Analysis: Shoprite’s success lies in close ties with suppliers
Every year, in the third or fourth quarter, Shoprite has a tradition of honouring its top suppliers, which have clung to the tailcoats of the retailer as it invaded several lucrative African markets on its way to dominating food retailing on the continent.
In the past, blue chip suppliers such as food manufacturer Tiger Brands, Procter & Gamble, Unilever, Cadbury, Kraft Foods and many others have reaped rich rewards from their close commercial association with Shoprite as Africa’s largest and most successful retailer opened more supermarkets across the continent.
Gigantic beer merger no threat to African farmers
The world’s largest brewer, Anheuser-Busch (AB) InBev, which is proposing to merge with SAB Miller in a $110 billion deal, has re-assured 50 000 small-scale African farmers providing crops to SAB Miller that they will not see their supplies slashed due to a cost-cutting exercise that may ensue.
SAB Miller, the world’s second largest beer producer, sources about 130 000 tons of barley, cassava, maize and sorghum, from African smallholder farmers, which are used to brew various types of beer brands that are sold to consumers across the continent.