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Everyday

Cheese in

South Africa

Food 2012

Product Definitions

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Product Definition

Cheddar

A hard natural cheese with an orange to yellow colouring. If properly cured it

has crumbly texture but if too young the texture is smooth. The maturation time

also affects the taste with increasing sharpness with time

Cottage Cheese

Generally a creamy lumpy cheese sold in tubs. It is cured using acid rather than

rennet and has a short ripening time of 1 to 2 days. Cottage cheese may either

be smooth or chunky and may contain added flavourings

Cream Cheese This is also an acid cured cheese but unlike cottage cheese it requires a starter

culture of bacteria. It is generally mild and velvety in texture

Feta Cheese

A solid crumbly cheese with some fissures. Generally white in colour with a

strong salty flavour, originally of Greek origin. Other feta variants, such as

Danish feta, are also classified within this category

Gouda A semi-hard cheese smooth in texture but with a more pliable body than

cheddar. It is creamy yellow in colour with a typical nutty flavour

Mozzarella Cheese A soft textured light coloured cheese with a mild flavour. Usually used in the

preparation of pizza

Other Everyday Cheeses This includes Emmental, Edam and any uncoloured cheese

Market Trends

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Consumption of everyday cheese reached, reflected a increase from 2010 levels. Everyday cheese

contributed 0.2% to the South African Economy in 2011, thus remaining constant GDP share over the last few years Cheddar cheese remains the largest cheese type in terms of both value and volume The growth in gouda stabilised between 2010 and 2011 after some volume loss in 2009. Gouda regained

the second position in volume terms with mozzarella cheese moving back to third. This recovery is in the wake of strategic decisions by key players in this sector to focus on the gouda category Both soft cheese and other everyday cheese remain niche product offerings within this market

Mozzarella cheese stabilised in 2011 after the 2010 growth. Growth in this market is driven by the

foodservice sector, which consumes close to half of all the mozzarella cheese produced. The foodservice

market has recently seen greater diversification into other offerings like deserts and breakfasts, so the cheese component within that has subsided and a growth plateau has been reached. Cheddar cheese is by far the most popular cheese type across cow, sheep and goat milk cheese

Market Trends (Cont.)

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There is a growing trend towards production of goat and sheep milk cheese particularly amongst the smaller

regional cheeseries as consumers become more aware of the inherent qualities of these non-cow milk-based cheeses The majority of players interviewed were optimistic about the future of everyday cheese, although smaller

cheeseries cited that they were failing to compete against imported cheeses as these are priced more

competitively than their handmade cheeses. Fat free cheese, and feta in particular, is gaining popularity as the healthy eating trend continues to develop Closely tied to the health trend is the growing organic food trend which manufacturers mentioned as a key

area of growth going forward. Some consumers are also interested in knowing if the animals providing milk

are well cared for, and such endorsements on the product’s packaging are becoming more prominent in this market Some retailers pride themselves in the wide selection of cheeses on offer and that the speciality cheese

market is driven by these initiatives. On the other hand it also does make the market more competitive and therefore price sensitivity from the consumer begins to play a more dominant role

Total Market Volume

Everyday Cheese – 2011

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37.8%

7.3%

8.5%

24.3%

18.8%

3.4%

Cheddar Cheese

Cottage/Cream Cheese

Feta Cheese

Gouda Cheese

Mozzarella Cheese

Other Everyday Cheese

Note: Percentages may not add up to 100%, due to rounding.

Channel Distribution of

Everyday Cheese - 2011

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.

1.7%

34.6%

4.9%

47.8%

11.0%

Export

Foodservices Direct

Industrial

Retail

Wholesale

Local Regional Distribution of

Everyday Cheese - 2011

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Note: Percentages may not add up to 100%, due to rounding

Excludes Exports

9.4%

4.3%

33.9%

13.8%

2.4%

2.8%

2.8%

1.7%

29.0%

Eastern Cape

Free State

Gauteng

KwaZulu Natal

Limpopo Province

Mpumalanga

North West Province

Northern Cape

Western Cape

BMI Research

Information

8

Annual Quantifications

Total Market Quantification for 140 CPG Categories

What are the latest market trends? And:

• Is the category growing or declining?

• What does the future hold for the category?

• What are packaging trends for the market?

• Are category sales growing or declining in retail, wholesale or export?

• How is your product performing in foodservices?

Market Quantification involves sizing up markets annually to see volume, value and consumption trends.

The service is available for most food, beverage, confectionery and snack products. We have more than

10 years of historical data in tracking each market. Using these insights, you’re able to harness the

potential in your market by understanding strategic category trends across the total market.

A unique offering incorporating formal and informal market components.

Total market includes retail, wholesale, foodservices, industrial and exports.

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BMI Tracking Report Schedule

2012

Non-Alcoholic

Beverages

Bottled Water

Carbonated Soft Drinks

Cordials and Squashes

Fruit Juice

Iced Tea

Mague

Sport Drinks and Energy Drinks

Dairy Beverages

Dairy Juice Blends

Drinking Yoghurt

Flavoured Milk

Maas

Milk

For further enquiries please contact research@bmi.co.za

REPORT NAME PUBLICATION

Packaging

All Reports

Packaging Overview

Paper & Board

QPM

Quarterly Import

Annual Beverage

Reports Full Report (all reports below)

Alcoholic Beverages

Flavoured Alcoholic

Beverages

Malt Beer

Sorghum Beer

Spirits

Wine

REPORT NAME PUBLICATION

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BMI Tracking Report Schedule

2012

REPORT NAME PUBLICATION

On Request

Baked Products

Baking Aids

Eggs

Frozen and Par-Baked Products

Maize and Wheat

Premixes

Processed Meat Products

Confectionery and Snacks

Ice Cream

Packaging of Snack Foods

South African Confectionery Market

The Impulse Market in South Africa

For further enquiries please contact research@bmi.co.za

REPORT NAME PUBLICATION

Annual Food

Publications

Biscuits and Rusks

Breakfast Foods, Pasta and Rice

Dairy

Desserts

F&C Beverages

Fats and Oils

Pre-prepared Meals

Protein

Sauces

Soups and Condiments

Sweet and Savoury Spreads

Value Added Meals

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ISOS

(In Store Observation Services)

How is your brand performing in-store?

Every week, we answer questions like:

• Is my product available on shelf?

• Does my brand have its fair share of shelf space?

• Is my product listed and available in all stores?

• Is my gondola end in store?

• Do I have promotional activity in that particular store?

ISOS: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus

your competitors’ to assess your performance and remedy gaps. Ensure accurate data which translates

into tactical competitive advantages.

12

Print Ads Promotional

Pricing and Share of Spend

Is your product visible enough in promotional print Media?

Assess whether your brand is gaining sufficient share, relative to your spend on promotional print

advertising. Track competitor promotional pricing to tactically react on your own product pricing.

Daily, we answer questions like:

• What is the promotional pricing?

• What is the regional promotional pricing variance?

• What are competitors’ pricing tactics?

• What Rand value is spent on our brand versus competitor brands by retailers?

• Are we losing market share because of this?

Coverage:

• National daily and weekly newspapers

• Weekly community newspapers

• Consumer magazines

• In-store broadsheets

Print Ads: Covers all brands advertised in all regions by retailer by month. The analysis provides an

inside picture of the retail promotional environment. Track competitor promotions and pricing, offering top

line or granular data.

13

Commissioned Research

Need to investigate the market regarding other issues?

If your research need is not covered by our standard set of services, we will tailor-make a study

specifically for you.

BMI’s Commissioned Research is designed specifically to answer your questions in your particular

market. From industrial assessments to traditional consumer studies, we have the expertise to grow

your business.

These may include:

• Consumer Research

• Qualitative Research including Focus Groups and In-depth discussions

• Quantitative Research solutions across various target markets

• Service Quality Measurement (SQM)

• Pack Type Testing and Preference

• Product Testing includes taste tests and new product development

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LISP

(Liquor In Store Pricing)

How is your liquor brand performing in-store?

Each week, we answer questions like:

• Is my product available on shelf?

• Does my brand have its fair share of shelf space?

• Is my product listed and available in all stores?

• Is my gondola end in store?

• Do I have promotional activity in that particular store?

LISP: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus

your competitors to assess your performance and remedy gaps. Ensuring accurate data which

translates into tactical competitive advantage.

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Consumer Research

Getting into the hearts and minds of Consumers through interaction, stimulation and discussion.

Qualitative and Quantitative solutions including:

• Focus groups

• Depth interviews

• Workshops

• Store visits

• In home visits

• Consumer surveys

• Online research

• Mystery shopping

• International project management

BMI Research: Consumer Division has a passionate focus on consumer behaviour, combining

professional skills with optimal technology and products to complement insights. Project teams are

hand picked based on their knowledge and expertise of the subject matter and offers a range of

research methodologies that aim to give you a multi-dimensional and insightful solution to the

understanding of your product/brand. The division has the ability to draw on BMI Research’s

established experience in the retail and wholesale sectors, providing a unique and customized

solution to understanding consumer behaviour.

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For further information please

contact

BMI Research

(Pty) Ltd

Tel: +27 11 615 7000

Fax: +27 11 615 4999

Email: research@bmi.co.za

Visit our website on

www.bmi.co.za

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