November 01, 2024
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Load shedding to cost SA 350,000 jobs: PwC
Africa-news

Load shedding to cost SA 350,000 jobs: PwC

November 01, 2021

While the return of load shedding is not unexpected, it will significantly impact the country’s economy and will lead directly to further job losses, says professional services firm PwC.

Barclays CEO Staley quits over Epstein relationship
world-news

Barclays CEO Staley quits over Epstein relationship

November 01, 2021

British bank Barclays on Monday said chief executive Jes Staley had quit ahead of contesting the outcome of a UK probe into historical links with convicted sex offender Jeffrey Epstein.

Namibia bans poultry from Germany, Netherlands
Agriculture

Namibia bans poultry from Germany, Netherlands

November 01, 2021

The Ministry of Agriculture has announced the immediate suspension of imports and in-transit movement of live poultry, birds and poultry products from Germany and the Netherlands following the outbreak of Highly Pathogenic Avian Influenza.

What you need to know about Food Lover's Market
Companies

What you need to know about Food Lover's Market

November 01, 2021

The founders of Food Lover's Market Group, Brian and Mike Coppin have done extremely well and are making big moves in "silence".

The business was founded in 1993 as Fruit & Veg City and has since rebranded into Food Lover's Market Group, with an estimated annual turnover of +- R12 billion.

Food Lover's Market is one of the last few independent food retailers of scale on the African continent.

It has added categories such as bakery grocery, butchery and deli foods to complement its market leading position in fresh produce.

The Food Lover's Group now includes several retail brands like Seattle Coffee, Food Lover's Eateries, two liquor store brands and FVC International.

Food Lover’s Market biggest bet was when they partnered and subsequently acquired a 51% stake in Seattle Coffee Company from Pete Howie and Barry Parker in 2015.

Seattle Coffee Company has gain popularity over the years

Seattle Coffee Company

Seattle Coffee Company was formed the same year (1993) as Food Lover's Market in London, UK by husband and wife, Alley and Scott Svenson.

In 1996, Barry Parker and Peter Howie brought Seattle Coffee Company to Cape Town.

In 1998, Starbucks bought out Seattle UK and converted all 65 Seattle stores into Starbucks.

Starbucks acquired Seattle UK by exchange ~1.8 million Starbucks shares for 100% of Seattle in a deal worth ~$83 million.

When Peter Howie and Barry Parker brought Seattle Coffee Company to Cape Town in 1996, they also acquired the Southern Africa naming rights.

So, when Starbucks bought out Alley and Scott Svenson in 1998, the Cape Town store owned by Peter and Barry was the only Seattle left.

Enter Taste Holdings and Starbucks

Taste Holdings bought the South African master licence agreement for Starbucks for R226m in 2015 for 25 years and caught serious hands.

Taste was required to pay yearly royalties to Starbucks US of R2.5m.

Taste planned on establishing 12 to 15 outlets within first 24 months.

Capital expenditure and pre-opening expenses for the first 12 to 15 stores were estimated at R108m.

Market opportunity was estimated at 150-200 outlets, at an estimated capital expenditure per store of R3m-R10m.

We all know they never got to that 150-200 outlets.

Taste Holdings later disposed of 13 Starbucks stores for a mere lousy R7m, which was ~R538k a store as well as the franchise master to Rand Capital Coffee.

The estimated cost of opening a Starbucks store in South Africa was around R3m-R10m at the time.

Back to Food Lover's Market Group

Food Lover's Market FreshStop convenience stores located in Caltex stations is a hit as well.

There are +-330 FreshStop at Caltex outlets in South Africa which are open 24 hours.

The early bird catches the worm

In 2016, Actis, through its private equity arm invested R760 million for a minority stake in Food Lover’s Market.

Food Lover's Market used the proceeds to boost its local growth potential.

Actis has positioned itself well here.

Actis said that they are backing the founders.

Actis private equity portfolio focuses on consumer, financial services and healthcare.

It has ~$15bn funds under management and has raised US$24bn since inception.

Actis PE has invested US$5.7bn in 150 transactions and exited 100.

In 2016 when Actis invested R760m, FLM had;

  • ~120 Food Lover's Market stores in 11 countries,
  • 200 FreshStop convenience stores in Caltex stations.

2021;

  • 130 Food Lover's Market stores in 22 countries, including 5 in Namibia.
  • 330 FreshStop stores
  • 14 eateries.
  • 240 Seattle Coffee.
  • 46 Market Liquors outlets.

Should Food Lover's Market go public one day, Actis and the founders (Mike and Brian Coppin) will be rewarded handsomely.

The owners of Food Lover's Market Group said that for year ended 28 Feb 2021, Food Lover's Market turnover, excluding Seattle and FreshStop was R11bn-R12bn.

With the R760m investment from Actis and the strength of Food Lover's Market balance sheet, the group has the following expansions in the pipeline;

1) Continue opening 20 to 30 FreshStop convenience stores a year

2) Open 2-3 Food Lover's Market stores a year + refurb 5-6 stores.

Food Lover’s Market franchise requirements

Food Lover’s Market offers opportunities to own a store via a franchise agreement:

  • Average setup cost is R8m-12m, with an owner contribution of 50%.
  • Franchise/Royalty fee is 2% and marketing contribution is 0.5%of turnover.
  • Initial franchise agreement term is set at 10 years.

*By Maano Madima

 

NamPower speaks on uranium, solar and Van Eck
Economy

NamPower speaks on uranium, solar and Van Eck

October 29, 2021

Amid increased calls for countries to stop using fossil fuels such as coal for electricity generation, with renewable energy such as solar and wind taking centre stage as alternatives, The Brief (TB) engaged Nampower on these matters, including its future plans for the 49 year-old Van Eck Power Station.Below is an extract of responses from the power utility’s Managing Director, Kahenge Simson Haulofu (KSH).

TB: What is the current generation capacity of NamPower from its power stations?
KSH: NamPower’s generation capacity stands at 459.5 MW. Ruacana Hydro 347 MW, Van Eck Coal 90 MW and Anixas HFO 22.5 MW.
The Van Eck Power Station has an installed capacity of 120 MW; however due the power station’s ageing infrastructure the 4 x 30 MW units are restricted to 25 MW per unit of which only a maximum of two are operated at any given time and the other two on standby.

TB: How much electricity is imported to contribute towards local demand and from which countries?
KSH: NamPower imports electricity from Zimbabwe, Zambia, South Africa and the Southern African Power Pool (SAPP) in order to meet the country’s demand. The contribution of imports varies on an annual basis based on how well the local generation plants perform. On average, NamPower imports between 50% and 60% of its electricity requirement.

TB: What are NamPower’s plans when it comes to the Van Eck Power Station built more than 49 years ago, considering the cost of electricity generation and the cost of keeping it operational going forward?
KSH: The Van Eck Power Station is currently in the process of extending its generation licence for another ten years, meaning that the plant can be operational for another ten years before it is decommissioned - depending on whether other generation capacities are added to the Namibian grid.

TB: How much did NamPower spend on electricity imports last year and how much has been spent half year and how much has been budgeted for this year?
KSH: Kindly refer to our latest NamPower Annual Report which is available online. The figures are published on an annual basis.

TB: What impact have solar plants had on contributing to the national grid and does NamPower see them as the best solution towards addressing the country’s power requirements?
KSH: With an installed capacity of 130MW, renewable energy through Independent Power Producers (IPPs) contributed about 9% of the total electricity during the financial year 2020/2021.NamPower does not believe that energy from solar alone is the best solution towards addressing the country’s power requirements, but that a mixed supply from different renewable sources will have a bigger impact on addressing the country’s electricity requirements.

TB: Solar generated power has been found to be more expensive than that generated by existing power plans and imports. What impact does that have on pricing and cost for NamPower and how sustainable is it to buy the power from the solar plants going forward?
KSH: This is not entirely correct. Based on the size of a plant and procurement methods used, the price of each supplier differs. There are solar plants that are cheaper than imports and cheaper than NamPower’s thermal plants.
• The impact of solar plants on the cost and pricing is proportional or rather correlates with their total energy contribution of about 9%.
• NamPower is currently in the process of setting up its own 20 MW solar plant. Looking at “Solar to electricity” in terms of innovation and evolving technology, we are of the opinion that solar plants are sustainable to a limited extent due to their nature as they are not available 24/7.

TB: Is NamPower considering the use of uranium power plants locally, considering the abundant uranium deposits and lower product costs of such plants?
KSH: Currently there are no approved plans for a uranium power plant, however the Ministry of Mines and Energy is in the process of reviewing the National Integrated Resource Plan (NIRP) and will look at possible supply options preferably supply sources that require local fuel. In addition, NamPower is also in the process of reviewing its own Integrated Resource Plan (IRP) which will also explore potential supply options.

TB: Finally, is NamPower still part of the Kudu gas project?
KSH: Yes, NamPower as a government entity, offers support on developments on Kudu where its required.

CoW still owed a billion, with pensioners, businesses highest debtors
Economy

CoW still owed a billion, with pensioners, businesses highest debtors

October 29, 2021

The City of Windhoek (CoW) is owed over one billion dollars in municipal bills as at August 2021, latest figures show.

COVID regulations hit NAMDIA sales as profit tanks 86%
Mining

COVID regulations hit NAMDIA sales as profit tanks 86%

October 29, 2021

Namib Desert Diamonds (NAMDIA) says its after tax profits declined by 86% to N$13.3 million for the 2020/2021 financial year, as a result lockdown and travel restrictions emanating from the COVID-19 pandemic.

Airlines feel the pinch of 'exorbitant' fuel costs
Africa-news

Airlines feel the pinch of 'exorbitant' fuel costs

October 29, 2021

Southern Africa's transport operators are facing several challenges, but among the chief concerns is the rising cost of jet fuel.

Facebook is now Meta
world-news

Facebook is now Meta

October 29, 2021

Facebook is re-christening itself Meta Platforms, decoupling its corporate identity from the eponymous social network mired in toxic content, and highlighting a shift to an emerging computing platform focused on virtual reality.

GIPF pensioner living a life of purpose after retirement
Economy

GIPF pensioner living a life of purpose after retirement

October 29, 2021

Wilma Kamati is an executive committee member of the GIPF National Pensioners Association of Namibia (NAPAN). She serves on the Khomas Region team, and started her career as teacher at the age of 21. After 39 years of service, meeKamati retired and has since not regretted it.

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