SOUTH AFRICAN RTD/ICED TEA INDUSTRY LANDSCAPE REPORT

COMPILED: APRIL 2019

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▪ From strategic overviews of your business’s competitive

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▪ Competitor pricing research

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Our Food and Beverages Industry Landscape reports have been purchased by global and South African companies:

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REPORT OVERVIEW

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The South African RTD Tea Industry Landscape Report (88 pages) provides a dynamic synthesis of industry research, examining the

local and global RTD Tea Industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from

manufacturing to retailing, market size trends, industry trends, industry drivers and challenges, competitor and pricing analysis.

For the Global RTD Tea Industry Section:

What are the current market dynamics of the Global RTD Tea Industry?

What are the key markets within the Global RTD Tea Industry?

What are the Global RTD Tea Industry trends, drivers, and challenges?

For the South African RTD Tea Industry Section:

What are the current market dynamics (imports, exports, market size, market value, market volumes: 2013-2018 Actual, 2019-

2023 Forecasts, distribution channels) of the South African RTD Tea Industry?

What are the South African RTD Tea Industry trends, drivers, and challenges?

Who are the key manufacturing players in the South African RTD Tea Industry?

For the South African Retail and Pricing Analysis Section:

Who are the key retail players (supermarkets and convenience stores) in the South African RTD Tea Industry?

What are the prices of the most frequently purchased RTD Tea brands across South African retail outlets?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

SCREENSHOTS FROM REPORT

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

The graph below illustrates the Top 6 estimated global

exporting countries of HS210120* products, of which

RTD Tea forms a part, in 2018.

❑ Netherlands remained the top global exporter of HS210120*

products in 2018, estimated to have exported approximately

US$240.0 million. The United States and China were the second

and third largest exporters of HS210120* products, with estimates

of US$174.1 million and US$129.3 million respectively, as

illustrated in the graph below.

240.0

174.1

129.3

82.1 81.5

56.3

0

50

100

150

200

250

300

Netherlands United States China Ireland Germany Spain

TOP 6 HS 210120* EXPORTING COUNTRIES: 2018** (IN US$ MILLION)1,252

1,075 1,114 1,1251,224

0

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017 2018**

GLOBAL HS210120* EXPORT VALUE: 2014 - 2018 (IN US$ MILLION)

As illustrated in the graph below, total global exports for

the category HS210120*, of which RTD Tea makes up a

part, was valued at an estimated US$1,224 million in

2018, an increase compared to the previous year’s

approximate value of US$1,125 million.

❑ Total global exports for HS210120* fell between 2014 and 2015,

however this category rose again 2016.

*HS Code 210120: Extracts, essences and concentrates, of tea or maté, and

preparations with a basis of these extracts, essences, or concentrates, or with a basis

of tea or mate.

**Estimated value

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Source: TradeMap1; TradeMap2 Image Source: PDP; EB2; BRT; USFS; Today; Vexels; TreeHugger; LF&B

SAMPLE FROM REPORT: GLOBAL INDUSTRY TRADE: EXPORTS

SAMPLE FROM REPORT: SA INDUSTRY TRENDS

Exotic Flavours Continue to Attract Consumers

❑ As a continuing trend, exotic blends and adaptogenic ingredients

will continue to be incorporated into RTD Tea products during

2019.

❑ Laager, a South African rooibos brand, recently released two new

flavoured tea products, namely mint flavoured rooibos and

chamomile tea, as well as cranberry and wild cherry flavoured

rooibos. The teas could also be served as an iced tea.

❑ Syrups Etc, a South African company which specialises in

concentrates for drinks, toppings and ice creams, offers a range

of exotic ice tea syrups. Their range includes flavours such as

coconut and pineapple, kiwi, coconut and mixed berry,

pomegranate, and cinnamon and apple, amongst others.

❑ Exotic and unique flavours will continue to remain relevant in the

RTD Tea industry. It will also play a key role in ensuring that

consumers remain interested in the category in future.

Popularity of Rooibos (Flavours) Among South Africans

❑ Healthier lifestyles is a continuing trend among South Africans,

and as a result, individuals are opting for natural or plant-based

products. Rooibos, which is native to South Africa, is an

increasingly popular choice among individuals as it does not

contain any caffeine and is believed to offer various health

benefits.

❑ Rooibos, which is rich in antioxidants, electrolytes, and essential

minerals, continues to be an important trend in the RTD Tea

market.

❑ Interestingly, the South African Rooibos Council (SARC)

interviewed more than 1,000 South Africans during September

2018. 44% of the respondents indicated that they prefer a

standard cup of Rooibos tea, whereas the other 56% suggested

that they prefer Rooibos cappuccinos, espressos, flavoured, chai,

and iced tea.

❑ Rooibos is expected to remain a relevant trend in the RTD Tea

market, especially as consumers’ awareness and knowledge on

the health benefits associated with this type of tea continues to

increase.

Source: CStoreDecisions; SARooibos; iol; iol2; HonestVersion; DrinkStuffSA; BizComm; Syrups Image Source: Rooibos; Syrups

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1,321

705657 633

64 56

0

200

400

600

800

1,000

1,200

1,400

Non-AlcoholicBeverages

ConcentratedProducts

Value-AddedDairy Fluids

FermentedProducts and

Desserts

Olive Oil andSoya

Ingredients

CLOVER’S REVENUE FROM SALE OF PRODUCTS BY CATEGORY FOR THE SIX MONTHS ENDED 31

DECEMBER 2018 (IN ZAR MILLION)

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According to Clover SA’s Unaudited Interim Condensed

Consolidated Results and Cash Dividend Declaration for

the six months ended 31 December 2018, revenue

increased by 4.1% from approximately R4.2 billion in

2017 to approximately R4.4 billion in 2018, as illustrated

in the adjacent table.

❑ The increase in revenue is attributable to a 5.6% increase in

volume and 3.1% increase in prices. However, this was slightly

offset by sales charges of R135 million due to the adoption of

IFRS 15.

❑ Sales of products increased by 4.6% from approximately R3.3

billion in 2017 to approximately R3.4 billion in 2018.

❑ Clover’s products are categorised into Non-Alcoholic Beverages,

Concentrated Products, Value-Added Dairy Fluids, Fermented

Products and Desserts, Olive Oil and Soya, and Ingredients.

❑ Revenue from Non-Alcoholic Beverages increased from

approximately R1.2 billion in 2017 to approximately R1.3 billion in

2018, with the latter’s revenue being illustrated in the adjacent

graph.

❑ Of particular interest, ice tea's market share as a percentage of

the Clover Group's product portfolio increased slightly from 12.7%

in 2017 to 13.0% in 2018.

Source: Clover Unaudited Interim Condensed Consolidated Results 2018 Image Source: MzansiStyleCuisine; OogaZone; Freepik; iStock; FotoSearch; VS; VS2

Key results from the Interim Condensed Report

(in ZAR Thousand)Unaudited six months ended

31 December 2018 31 December 2017

Revenue R4,386,254 R4,214,249

Cost of Sales (R2,740,421) (R2,683,786)

Gross Profit R1,645,833 R1,530,463

Operating Profit R343,460 R370,363

Profit for the Period R232,456 R233,208

SAMPLE FROM REPORT: SA MANUFACTURER: CLOVER FINANCIAL PERFORMANCE OVERVIEW

Source: SPAR Company; SPAR Abridged Integrated Annual Report 2018 Image Source: 702; SPAR2; Clipart

SPAR Stores:

2019: 1,571 SA Stores

Established in the 1963s, SPAR was made up of a group

of eight wholesalers and 500 small retailers. SPAR has

become one of the leading distributions and warehouse

Food and Drug Retailers in South Africa that is listed on

the JSE.

❑ Based on the SPAR Group’s Abridged Integrated Annual Report

for the year ended 30 September 2018, revenue increased by

6.0% from approximately R97.2 billion in 2017 to approximately

R103.0 billion in 2018.

❑ The SPAR Group’s headline earnings per share for the SPAR

Group increased by 1.4% from 952.8 cents in 2017 to 965.7 cents

per share in 2018.

❑ The group’s gross profit increased from approximately R10.2

billion in 2017 to approximately R10.8 billion in 2018. The SPAR

Group’s turnover increased by 5.9%, from approximately R95.4

billion in 2017 to approximately R101.0 billion in 2018.

❑ SPAR’s total revenue by geographical segments is illustrated by

the adjacent graph. Southern Africa contributed approximately

R69 billion whereas Ireland contributed approximately R23 billion.

❑ Their RTD Tea offering includes brands such as BOS Ice Tea,

Fuze Ice Tea, Lipton, and Manhattan Ice Tea.

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69.4

23.0

10.6

0

10

20

30

40

50

60

70

Southern Africa Ireland Switzerland

SPAR REVENUE BY GEOGRAPHICAL SEGMENTS FOR YEAR ENDED 30 SEPTEMBER 2018 (IN ZAR BILLION)

SAMPLE FROM REPORT: SA RTD TEA RETAILER: SPAR OVERVIEW

This pricing analysis was conducted at retail stores and supermarkets during w/c 1 April 2019.

BRAND AND SIZE

BOS Ice Tea

330ml R12.99 N/A N/A N/A R13.99 N/A N/A R13.49

3 litre R59.99 N/A N/A R51.45 R61.49 N/A R59.99 N/A

Fuze Tea

330ml R10.99 N/A N/A N/A R10.99 N/A R10.00 N/A

1.5 litre N/A R25.99 R24.99 N/A R24.49 N/A N/A N/A

Lipton Green

Ice Tea

500ml R13.99 N/A N/A N/A R11.99 N/A R14.99 N/A

1.5 litreR18.99

(Special)R24.99 N/A R19.95

R17.99

(Special)R21.99

R18.99

(Special)N/A

Lipton Ice

Tea

330ml R10.99 N/A N/A N/A R10.99 N/A R9.99 R10.99

500ml R13.99 N/A R12.99 N/A R11.99 R13.49 R12.99 N/A

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SAMPLE FROM REPORT: RTD TEA PRICING ANALYSIS

1. Executive Summary (3 pages):

1.1 Global Industry Snapshot

1.2 South African Industry Snapshot

1.3 Industry Drivers & Restraints

2. Global RTD Tea Industry (15 pages):

2.1 Global RTD Tea Industry Overview (15 pages)

2.1.1 Global Industry Overview

2.1.2 Global Market Environment

2.1.3 Global Industry Trade: GLOBAL HS210120* IMPORT VALUE: 2014-2018 (IN US$ MILLION); TOP 6 HS 210120* IMPORTING COUNTRIES: 2018** (IN US$ MILLION); GLOBAL

HS210120* EXPORT VALUE: 2014-2018 (IN US$ MILLION); TOP 6 HS 210120* EXPORTING COUNTRIES: 2018** (IN US$ MILLION) (Graphs)

2.1.4 Global Key Markets: Regional Overview: RTD TEA RETAIL SALES, BY REGION: 2018 (IN MILLION LITRES) (Graph)

2.1.5 Global Key Markets: Asia-Pacific

2.1.6 Global Key Markets: Europe

2.1.7 Global Key Markets: North America

2.1.8 Global Industry Trends

2.1.9 Global Industry Drivers

2.1.10 Global Industry Challenges

TABLE OF CONTENTS

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3. South African RTD Tea Industry (38 pages):

3.1 South African RTD Tea Industry Overview (21 pages)

3.1.1 South African Industry Overview

3.1.2 South African Market Environment

3.1.3 South African RTD Tea Trade: SA HS2102000* IMPORT VALUE: 2014-2018 (IN ZAR MILLION); SA HS2102000* EXPORT VALUE: 2014-2018 (IN ZAR MILLION) (Graphs)

3.1.4 South African Industry Market: South African RTD Tea Market Definitions

3.1.5 South African Industry Market: South African RTD Tea Distribution Channel Definitions

3.1.6 South African Industry Market Size: RTD Tea Market (2013-2018): VALUE OF SA RTD TEA MARKET: 2013-2018 (IN ZAR MILLION); SA RTD TEA MARKET CAGR AND

TOTAL GROWTH (IN PERCENTAGE) (Graph and Table)

3.1.7 South African Industry Market Size: RTD Tea Market (2013-2018: By Category): VALUE OF SA RTD TEA MARKET BY CATEGORY: 2013-2018 (IN ZAR MILLION)

(Graph)

TABLE OF CONTENTS

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3. South African RTD Tea Industry Continued (38 pages):

3.1 South African RTD Tea Industry Overview (21 pages)

3.1.8 South African Industry Market Size: RTD Tea Market (Forecast: 2019*-2023*): VALUE OF SA RTD TEA MARKET: 2018 & 2023* (IN ZAR MILLION); SA RTD TEA

MARKET VALUE FORECAST (IN ZAR MILLION) (Graph and Table)

3.1.9 South African Industry Market Size: RTD Tea Market Volumes (2013-2023*): RETAIL VOLUME OF SOUTH AFRICAN RTD TEA MARKET: 2013-2023* (Table)

3.1.10 South African Market Environment: Top RTD Tea Companies: TOP RTD TEA COMPANIES IN SOUTH AFRICA: 2018 (REVENUE SHARE IN ZAR MILLION); TOP RTD TEA

COMPANIES: 2013 vs 2018) (Graph and Table)

3.1.11 South African Market Environment: Top RTD Tea Brands: TOP RTD TEA BRANDS IN SOUTH AFRICA: 2018 (REVENUE SHARE IN ZAR MILLION); TOP RTD TEA

BRANDS: 2013 VS 2018 (Graph and Table)

3.1.12 South African Market Environment: RTD Tea Distribution Channels: CHANNEL DISTRIBUTION FOR RTD TEA PRODUCTS: 2018 (IN PERCENTAGES); CHANNEL

DISTRIBUTION (2013 AND 2018) BY OUTLET TYPE (Graph and Table)

3.1.13 South African Market Trends

3.1.14 South African Market Drivers

3.1.15 South African Market Challenges: RTD TEA MARKET'S BRANDS AND COMPANIES BREAKDOWN: 2018 (IN PERCENTAGE)

TABLE OF CONTENTS

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3. South African RTD Tea Industry Continued (38 pages):

3.2 South African RTD Tea Manufacturing Overview (17 pages)

3.2.1 Clover SA: Overview

3.2.2 Clover SA: Financial Performance: KEY RESULTS FROM THE INTERIM CONDENSED REPORT (IN ZAR THOUSAND); CLOVER’S REVENUE FROM SALE OF PRODUCTS BY

CATEGORY FOR THE SIX MONTHS ENDED 31 DECEMBER 2018 (IN ZAR MILLION) (Table and Graph)

3.2.3 Clover SA: RTD Tea Brands/Products

3.2.4 Coca-Cola: Overview

3.2.5 Coca-Cola: Financial Performance: KEY RESULTS FROM THE FOURTH QUARTER AND FULL YEAR REPORT (IN US$ MILLION); COCA-COLA NET OPERATING REVENUE

FOR THE YEAR ENDED 31 DECEMBER 2018 (IN US$ MILLION) (Table and Graph)

3.2.6 Coca-Cola: RTD Tea Brands/Products

3.2.7 Pioneer Foods: Overview

3.2.8 Pioneer Foods: Financial Performance: KEY RESULTS FROM THE ANNUAL FINANCIAL STATEMENT (IN ZAR MILLION); REVENUE FOR PIONEER FOODS BY DIVISION

FOR THE YEAR ENDED 30 SEPTEMBER 2018 (IN ZAR BILLION) (Table and Graph)

3.2.9 Pioneer Foods: RTD Tea Brands/Products

3.2.10 Tiger Brands: Overview and RTD Tea Brands/Products

3.2.11 Tiger Brands: Financial Performance: KEY RESULTS FROM THE INTEGRATED ANNUAL REPORT (IN ZAR MILLION); REVENUE CONTRIBUTED BY TIGER BRANDS’

DOMESTIC OPERATIONS DIVISIONS FOR THE YEAR ENDED 30 SEPTEMBER 2018 (IN ZAR BILLION) (Table and Graph)

TABLE OF CONTENTS

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3. South African RTD Tea Industry Continued (38 pages):

3.2 South African RTD Tea Manufacturing Overview (17 pages)

3.2.12 Sir Fruit: Overview and RTD Tea Brands/Products

3.2.13 Rhodes Food Group: Overview

3.2.14 Rhodes Food Group: Financial Performance: KEY RESULTS FROM THE INTEGRATED ANNUAL REPORT (IN ZAR THOUSAND); REVENUE CONTRIBUTED BY RHODES

FOOD GROUP’S SEGMENTS FOR THE YEAR ENDED SEPTEMBER 2018 (IN ZAR MILLION) (Table and Graph)

3.2.15 Rhodes Food Group: RTD Tea Brands/Products

3.2.16 South African RTD Tea Manufacturers and Distributers: Other

TABLE OF CONTENTS

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4. South African RTD Tea Retail Analysis (17 pages):

4.1 South African Supermarket Overview (8 pages)

4.1.1 South African Retail Overview

4.1.2 Checkers: Overview

4.1.3 Food Lover’s Market: Overview

4.1.4 Massmart: Overview: MASSMART’S DIVISION’S SALES FOR THE YEAR ENDED 31 DECEMBER 2018 (IN ZAR BILLION) (Graph)

4.1.5 Pick n Pay: Overview: PICK N PAY REVENUE BY REGION FOR THE 26 WEEKS ENDED 26 AUGUST 2018 (IN ZAR BILLION) (Graph)

4.1.6 Shoprite: Overview: SHOPRITE’S LIKE-FOR-LIKE SALES FOR THE YEAR ENDED 1 JULY 2018 (IN ZAR BILLION) (Graph)

4.1.7 Spar: Overview: SPAR REVENUE BY GEOGRAPHICAL SEGMENTS FOR YEAR ENDED 30 SEPTEMBER 2018 (IN ZAR BILLION) (Graph)

4.1.8 Woolworths: Overview: WOOLWORTHS’ REVENUE BY SEGMENT FOR THE 26 WEEKS ENDED 23 DECEMBER 2018 (IN ZAR MILLION) (Graph)

4.2 South African Convenience Stores Overview (6 pages)

4.2.1 Bonjour, La Boutique and Thrupps (Total): Overview

4.2.2 BP Express and Pick n Pay Express (BP): Overview

4.2.3 FreshStop (Caltex): Overview

4.2.4 QuickShop and Woolworths Foodstop (Engen): Overview

4.2.5 Sasol Delight (Sasol): Overview

4.2.6 Shell Select and Spar Express (Shell): Overview

TABLE OF CONTENTS

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4. South African RTD Tea Retail Analysis Continued (17 pages):

4.3 South African RTD Tea Pricing Analysis (3 pages)

4.3.1 RTD Tea Pricing Analysis: BOS Ice Tea, Fuze Tea, Lipton Green Ice Tea, Lipton Ice Tea, Lipton Ice Tea Peach Light, Lipton Ice Tea with Rooibos, Manhattan

Black Ice Tea, Manhattan Green Ice Tea, Oros Ice Tea, Sir Fruit Brewed Ice Tea, Woolworths Brewed Ice Tea, Woolworths Ice Tea, Woolworths KJ Controlled

Green Tea - Comparative Pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite, Spar, and Woolworths

TABLE OF CONTENTS

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