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July 6, 2021updated 07 Jul 2021 6:23pm

South Africa’s RFG acquires frozen foods business of PepsiCo-owned local peer Pioneer

The deal includes brands such as Mama's, Today, Man's Meal and Big Jack.

South Africa’s RFG Holdings has acquired frozen-food assets from local peer Pioneer Foods for an undisclosed sum.

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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.
by GlobalData
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The products sold include frozen pies, pastry, sausage rolls, pizza and party packs sold under brands such as Today, Mama’s, Big Jack and Man’s Meal.

RFG, which has a product portfolio ranging from canned fruit and vegetables to baked and frozen goods, said the business it has bought commands “a strong presence in the frozen pies and pastry segment and services the South African top-end retail market”.

The products are manufactured at a facility in Atlantis in the Western Cape and products are distributed nationally.

The deal does not include the operations in Botswana and Eswatini.

Bruce Henderson, CEO of Groot Drakenstein-based RFG, said the acquisition is aligned with its strategy of expansion through “value-accretive” acquisitions.

“The frozen pie and snack category in the top-end retail market complements RFG’s growing pies and pastries business. The acquisition has the potential to generate good synergies for the company while also diversifying our offering into the retail channel,” he said.

The transaction, which is subject to approval by the country’s Competition Commission, is expected to be effective from January next year.

Just Food has asked Tygervalley-based Pioneer, which manufactures brands such as Wellington’s sauces, Weet-Bix cereal and Peck’s Anchovette spread, for its reaction to the deal.

US food and beverage giant PepsiCo announced its acquisition of Pioneer in July but it only cleared its final competition hurdle in March last year.

Last month, RFG announced it would promote deputy CEO Pieter Hanekom to the top job of chief executive. Hanekom will succeed Henderson in October.

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Free Report
img

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.
by GlobalData
Enter your details here to receive your free Report.

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