PE firm SpearCapital takes 40% stake in South Africa's Peries Foods

Peries Foods, a South African meat processor, has sold a 40% stake in the business to local private-equity firm SpearCapital.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:

Market drivers and inhibitors
Five-year forecasts and the impact of COVID-19
The performance of the online channel versus offline
Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation

Assess developments within this sector to help your business thrive in 2022 and beyond.

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The PE firm bought the stake for US$4.5m via its Mauritius-based fund Spear Africa Holdings II, which is backed by European investors.

SpearCapital said the money will used to grow the Western Cape-based company’s processed meats division, including the creation of new products suitable for export into countries within sub-Saharan Africa.

Tim Leclercq, chief investment officer of SpearCapital, said Peries would be introducing “state-of-the-art manufacturing equipment to enable them to cost effectively produce higher-margin products”.

Steph Venter, the CEO and founder of Peries, said that with access to both Spear’s capital and African network, the business is poised for further expansion.

“The partnership is based on an already strong value system and I believe together we will create an exceptional company going forward,” he said.

This is the first investment from Spear’s Fund II, which is anchored by investors including Norfund, a Norway-based private-equity fund owned by the country’s government.

Netherlands-based Triple Jump, Norway-based venture-capital firm Holta Invest and Gjensidige Stiftelsen, the foundation behind Norwegian insurer Gjensidige Forsikring, are also investors in the fund, which plans to focus on providing growth capital to consumer-led businesses across southern Africa.

Free Report

What’s the forecast for the food and grocery industry?

Market drivers and inhibitors
Five-year forecasts and the impact of COVID-19
The performance of the online channel versus offline
Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation

Assess developments within this sector to help your business thrive in 2022 and beyond.

By GlobalData