SA CHEESE INDUSTRY

LANDSCAPE REPORT

COMPILED: JANUARY 2017

REPORT OVERVIEW

For the Global Cheese Industry Section:

What are the current market dynamics of the global Cheese industry?

What are the global Cheese industry trends, drivers, and restraints?

For the South African Cheese Industry Section:

What are the current market dynamics of the SA Cheese industry?

Who are the key manufacturing players in the SA Cheese industry?

Who are the key cheese importers in the SA Cheese industry?

For the South African Retail and Pricing Analysis Section:

Who are the key retail players in the SA Cheese industry?

What are the prices of popular Cheese brands across South African retail outlets?

In terms of South African Consumer Insights and Trends:

What are the volumes for Cheese consumption (2011-2015)?

What are the statistics regarding the most popular types of Cheese purchased in 2015?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

The South African Cheese Industry Landscape Report (110 pages) provides a dynamic synthesis of

industry research, examining the local and global Cheese industry from a uniquely holistic perspective, with

detailed insights into the entire value chain – from manufacturing to retail, pricing and consumption.

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SCREENSHOTS FROM REPORT

110 page report filled with detailed charts, graphs, tables and insights

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4Source: World Knowing ; Statista Image Source: Pixabay; Freepik

SAMPLE FROM REPORTKEY GLOBAL MARKETS

Approximately 20-22 million metric

tonnes of cheese is produced in total

around the world (annually). The United

States produces 5.2 million tonnes of

cheese annually with Germany second

at only 2 million tonnes.

1. USA

Due to the increase of health consciousness,

the US market is shifting in preference for

unprocessed cheese. Additionally, the growth

in the fast food market is impacting positively

on the growth of the cheese market.

The US currently produces about 26% of the

global cheese market.

2. Germany

In 2011, the production value of Germany’s

cheese market was Euro 4,4 billion which

increased to Euro 4,9 billion by 2014.

Cheese made up 24.4% of the German chilled

and fresh food sales as of 28 June 2015.

Germany is the largest producer of milk in

Europe and one of the highest exporting

countries.

3,329

3,405.2

3,526.4

3,875.7

4,268.93,896.4

4,270.94,448.9

4,459.3

4,837.6

4,973.5

0

1,000

2,000

3,000

4,000

5,000

6,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

PRODUCTION VALUE OF CHEESE IN GERMANY 2004-2014 (Euro million)

5.2

2 1.91.1

0.7 0.7 0.6 0.6 0.6 0.4

0

1

2

3

4

5

6

TOP 10 LARGEST CHEESE PRODUCER COUNTRIES (Million metric tonnes)

SAMPLE FROM REPORT SOUTH AFRICAN CHEESE INDUSTRY TRENDS

5Source: Euromonitor; Bdlive; S-ge ; Danone Image Source: Pixabay: Freepik

Low fat dairy products in South Africa will

be classified as medium fat products in

line with international standards as of

March 2016.

Dairy products will now be categorised as high

fat, full fat, medium fat, low fat and fat free (or

skimmed).

Parmalat has confirmed that their low fat

products will be relabelled as medium fat

products in the future.

Consumers are also more drawn to

products which offer something extra.

This could include products offering extras like

indulgence, convenience or economical

advantages and eye-catching packaging.

Market research has shown that consumers

expect products that are ready-to-eat, safe,

high in nutritional value, natural, and good

value-for-money.

Product Differentiation

Due to the increase of private labels and

the competitive landscape, manufacturers

are having to distinguish their products and

services.

Differentiating products as healthy, natural

and organic are some of the most popular

strategies.

SAMPLE FROM REPORT SA CHEESE MANUFACTURERS: CLOVER

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Founded in 1898, Clover Lichtenburg,

situated in Lichtenburg in the North West

Province, has a cheese processing and

packaging facility.

Clover delivers to approximately 14 913 delivery

points across South Africa.

The Group was converted from a co-operative

society into a public company in 2003.

In 2016, Clover reported that their headline

earnings per share increased by 8.9% to 188,9

cent.

During 2016, Clover’s revenue increased by 6%

to R9,8 billion and their operating profit was up

by 10,9% to R564.5 million.

Clover Feta cheese is the second largest brand

in the market and is competing for the number

one position.

CLOVER PRODUCT RANGE:

Berg processed cheese

Clover Feta

Clover Portions in Cheddar and Gouda

Clover Pre-packed Cheddar, Gouda,

Mature Cheddar and Tussers

Clover Slices in Cheddar and Gouda

Clover White Cheddar

Processed cheese slices in biltong,

Cheddar, Gouda and sweet milk

Elite pre-packed Cheddar, Gouda

and Mature Cheddar

Source: Clover; Clover Annual report 2016 Image Source: Clover

Product Categories

Clover’s Percentage

Market Share as at

30 June 2016

Feta Cheese 28.0%

Pre-packed cheese 23.8%

Processed cheese slices 15.4%

Source: Moneyweb, Pick n Pay Image Source: Pick n Pay

SAMPLE FROM REPORT SA RETAIL: PICK N PAY

Pick n Pay has delivered a turnover of

R37.4bn for the 26 weeks ending 28

August 2016 (a growth of 7.2% compared

to the same period last year).

Despite a challenging economic environment

in South Africa and great pressure on

consumers, the gross profit margin for the

Group is up by 0.2%.

700 new Private Label products were

launched in addition to the 900 already

available.

Super Animals (a Pick n Pay promotion)

registered 3.3 million active Smart Shopper

collectors. In addition, the app was one of the

Top 10 most downloaded apps in the Apple

and Android stores.

Smart Shopper was awarded SA’s favourite

loyalty programme for the 4th consecutive

year.

PnP online grew by 34%.

Boxer delivered an improved gross profit

margin.

Pick n Pay’s key strategic objectives 2017:

Focus on operating efficiency

Sales growth

Margin improvement

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32.1

34.937.4

0

5

10

15

20

25

30

35

40

FY15 H1 FY16 H1 FY17 H1

GROUP TURNOVER (R Billion)

Year 1 Packet/tub 2 Packets/tubs 3+ Packets/tubs Total

2011 4,425,000 3,632,000 3,417,000 11,474,000

2012 4,796,000 3,412,000 3,004,000 11,211,000

2013 5,092,000 3,663,000 3,092,000 11,847,000

2014 5,152,000 3,548,000 2,672,000 11,372,000

2015 5,309,000 3,433,000 2,681,000 11,423,000

Between 2011 and 2015, the volume trends among consumers who had personally purchased cheese has decreased from

30% purchasing 3+ packets/tubs in the past 4 weeks in 2011 to 23% in 2015.

In 2015, 46% (5.3 million) of cheese consumers had personally bought 1 packet/tub in the past 4 weeks and 30% (3.4

million) bought 2 packets/tubs.

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39% 43% 43% 45% 46%

32% 30% 31% 31% 30%

30% 27% 26% 23% 23%

0%10%20%30%40%50%60%70%80%90%

100%

2011 2012 2013 2014 2015

HOW MANY PACKETS/TUBS OF CHEESE HAVE YOU PERSONALLY BOUGHT DURING THE PAST 4 WEEKS (2011-2015)

1 Packet/tub 2 Packets/tubs 3+ Packets/tubs

Source: AMPS 2011B-2015B (Adult population 16+ years)

Sample Size: 34 038 (2011); 34 067 (2012); 36 449 (2013); 36 932 (2014); 37 452 (2015)

Based on weighted numbers

SAMPLE FROM REPORTCHEESE VOLUME TRENDS (PAST 4 WEEKS)

TABLE OF CONTENTS

1. Executive Summary (4 pages):

1.1 Global Industry Snapshot 2016

1.2 South African Industry Snapshot 2016

1.3 Industry Drivers and Restraints

1.4 SA Dashboard: Purchasing Stats

2. Global Cheese Industry Overview (7 pages):

2.1 Global Cheese Industry Overview: GLOBAL CHEESE MARKET VALUE IN 2015 AND 2021; REVENUE OF DAIRY PRODUCT AND CHEESE MANUFACTURING IN

INDIA FROM 2008 TO 2018 (Graphs)

2.2 Key Global Cheese Markets: USA, Germany, France, Italy: TOP 10 CHEESE PRODUCING COUNTRIES; PRODUCTION VALUE OF CHEESE IN

GERMANY 2004-2014; NUMBER OF PEOPLE USING CHEESE IN FRANCE IN 2015 (SEVERAL TIMES A WEEK); VOLUME OF FRESH CHEESE PRODUCED IN ITALY 2014,

BY CHEESE TYPE (Graphs)

2.3 Global Industry Trends

2.4 Global Industry Drivers

2.5 Global Industry Challenges

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TABLE OF CONTENTS

3. South African Cheese Industry Overview (28 pages):

3.1 South African Cheese Industry Overview (14 pages)

3.1.1 South African Cheese Industry Overview: ANNUAL AND MONTHLY RAW MILK PURCHASES IN SA (2012-SEP 2015); TOTAL IMPORTS AND EXPORTS OF

CHEESE PER TARIFF CLASS (2014-2016*); COMPOSITION OF THE SA CONCENTRATED PRODUCTS MARKET ON A MASS BASIS FOR 2011 (Graphs)

3.1.2 Market Structure and Dynamics: MARKET BREAKDOWN ACCORDING TO CHEESE TYPE: 2013 (Graph)

3.1.3 SA Cheese Industry Production & Consumption: MARKET BREAKDOWN ACCORDING TO CONCENTRATED MILK PRODUCTS: 2013; MILK PRODUCTION

BY PROVINCE: 2013 (Graphs)

3.1.4 SA Cheese Industry Distribution: CHANNEL DISTRIBUTION IN SOUTH AFRICA: 2013; DISTRIBUTION BY PROVINCE: 2013 (Graphs)

3.1.5 Key Industry Trends

3.1.6 Key Industry Drivers

3.1.7 Key Industry Challenges

3.1.8 Promotion Strategies

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3. South African Cheese Industry (43 pages):

3.1 South African Cheese Industry Overview (15 pages)

3.1.1 South African Cheese Industry Overview: TOTAL IMPORTS AND EXPORTS OF CHEESE PER TARIFF CLASS IN TONNES (2014-2016*); COMPOSITION OF

THE SA CONCENTRATED PRODUCTS MARKET ON A MASS BASIS (Graphs)

3.1.2 Market Structure and Dynamics: MARKET SHARE ACCORDING TO CHEESE TYPE (Graph)

3.1.3 South African Milk Industry Production: 2013-2016 Raw Milk Purchases: MONTHLY RAW MILK PURCHASE TREND (JANUARY 2013 TO

NOVEMBER 2016) (Graph)

3.1.4 International Price Trends: Dairy and Cheese: INTERNATIONAL DAIRY PRODUCT PRICES (JANUARY 2007 TO DECEMBER 2016) (Graph)

3.1.5 South African Cheese Industry Production & Consumption: MARKET BREAKDOWN ACCORDING TO CONCENTRATED MILK PRODUCTS; MILK

PRODUCTION BY PROVINCE (Graphs)

3.1.6 South African Cheese Industry Distribution: CHANNEL DISTRIBUTION IN SOUTH AFRICA; DISTRIBUTION BY PROVINCE (Graphs)

3.1.7 South African Cheese Industry Trends

3.1.8 South African Cheese Industry Drivers

3.1.9 South African Cheese Industry Challenges

3.1.10 Promotion Strategies

TABLE OF CONTENTS

3. South African Cheese Industry Overview (28 pages):

3.1 South African Cheese Industry Overview (14 pages)

3.1.1 South African Cheese Industry Overview: ANNUAL AND MONTHLY RAW MILK PURCHASES IN SA (2012-SEP 2015); TOTAL IMPORTS AND EXPORTS OF

CHEESE PER TARIFF CLASS (2014-2016*); COMPOSITION OF THE SA CONCENTRATED PRODUCTS MARKET ON A MASS BASIS FOR 2011 (Graphs)

3.1.2 Market Structure and Dynamics: MARKET BREAKDOWN ACCORDING TO CHEESE TYPE: 2013 (Graph)

3.1.3 SA Cheese Industry Production & Consumption: MARKET BREAKDOWN ACCORDING TO CONCENTRATED MILK PRODUCTS: 2013; MILK PRODUCTION

BY PROVINCE: 2013 (Graphs)

3.1.4 SA Cheese Industry Distribution: CHANNEL DISTRIBUTION IN SOUTH AFRICA: 2013; DISTRIBUTION BY PROVINCE: 2013 (Graphs)

3.1.5 Key Industry Trends

3.1.6 Key Industry Drivers

3.1.7 Key Industry Challenges

3.1.8 Promotion Strategies

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3.2 South African Cheese Manufacturing Overview (17 pages):

3.2.1 SA Cheese Manufacturers: BM Food Manufacturers

3.2.2 SA Cheese Manufacturers: Cape Cheese Products

3.2.3 SA Cheese Manufacturers: Clover

3.2.4 SA Cheese Manufacturers: DairyBelle

3.2.5 SA Cheese Manufacturers: Fairview

3.2.6 SA Cheese Manufacturers: Healey’s

3.2.7 SA Cheese Manufacturers: Indezi

3.2.8 SA Cheese Manufacturers: Klein River

3.2.9 SA Cheese Manufacturers: Ladismith Cheese

3.2.10 SA Cheese Manufacturers: La Mont

3.2.11 SA Cheese Manufacturers: Lancewood

3.2.12 SA Cheese Manufacturers: La Petite France

3.2.13 SA Cheese Manufacturers: Morning Milk

3.2.14 SA Cheese Manufacturers: Parmalat

3.2.15 SA Cheese Manufacturers: Zandam

3.2.16 SA Cheese Manufacturers: Karoo & Langbaken

3.2.17 SA Cheese Manufacturers: La Montanara & Roulou

TABLE OF CONTENTS

3. South African Cheese Industry Overview (28 pages):

3.1 South African Cheese Industry Overview (14 pages)

3.1.1 South African Cheese Industry Overview: ANNUAL AND MONTHLY RAW MILK PURCHASES IN SA (2012-SEP 2015); TOTAL IMPORTS AND EXPORTS OF

CHEESE PER TARIFF CLASS (2014-2016*); COMPOSITION OF THE SA CONCENTRATED PRODUCTS MARKET ON A MASS BASIS FOR 2011 (Graphs)

3.1.2 Market Structure and Dynamics: MARKET BREAKDOWN ACCORDING TO CHEESE TYPE: 2013 (Graph)

3.1.3 SA Cheese Industry Production & Consumption: MARKET BREAKDOWN ACCORDING TO CONCENTRATED MILK PRODUCTS: 2013; MILK PRODUCTION

BY PROVINCE: 2013 (Graphs)

3.1.4 SA Cheese Industry Distribution: CHANNEL DISTRIBUTION IN SOUTH AFRICA: 2013; DISTRIBUTION BY PROVINCE: 2013 (Graphs)

3.1.5 Key Industry Trends

3.1.6 Key Industry Drivers

3.1.7 Key Industry Challenges

3.1.8 Promotion Strategies

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3.3 South African Cheese Importing Overview (11 pages):

3.3.1 SA Cheese Importers: Alfalfa’s

3.3.2 SA Cheese Importers: Alpenhain

3.3.3 SA Cheese Importers: Arla Foods

3.3.4 SA Cheese Importers: Bel Group

3.3.5 SA Cheese Importers: Dutch Farms

3.3.6 SA Cheese Importers: Emborg

3.3.7 SA Cheese Importers: Fayrefield Foods

3.3.8 SA Cheese Importers: M&L Distributors

3.3.9 SA Cheese Importers: Savencia Fromage & Dairy

3.3.10 SA Cheese Importers: Kerrygold & Wyke

3.3.11 SA Cheese Importers: Westland & Woerle

TABLE OF CONTENTS

3. South African Cheese Industry Overview (28 pages):

3.1 South African Cheese Industry Overview (14 pages)

3.1.1 South African Cheese Industry Overview: ANNUAL AND MONTHLY RAW MILK PURCHASES IN SA (2012-SEP 2015); TOTAL IMPORTS AND EXPORTS OF

CHEESE PER TARIFF CLASS (2014-2016*); COMPOSITION OF THE SA CONCENTRATED PRODUCTS MARKET ON A MASS BASIS FOR 2011 (Graphs)

3.1.2 Market Structure and Dynamics: MARKET BREAKDOWN ACCORDING TO CHEESE TYPE: 2013 (Graph)

3.1.3 SA Cheese Industry Production & Consumption: MARKET BREAKDOWN ACCORDING TO CONCENTRATED MILK PRODUCTS: 2013; MILK PRODUCTION

BY PROVINCE: 2013 (Graphs)

3.1.4 SA Cheese Industry Distribution: CHANNEL DISTRIBUTION IN SOUTH AFRICA: 2013; DISTRIBUTION BY PROVINCE: 2013 (Graphs)

3.1.5 Key Industry Trends

3.1.6 Key Industry Drivers

3.1.7 Key Industry Challenges

3.1.8 Promotion Strategies

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4. South African Cheese Industry Retail Analysis (30 pages):

4.1 SA Retail Overview (13 pages)

4.1.1 SA Retail Overview

4.1.2 SA Retail: Checkers

4.1.3 SA Retail: Massmart

4.1.4 SA Retail: Pick n Pay: PICK N PAY GROUP TURNOVER (RB) (Graph)

4.1.5 SA Retail: Shoprite: SALES GROWTH PERCENTAGE FOR YEAR (Graph)

4.1.6 SA Retail: Spar

4.1.7 SA Retail: Woolworths: OPERATING PROFIT BY SEGMENT (RM) (2014-2016), WOOLWORTHS VS MARKET GROWTH (3MMA) (Graphs)

4.1.8 SA Retail: Engen Quick Shop, Shell Select

4.1.9 SA Retail: BP Wild Bean & Pick n Pay Express, Caltex FreshStop

TABLE OF CONTENTS

4.2 South African Cheese Independent Retailer Analysis (4 pages)

4.2.1 SA Independent Retailers: Dalewood Fromage

4.2.2 SA Independent Retailers: Culture Club Cheese

4.2.3 SA Independent Retailers: La Cotte Inn

4.2.4 SA Independent Retailers: Get Stuffed

4.3 Cheese Pricing Analysis (13 pages)

4.3.1 Cheddar and Gouda Cheese (Unprocessed): Bonnita, Clover, Chavignol, Colliers, Continental Collection, Crystal Valley,

Dairybelle, Elite, Emborg, Happy Cow, Healey’s, Karoo, Kerrygold, Ladismith, Lancewood, Old Amsterdam, Parmalat,

Simonsberg, Violife, Wyke.

4.3.2 Cheddar, Gouda and Sweet Milk Cheese (Processed): Clover, DairyBelle, Lancewood, Melrose, Parmalat.

4.3.3 Specialty Cheese : Babybell, Bonnita, Castello, Caprice des Dieux, Cheezly, Clover, Continental Collection, DairyBelle, Emborg,

Fairview, Ile de France, Karoo, Klein River, Indezi, La Montanara, La petite France, Lancewood, La Mont, Mediterranean, Meze,

Parmalat, President, Prestige, Saint Andre, Simonsberg, Zandam.

4.3.4 Cream and Cottage Cheese: Bel, Boursin, Clover, Crystal Valley, Dutch Farm, La Mont, Parmalat, President, Lancewood,

Simonsberg,

4.3.5 Feta Cheese: Crystal Valley, DairyBelle, Darling, Fairview, Karoo, La Mont, Mediterranean, Meze, President, Roulou,

Simonsberg.

Comparative Pricing at Retail Outlets: Checkers, Pick ‘n Pay, Shoprite, Spar, Woolworths Food

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TABLE OF CONTENTS

5. South African Consumer Trends (6 pages):

5.1 AMPS Survey Methodology & Sample Design

5.2 AMPS Survey Questions Asked

5.3 Cheese Purchasing Trends (Past 4 weeks): 2011-2015 (Graph)

5.4 Cheese Purchasing Trends (Past 4 weeks): 2011-2015 (Table)

5.5 Cheese Volume Trends (Past 4 weeks): 2011-2015 (Graph & Table)

5.6 Most Popular Cheese Types: 2015 (Graph & Table)

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