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SA ICE CREAM INDUSTRY LANDSCAPE REPORT

COMPILED: JANUARY 2016

REPORT OVERVIEW

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For the Global Ice Cream Section:

What are the current market dynamics of the global ice cream industry?

What are the key trends and product developments within the global ice cream industry?

What are the global ice cream industry restraints (and reactive strategies)?

For the South African Ice Cream Section:

What are the current market dynamics of the ice cream industry?

What are the key ice cream industry trends?

What are the ice cream industry drivers and restraints?

For the South African Ice Cream Competitor and Pricing Analysis Section:

Who are the key retailer in the SA ice cream industry?

What are the prices at various retailers e.g. Milky Lane, Steers, McDonald’s?

What are the prices of hand-held and tub ice cream at supermarkets e.g. Woolworths, Pick ‘n Pay, Checkers?

In terms of South African Consumer Insights and Trends:

What are the Hand-Held Ice Cream and Ice Cream Tub consumption trends and statistics (2011-2015)?

What is the Hand-Held Ice Cream consumer and Ice Cream purchaser forecast for 2016-2019?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

The South African Ice Cream Landscape Report (75 pages) provides a dynamic synthesis of industry

research, examining the local and global ice cream industry from a uniquely holistic perspective, with

detailed insights from competitor analysis and manufacturing to consumption.

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SCREENSHOTS FROM REPORT

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

China USA Japan Russia Germany

Top 5 Global Ice Cream Markets by Volume 2014

4Source: http://www.preparedfoods.com; http://www.cityam.com; http://www.euromonitor.com

4. Russia

Russian Ice cream has seen 2% volume

CAGR over the past year. Moderate but

confident growth is expected in 2016.

Inmarko, which belongs to Unilever

Group, continued to lead Russian ice

cream sales in 2014.

5. Germany

Low value growth is expected at constant

2014 prices, with a negligible CAGR.

The two leading players in German ice

cream, are Unilever Deutschland (26%

share in 2014) and Nestlé Schöller (14%

share).

5.9bill5.8bill

784mil668mil

545mil

SAMPLE FROM REPORT: GLOBAL INDUSTRY: MARKET

ENVIRONMENT (KEY MARKETS)

SAMPLE FROM REPORT: SOUTH AFRICAN INDUSTRY TRENDS

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Another industry trend is the shift

towards customisable ice cream

and the marketing of ice-cream as a

convivial social experience.

Unilever, for example, have opened up

what they call Magnum ‘’Pop Up

Stores’’ which give customers the

opportunity to mix and match ice

cream, thereby providing them with the

opportunity to explore new flavour

experiences.

Following the burgeoning global

trend, SA’s ice cream industry is

experimenting with mobile delivery

using ICT’s.

For example, Uber launched its ice

cream initiative in South Africa and

connected with customers through the

Uber app. Customers are able to see a

picture of the driver delivering the ice

cream and can watch them in real time.

Source: www.bdlive.co.za ; www.eatout.co.za

“We are really excited for the potential that

ice cream unlocks for us, our driver partners

and for our customer base’’.

- Alon Lits, General Manager of Uber

Johannesburg

SAMPLE FROM REPORT: SOUTH AFRICAN INDEPENDENT ICE CREAM OUTLETS

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The Unilever-Nestlé duopoly,

coupled with the ubiquity of global

Fast Food franchises, makes South

African ice cream a consolidated

market environment, raising high

entry barriers for new players.

However despite this, independent

retailers comprise 12% market

share.

But just how are they able to compete

with the MNC juggernaut franchises?

The growing trend towards

homemade artisanal ice-cream

among LSM 9-10.

The conviviality and trendy ‘social

ambiance’ within boutique outlets.

The blurring of lines between ice

cream and adjacent categories.

Unique product offerings e.g. liquid

nitrogen blasted ice cream; braai-

flavoured ice cream.

Source: http://www.flandersinvestmentandtrade.com;; http://foodstuffsa.co.za ; www.eatout.co.za

Gema Trattoria (JHB)

Tortellino D’Oro (JHB)

The Creamery (CT)

Nice Company (CT)

Cold Gold (CT)

Ballina Ice Cream (DBN)

Scoop Ice Cream (DBN)

SA’s Top Rated Independent Outlets:

SAMPLE FROM REPORT: SOUTH AFRICAN RETAILERS:

HAAGEN DAZS

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General Mills is one of the world's

larger food companies, with

offices or manufacturing facilities

in more than 30 countries. Based

in Minneapolis, Minnesota (USA),

their global net sales in fiscal 2014

were $19.2 billion.

At the premium end of out-of-home

consumption, Häagen-Dazs has about

seven stores across the country and its ice

creams are sold at retailers and garage

forecourts.

In October 2015, Haagen Dazs opened its

luxurious Haagen Dazs Café in The Zone at

Rosebank Johannesburg.

The Zone Café opening comes ahead of an

ambitious expansion drive which should

see Häagen-Dazs extend its hospitality and

experience closer to consumers throughout

South Africa.

This is in line with a most successful year in

the region for the Haute Couture of ice

cream brands.

Source: http://sandtontimes.co.za/; http://www.bdlive.co.za/ ; http://www.generalmills.co.za/

Haagen Dazs Stores

2015

7 Domestic Stores

In March 2014 Häagen-Dazs opened a Global

concept store in the Brooklyn Mall in Pretoria.

The store was designed to enhance the global

Häagen-Dazs experience. It is one of the

largest shops of the brand’s portfolio in South

Africa.

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Year Light (1) Medium (2-3) Heavy (4+) Total

2011 4,198,000 4,437,000 1,724,000 10,359,000

2012 4,392,000 4,740,000 1,706,000 10,837,000

2013 4,379,000 4,624,000 1,821,000 10,824,000

2014 4,257,000 4,685,000 1,915,000 10,857,000

2015 4,273,000 4,574,000 1,622,000 10,468,000

SAMPLE FROM REPORT: HAND-HELD ICE CREAM

CONSUMPTION TRENDS: 2011-2015

Between 2014 and 2015, the proportion of Hand-Held Ice Cream consumers who personally consumed 1 Hand-Held

Ice Cream in the last 7 days increased from 39% (4.2 million) to 41% (4.3 million).

Hand-Held Ice Cream consumers who personally consumed 2-3 ice creams in the last 7 days increased slightly

from 43% in 2011 to 44% in 2015, while consumers who personally consumed 4+ ice creams in the last 7 days

decreased from 17% to 15% over the same period.

41% 41% 40% 39% 41%

43% 44% 43% 43% 44%

17% 16% 17% 18% 15%

0%10%20%30%40%50%60%70%80%90%

100%

2011 2012 2013 2014 2015

How many Hand-Held Ice Creams have you eaten in the past 7 days?

Light (1) Medium (2-3) Heavy (4+)

Source: AMPS 2011A-2015A (Adult population 16+ years)

Sample Size: 24 427 (2011); 24 615 (2012); 24 824 (2013); 24 994 (2014); 25 078 (2015)

Based on weighted numbers

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TABLE OF CONTENTS

1. Executive Summary (5 pages):

1.1 Global Industry Snapshot 2015

1.2 South African Industry Snapshot 2015

1.3 South African Industry Trends and News

1.4 South African Consumer/Product Trends

1.5 Dashboard: Hand-Held Ice Cream Consumers and Ice Cream Tub Purchasers

2. Global Ice Cream Industry Overview (9 pages):

2.1 Global Industry Overview

2.2 Global Industry: Market Environment (Key Markets): China, USA, Japan, Russia, Germany

2.3 Trends and Product Development

2.4 Global Industry Challenges and Reactive Strategies

2.5 Key Global Manufacturers: Unilever

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TABLE OF CONTENTS

3. South African Ice Cream Industry Overview (18 pages):

South Africa Overview

3.1 Market Structure and Dynamics

3.2 Industry Trends

3.3 Key Industry Drivers

3.4 Industry Challenges and Reactive Strategies

3.5 Retail Co-Branding Strategies: Nando’s and Unilever’s Magnum

3.6 Product Development

South African Ice Cream Manufacturing Overview

3.7 Manufacturers: Unilever

3.8 Manufacturers: Nestle

3.9 Manufacturers: Gatti

3.10 Manufacturers: Other

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TABLE OF CONTENTS

4. South African Competitor and Pricing Analysis (20 pages):

South African Ice Cream Competitor Analysis

3.7 South African Retailers: Milky Lane

3.8 South African Retailers: Steers;

3.9 South African Retailers: Haagen –Dazs

3.10 South African Retailers: KFC

3.11 South African Retailers: McDonald’s

3.12 Independent Ice Cream Outlets: Nice Company; Cold Gold

3.13 New Global Players: Baskin Robbins

South African Competitor Pricing Analysis

3.14 Product Competitor Pricing Analysis (Brands: Magnum, Cornetto, King Cone, Nestle Heaven, Nestle Jive)

3.15 South African Major hand-held Ice Cream Brands (Brands: Magnum, Cornetto, King Cone; Retailers: Pick ‘n Pay, Woolworths, Checkers)

3.16 South African Major Ice Cream Tub Brands (Brands: Farm Fresh, Ola Rich ‘n Creamy, Country Fresh, Aylesbury)

Emerging Threat: Frozen Yoghurt

3.17 Frozen Yoghurt Market Trends

3.18 South African Frozen Yoghurt Retailers: Wakaberry

3.19 South African Frozen Yoghurt Retailers: Marcel’s

3.20 South African Frozen Yoghurt Retailers: Smooch

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TABLE OF CONTENTS

5. South African Ice Cream Consumer Trends (11 pages):

4.1 South African Consumer Overview

4.2 Hand-Held Ice Cream Consumers and Ice Cream Tub Purchasers: 2011-2015

4.3 Consumer Actual (2011-2015) and Consumer Forecast (2016-2019)

4.4 Purchaser Actual (2011-2015) and Purchaser Forecast (2016-2019)

4.5 Reasons for Slow Growth

4.6 Hand-Held Ice Cream Consumption Trends: 2011-2015

4.7 Ice Cream Tub Purchase Trends: 2011-2015

4.8 South African Consumption Trends

4.9 Hand-Held Ice Cream Most Often Brand: 2015

4.10 Ice Cream Tub Most Often Brand: 2015

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