Stocktake: Partnerships and acquisitions
Partnerships and acquisitions are driving growth and innovation in the retail sector.Tuesday, 06 Apr 2021
Partnerships and acquisitions are driving growth and innovation in the retail sector. This week commercial property developer Growthpoint announced the completion of the world class Cintocare Hospital in Pretoria; and AFGRI Animal Feeds’ completed its acquisition of Martin & Martin dry pet food brands Epol and Vitagen, creating a new pet food brand with designs on Africa.
Growthpoint completes Cintocare Hospital development
A 11,000 sqm specialised surgical hospital development by Growthpoint Properties and Cintocare has opened in Pretoria, Gauteng, to become the first 5-star rated green hospital in Africa; and only the fifth in the world with its specialised surgical mix and clinical business model. Growthpoint has extensive experience in delivering bespoke commercial developments, but developing this unique world-leading specialised healthcare facility was a unique project. The hospital is the first of its kind in many aspects. Africa’s first certified green hospital, Cintocare incorporates numerous sustainable design and management features, earning a 5 Green Star Custom Healthcare design certification from the Green Building Council South Africa (GBCSA). Healthcare facilities with green design have been found to deliver 15% faster recovery rates, a 22% reduction in need for pain medication, an 11% reduction in secondary infections, and an 8.5% reduction in hospital stays. Cintocare is also South Africa’s first hospital to generate its own oxygen on demand using an installed PSA (Pressure Swing Adsorption) plant.
Cintocare Hospital in the green Menlyn Main precinct is a tailor-made, high-performance clinical centre of excellence focused exclusively on head, neck, spinal and vascular surgery. Construction of the R470m specialist surgical hospital began in July 2018 and, despite the COVID-19 lockdown, was completed on time at the end of 2020. The hospital is the culmination of the close collaboration between its operators, doctors, promoters, developers, owners, and other stakeholders. “Developing a world class hospital is a major undertaking in itself, but doing so during the uncertainty of a pandemic intensified the complexity of the task. Every party involved in the construction rose to the challenge of managing the heightened risks to safely deliver the development of Cintocare, which is changing the future of healthcare properties in South Africa,” says Michiel Gerber, development manager for Growthpoint. Care is woven into every detail of the hospital’s design. For instance, the swooping shading along the building’s impressive glass façade is crafted to evoke spinal vertebra found in the neck, reflecting its inner purpose while also being functional.
Epol and Vitagen pet food brands sold
The Competition Commission has approved AFGRI Animal Feeds’ acquisition of Martin & Martin dry pet food manufacturing facility in Isando, South Africa. The transaction includes two of Martin & Martin’s well-established dry pet food brands: EPOL dry cat and dog food; as well as Vitagen dry dog food. The acquisition was driven by a joint venture between AFGRI Animal Feeds and QSA Holdings (a Queally family holding company based in Europe), establishing AFRIQUE Pet Food, to gain access to an annual extruded pet foods production capacity to cater to the joint needs of the merged business and its future expansion plans within the African market. In an effort to support the local value chain the newly formed company AFRIQUE Pet Food will strive to source the majority of its energy and protein sources locally. The company will also be a Level 3 BEE contributor.
The strategic acquisition of the Isando facility, initially built for Nestlé’s dry pet food manufacturing division, gives AFRIQUE access to a facility equipped with state-of-the-art equipment and technology. The factory infrastructure has an annual extruded pet foods production capacity to cater for the joint needs of the merged business and its future expansion plans within the African market. AFGRI Animal Feeds is a world-class supplier of advanced animal feed products and services, playing a vital role in the food value chain by converting raw materials into balanced feeds for animals. QSA Holdings’ Queally family has over 25 years’ experience in the pet food and snacks sector, with customers including some of the largest retailers across the globe. The acquisition of the facility, as well as the addition of the premium dry pet food brands EPOL and Vitagen to the AFRIQUE Pet Food brand portfolio, is complementary to the animal health and wellness strategy of AFGRI Animal Feeds’ existing brands – JOCK dog food, Grandeur Super Premium dog food and Tailsup dry dog food. It will also manufacture all Martin & Martin dry pet food brands.
Hyde Park Corner cranks up the fun factor
During the April school holidays, Hyde Park Corner and PNA are launching a pop-up Kids Craft Corner for arts and crafts sessions for kids. Tickets are available through Webtickets.
Nederburg on most admired world wine brands
For the fifth time, Nederburg features on the esteemed World’s Most Admired Wine Brands list this year, in 34th position. It’s the highest placed of just two South African wine brands to appear on the list, voted for by an academy of over 200 global industry experts. Known as the definitive list of the world’s best wine brands, it’s compiled annually by UK-based trade publication, Drinks International. Nederburg was included in the list in 2016 (49th position), 2017 (36th position), 2018 (41st position) and again in 2019 (47th position). According to the organisers, to make it into the international line-up of the top 50 wine brands, demands consistent or improving quality; a reflection of region or country of origin; a responsiveness to the needs and tastes of target audiences; excellent marketing and packaging; and a strong appeal to a wide demographic. The Paarl winery’s managing director, Niël Groenewald, says: “Such continued high-level affirmation for Nederburg is a huge boost as we build the brand’s global presence. We’ve already taken the brand to a new level and continue to do so, thanks to continued local and international demand for our wines.”
The brand is currently busy with a significant global update and re-energised approach to communication that’s more accessible, but also more intriguing. It covers a whole range of aspects, from a simplified brand architecture, pack makeover and improvements in wine styling, to new look and feel advertising and promotions, an ongoing line-up of novel and appealing digital, influencer, in-store and on-consumption activations, a renewed focus on e-commerce and customer relationship management (CRM), and a revamped restaurant and tasting facility now called The Manor, situated in Nederburg’s iconic 1800 manor house in Paarl.
This week in numbers
The Anzisha Prize believes entrepreneurs in Africa can create one million jobs for young Africans by 2030. The reality is that Africa has the largest and youngest workforce in the world, but creates few work opportunities on the continent, which is staggering. To make matters worse, young people are the most vulnerable group to being unemployed. Youth unemployment is hindering economic growth for the continent. The Anzisha Prize – alongside others – sees entrepreneurship as key to job growth. Over the past 10 years, they have sought to build an ecosystem that champions youth entrepreneurship, as young people are particularly adept at creating work opportunities for other youth. After a decade of this advocacy, the organisation has released, “Unlocking Africa’s Hidden Job Creators: Lessons from ten years of supporting transitions from education to entrepreneurship in Africa”. It offers a guide on how a coordinated movement of key influencers can change the trajectory of entrepreneurship on the continent for young people and see the creation of on million dignified work opportunities by 2030. Download here.
QUOTE of the week:
“We’re cognisant of the fact that things are not going to return to ‘normal’ – in terms of the eventing and on-premise space – in the near future, which means the need remains to keep innovating,” said Sibusiso Shangase, Head of Marketing for Pernod Ricard South Africa’s global Whiskey, Cognac and Champagne portfolio, on Retailing Africa this week.
*Stocktake is a weekly roundup of current FMCG retailing and brand news, curated and edited by Retailing Africa Publisher & Editor, Louise Burgers. Keep the industry updated and send your announcements and news to: firstname.lastname@example.org.
Louise Burgers is the Publisher and Editor and Co-Founder of RetailingAfrica.com. She has spent over 20 years writing about the FMCG retailing, marketing, media and advertising industry in South Africa and on the African continent. She has specialised in local and Africa consumer trends and is a passionate Afro-optimist who believes it is Africa’s time to rise again and that the Africa Continental Free Trade Agreement (AfCFTA) will be a global gamechanger in the next decade.
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