IFFCO is a United Arab Emirates-based international group that markets and manufactures a range of mass-market foods, including fast-moving consumer goods (FMCG) such as sweets and confectionery.
IFFCO identified an opportunity in the South African FMCG market for good quality consumer goods at affordable prices and decided to launch here as a comprehensive, fully-fledged business last year October. With a broad background in food manufacturing, Lauren Siebrits was appointed CEO.
FRV: ‘Affordable indulgence’ – tell me more? Could you tell me a little about the buying trends of South African consumers in the current economic climate?
LS: I believe SA has lagged into recession. I also believe that indulgence is subjective. People have been living on credit and not wanting to change their lifestyles but small changes here and there, are having to be made. IFFCO offers a really good quality alternative and so it’s been easy for consumers to change from an A brand to a B brand, such as ours. In a blind taste test, two out of three said that Break was better than Kit-Kat. However, I have noticed that because of IFFCO’s pricing structure, people have turned their noses up, but once tried they’re gob-smacked at the quality.
Health and wellness is a trend we must be aware of as a responsible company and so we are launching products that are sugar-free. Other trends affecting consumer’s buying tendencies are convenience and indulgence. I would prefer to call IFFCO’s products ‘affordable quality’ rather than an ‘affordable indulgence.’
FRV: When do you intend manufacturing locally?
LS: At the moment landing products is cheaper than making them locally, but I’m serious when I say that we want to create another Tiger Brands. IFFCO wants to invest in SA. We are practicing what I call ‘backward integration’, starting to manufacture the packaging or mill raw materials in SA. We are also investing in the best technology.
FRV: How is the entry of Walmart in SA going to affect things?
LS: There isn’t enough competition in this country so Walmart is a wonderful thing for SA as it will change the playing fields of retailing. SA’s retailers make the highest margin out of anyone and I’m glad there’s someone to shake that tree. To me it’s a win/win situation and I will definitely consider doing business with Walmart.
