By Larry Claasen
LIBSTAR’s exit from its non-food businesses will see it eventually see it becoming solely a focused food company.
Libstar, a producer and distributor of consumer packaged goods announced its strategic change at its results presentation.
In a response from Libstar to CBN’s questions on the shift, its CEO Charl de Villiers says the move will allow the group to focus more on its food businesses.
“Our core offering has always been food and as part of our new strategic direction, we have repositioned our portfolio to focus on value-added food categories. This reduces complexity, improves our execution capabilities and reinforces our status as a low-cost producer of quality food brands.”
The new strategy will see it exit its Chet Chemicals business. It has already closed its Franschoek-based Chamonix Spring Water.
A more focused group
De Villiers says Libstar is simplifying its portfolio composition and operating model to a core offering of value-added food categories.
“Our ambition is to grow the two super-categories of perishable products and ambient products sustainably and profitably by continuing to participate in and enter new attractive sub-categories.”
De Villiers adds: “As an example, our market-leading dairy brand, Lancewood, will shortly launch a range of value-added natural cheese slices to further expand its existing hard-cheese, soft-cheese and yoghurt offerings.”
It will also increase its participation in what it calls “attractive and under-represented channels” within its portfolio, namely exports and food service.
Libstar is best known for being the maker of inhouse food brands for major retailers such as Crystal Valley for Shoprite Checkers.
The group also has its own brands like Lancewood, Cape Herb & Spice, and Goldcrest; and distributes Tabasco Sauce and Robertson’s Spices.
In addition, it also exports to 50 countries and supplies international retail chains like Aldi, Trader Joe’s and Tesco’s.
A lucky break
The new strategy can also be seen in its Cape Herb & Spice brand now being sold in 500 Tesco stores across the UK.
The demand has been so good, the herb and spice brand has experienced an impressive 50% growth in export markets this year alone with the UK overtaking South Africa as the brand’s biggest market.
The launch of the Cape Herb & Spice brand in the UK came by chance, when the wife of a UK distributor sampled it while on holiday in South Africa five years ago.
This eventually led to it being sold through the online retailer Ocado, as well as the shelves of Asda, Morrisons, Sainsbury’s, and now Tesco UK with a Tesco Ireland launch coming in a few months.
Difficult to get onto UK shelves
Cape Herb & Spice sales and marketing executive Shelley Barnard points out that getting onto a UK retailer is a big achievement.
“The UK’s supermarket shelves are famously difficult to get onto and we are very excited to have secured this opportunity to introduce five of our most popular products to Tesco customers.”
