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. 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. Approximate South African Retail Distribution Universe 2015 ChannelStores Hypermarkets56 Supermarkets1928 Petroleum/ C-Store2162 Other655 Wholesale1205 Total6005 * Estimated South African Modern Market

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%. Shoprite Checkers Shoprite541 Checkers197 Checkers33 Usave333 LiquorShops293

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 hypermarkets being the largest. Pick n Pay PnP Hyper20 PnP Corporate215 PnP Family266 PnP Mini21 PnP Daily1 PnP Express46 PnP Liquor170

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. Spar Superspar313 Spar427 Kwikspar135 Tops Liquor622

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. Massmart Makro20 Dion24 Game134

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. Food Lovers Market 120 Fresh Stop200

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

43. 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 Overview

44. 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 Indian Ocean Islands. Food and beverages are expected to account for US$175 billion of this increase. Sub Saharan Africa

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 HoReCa and 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 HoReCa and 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 HoReCa and 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 HoReCa and retail buyers, wholesalers, distributors and importers, as well as food manufacturers.

51. A real opportunity to become the food, drink and hospitality event for Sub Saharan Africa. Growth from existing pavilions (Germany, Austria, Morocco). New additions – Tea & Coffee Africa, The Drinks Cabinet and Contract Furnishing Africa). Visitor growth (both domestic and African). More international pavilions (Chile, Canada….Ukraine?!). The Future