Johannesburg. 1 August 2024. Tiger Brands is branding spaza stores with bold murals serving as attractive township billboards, showcasing some of South Africa’s best-loved brands manufactured by the company, including ACE, Golden Cloud, Oros and KOO. The multi-million-rand project forms part of Tiger Brands’ expansion drive into the local informal trade, a programme it accelerated in mid-2023.
The food producer aims to brand a total of 2 000 spaza stores by 2029.
The first 50 stores to have their exterior walls emblazoned with designs featuring the company’s iconic brands are based in Gauteng’s well-populated suburbs of Soweto, Alexandra and Tembisa.
Local artists have been recruited to apply the branding using a variety of techniques including painting by hand, spray painting and vinyl application.
IMAGE ABOVE: Local artists apply branding to the Yellow Tuck Shop spaza store in Alexandra, north of Johannesburg. Tiger Brands will brand 2 000 spaza stores as ‘township billboards’, attracting more foot traffic to stores and increasing visibility of Tiger Brands products.
“The objective of the branding is a win-win for local traders and Tiger Brands. The trader benefits from increased consumer traffic into their stores, and Tiger Brands’ products receive more visibility as we increase our presence in the informal sector of the South African economy.
“Beyond this, the attractive outdoor branding conveys the vibrant nature and energy of our local townships, the unique entrepreneurial spirit of small business owners and South Africa’s tremendous artistic talent. It’s a place where a truly South African organisation like Tiger Brands feels right at home and where the business is rapidly making its mark,” says Luigi Ferrini, Chief Customer Officer, Tiger Brands.
IMAGE ABOVE: Monate Tuckshop in Alexandra, north of Johannesburg, branded by local artists, showcasing some of Tiger Brands’ most purchased core products in local townships. Tiger Brands plans to brand 2 000 spaza stores as part of its expansion drive into the informal sector.
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Tiger Brands’ presence in informal sector gains traction with its brands now available in more than 71 000 of a targeted 130 000 stores
Tiger Brands’ expansion into South Africa’s local township economy is gaining swift traction a year after it began accelerating its route-to-market strategy to increase the presence of its products in this booming market.
In 2023, Tiger Brands announced its targeted route-to-market strategy to increase its brands’ presence in at least 130 000 stores in the general trade over the next five years, including spaza stores, mini-superettes, superettes, and min-and midi-wholesalers. Since then, the business has increased its presence and visibility in more than 71 000 stores, up from 50 000 at the end of 2023.
The business expects to reach 90 000 stores by the end of 2024 and is well on track to cover a total of 130 000 stores over a period of five years. As part of its expansion in the informal sector, Tiger Brands offers business solutions to mini- and midi-wholesalers and store owners, to help grow the Tiger Brands share of the consumer basket in these outlets.
According to findings by Trade Intelligence (2022), more than 70% of South African households purchase their grocery and other product requirements within the informal trade. It is a significant market contributing at least 26% or R184 billion of the total R716 billion South African Fast-Moving Consumer Goods sector. The informal market’s growth rate exceeds that of modern trade.
“We see significant opportunity to grow in the township market by offering consumers affordable quality products that are trusted, sought-after and meet the needs of consumers,” says Ferrini.
Since the launch of its township route-to-market strategy, distribution and availability of Tiger Brands products in this market has increased by more than 90%.
In addition, Tiger Brands is working with customers to create ‘Perfect Outlets’ through investments in point-of-sale marketing execution across the Tiger Brands product basket, as well as branded coolers in stores to improve cold availability of Tiger Brands’ ready-to-drink beverages.
QUICK FACTS
Tiger Brands Township Economy
- Tiger Brands will expand its presence in130 000 general trade stores over the next 5 years.
- Tiger Brands has expanded its reach to more than 71 000 general trade outlets in townships (as of July 2024).
- Tiger Brands will invest in 2 000 ‘Perfect Outlets’ with point-of-sale marketing execution across the Tiger Brands basket and branded coolers to improve cold availability of Tiger Brands’ ready-to-drink beverages.
- Tiger Brands aims to create more than 500 local jobs in communities over five years.
- At least 200 jobs have been created to date with a focus on women.
- Largest Tiger Brands categories availability in General Trade:
- Culinary
- Grains
- HPC (Home and Personal Care)
- Snacks & Treats and Beverages
SA Informal sector
- South Africa’s informal sector contributes at least 6% of GDP and accounts for one-third of local jobs (Stats SA, 2021)
- Informal and independent traders, such as spazas, contribute 26% or R184bn of the total R716bn SA FMCG market (Trade Intelligence, 2022)
- More than 70% of South African households purchase from the informal trade (Trade Intelligence, 2022)
- The Informal trade includes:
- Hawkers
- Small Spazas
- Large Spazas
- Superettes
- Mini/Midi Wholesalers
- The South African FMCG informal independent market has grown at an average rate of 6.7% between 2018 and 2023 – faster than the modern market.
- By 2030, small retailers are anticipated to create 70% of all new jobs.
- Shoppers visit spazas on average 4 times per week compared to supermarkets which shoppers visit once a week.
- Spazas have a good understanding of their consumers and offer value and convenience.
IMAGES ABOVE: Local artists apply branding to a spaza store in Alexandra, north of Johannesburg, depicting some of Tiger Brands’ most purchased products in the informal sector. Tiger Brands will brand 2 000 spaza stores as part of its expansion drive into the informal sector.
