigeria undoubtedly faces many challenges, but we see PZ Cussons as very well placed to benefit from the huge potential the country offers."

The African food business is far from poised become a significant part of the PZ Cussons portfolio. However, PZ Wilmar should be viewed as a slow-burning growth stream that has significant potential to expand in the long-run.

Indeed, the fledgling edible oils business will likely benefit from the highly experienced PZ Cussons management team and the strong distribution and logistical infrastrucutre that the company boasts in Africa.


BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

BLOG

Premier Foods pension news offers cheer but challenges remain

Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....

just-food homepage



Forgot your password?