James Murray – International Sales Director

1. James Murray – International Sales Director

3. …Welcome to…

4. Overview of the UK market • IFE 2017 • Overview of the SA and African market • Food & Hospitality Africa 2017

5. The UK Market • The UK grocery market was worth £174.5 billion in the year to April 2014, an increase of 2.8% on 2013. • The grocery market’s share accounts for 54.5p in every £1 of UK retail spending. • The UK foodservice sector expected to grow from a value of £46.6bn to £56.3bn by 2019 • The UK food and drink industry account for almost 16% of total manufacturing turnover (£81.8bn). It has 6,620 businesses and productivity has increased by 11% over the last five years.

12. Private label • Three times the global average in its share of grocery sales. • Almost half the total market (47.3% according to Kantar, March 2014). • Premium private label showing significant growth. • Positive consumer perception of private label.

13. Retail Trends • Convenience - 47,000 convenience stores, generating £37.4b in sales (YOY +5.2%). • Discounters – In 2010 Aldi and Lidl’s market share was 4.5%. Now it is 8.5%. • On-line – sales now account for 6% of total grocery market and forecast to be the fastest growing channel in the next five years. • Pound shops – growth particularly suited to world foods, snacks and confectionery.

16. 63% of new openings are food focused

30. The South African Market • South Africans are developing a taste for Western foods and are willing to try new products. • The growing convenience segment in retail food industry places great demand on imported food and beverage products. • Increasing urbanization (52% in 1990 compared to 62% in 2011). • A growing young population with an appetite for processed, easily available foods.

31. The South African Market • In 2013, retail contributed almost 12 percent to overall GDP. • The South African food retail market generated total revenues of $79.6 billion in 2012 (CAGR of 9.2% between 2008 and 2012). • Retail sales are expected to grow by almost five percent per annum in the next five years. • South Africa is the largest foodservice market in Sub-Saharan Africa. • Hospitality and tourism are the fastest growing sectors in South African economy.

32. The South African Market • South African food and beverage industry increased by 11.5 % in October 2014 compared with October 2013 - largest contributors take away/fast-food outlets (15.2%), restaurants/coffee shops (11%) and catering services (5.3%). • Food & drink imports increased by 37% from $3.7million in 2010 to $5.1million in 2012. • 14 million foreign visitors to South Africa in March 2014

33. South African Retail • South African food and beverage industry increased by 11.5 % in October 2014 compared with October 2013 - largest contributors takeaway/fast-food outlets (15.2%), restaurants/coffee shops (11%) and catering services (5.3%). • Food & drink imports increased by 37% from $3.7million in 2010 to $5.1million in 2012. • 14 million foreign visitors to South Africa in March 2014

34. South African Modern Market Approximate South African Retail Distribution Universe 2015 * Estimated

35. Shoprite Checkers • Shoprite Holdings Limited, the largest food retailer in South Africa • The retailer now operates over 1,800 stores in South Africa and Southern Africa with a market share of around 34%.

36. Shoprite Africa • Shoprite Export Division services its Africa Stores. • Namibia and Botswana need to be serviced by local agents. • Significant retail partner in Africa

37. Pick n Pay • Pick n Pay Stores Limited is the second largest SA retail chain. • Its retail formats include larger supermarkets,hypermarkets and family franchise stores, with hypermarketsbeing the largest.

38. PnP Supplier Portal • Access to information across provides transparency in sell out on own brands and opposition within your category • Loyalty Card base of 8,000,000 customers • The largest opportunity exists within the Franchise element of the Pick n Pay Account.

39. Spar • SPAR Group Limited (ZA), South Africa’s third largest retailer and presently operates around 900 stores in South Africa. • Own majority stakes in Spar Switzerland and Spar Ireland and Southern England. • It is chiefly a franchise operation focusing on smaller stores.

40. Massmart • Massmart Holdings Limited is a firm that owns retail brands such as Game, Makro, Builder’s Warehouse and CBW. As of 31 December 2011 Massmart operated 302 stores in South Africa and 12 other Sub-Saharan countries.  in June 2011, Walmart completed the purchase of 51% of the company's stock.

41. Food Lovers Market • With over 120 Food Lover’s Market stores and a presence in 11 countries, Food Lover’s Market Group also operates over 200 Fresh Stop convenience stores at Caltex service stations. • It recently bought artisanal coffee brand Seattle Coffee.

42. Sub Saharan Africa South Africa is the gateway to Sub Saharan Africa

43. Overview • Why Africa? • Total consumer spending in Africa is projected by McKinsey to reach US$1.4 trillion in 2020, US$540billion more than in 2010. • Estimated population of 932.3million across 49 countries the potential market at all levels is exceptional. • The rapidly expanding African population is expected to more than double to 2.4 billion by 2050. • The fastest growing middle class in the world

44. Sub Saharan Africa • Sub Saharan Africa is predicted to grow by 5-6% between 2011 and 2020, making it one of the world’s fastest-growing regions. • Most South African retailers have entered the Sub Saharan Africa market, successfully exceeding projections and expectations of income. • Sub-Saharan Africa will lead all regions except South Asia in growth of food sales which are expected to increase by nearly 60% over the next decade. • South Africa is seen as a gateway into Africa, however this is more relevant to Southern African countries and IndianOcean Islands. • Food and beverages are expected to account for US$175 billion of this increase.

45. 3-5 May 2017 A truly pan-African event that provides a platform for over 400 business to business exhibitors showcasing over 1,000 brands, ready to engage with over 10, 000 trade visitors.

46. 3-5 My 2017 A truly pan-African event that provides a platform for over 400 business to business exhibitors showcasing over 1,000 brands, ready to engage with over 10, 000 trade visitors.

47. The co-location of Hostex and IFEA • 350 + Exhibitors • 8 international pavilions • 6,500 visitors • 5% international (top 3 African countries were Botswana, Namibia and Zimbabwe). • A great mixture of HoReCaand retail buyers, wholesalers, distributors and importers, as well as food manufacturers

48. The co-location of Hostex and IFEA. • 350 + Exhibitors. • 8 international pavilions. • 6,500 visitors. • 5% international (top 3 African countries were Botswana, Namibia and Zimbabwe). • A great mixture of HoReCaand retail buyers, wholesalers, distributors and importers, as well as food manufacturers.

49. The co-location of Hostex and IFEA. • 350 + Exhibitors. • 8 international pavilions. • 6,500 visitors. • 5% international (top 3 African countries were Botswana, Namibia and Zimbabwe). • A great mixture of HoReCaand retail buyers, wholesalers, distributors and importers, as well as food manufacturers.

50. The co-location of Hostex and IFEA. • 350 + Exhibitors. • 8 international pavilions. • 6,500 visitors. • 5% international (top 3 African countries were Botswana, Namibia and Zimbabwe). • A great mixture of HoReCaand retail buyers, wholesalers, distributors and importers, as well as food manufacturers.