stay cool and look after your fridges - Supermarket & Retailer

business ■ management ■ fmcg

www.supermarket.co.za

may 2016 R60.00 (incl. Vat)

ATMs & CAsh-hAndling:

let a machine handle your money

sherwood spAr:

save energy, save money

sTorewATCh:

Makro Carnival launches on sun powerreCipes for The sTore:

Cook for your customers

Mix UP

Mix any drink,anytime with the new Refreshhh!

mixer range! Available now in6 delicious flavours!

TEL. (011) 865 2598 (JHB). TEL. (043) 731 1718 (EL) TEL. (031) 940 0096 (KZN) TEL. (021) 001 4170 (CPT)

www.refreshhh.co.za refreshhh

refrigerATion:

stay cool and look after your fridges

We manufacture and supply quality industrial equipment at competitive prices

CAPE TOWN (HEAD OFFICE)c/o Iscor and Oop StreetBellville SouthTel: 021 951 2401Fax: 021 951 2358

GAUTENGJan Smuts ParkUnit 2, Jones Street Jet Park, JohannesburgTel: 011 397 6061Fax: 011 397 6275

KWAZULU-NATALUnit 5, Heron Park80 Corobrick RoadRiverhorse ValleyTel: 031 569 1517Fax: 031 569 1477

Website: www.tombake.co.za

Keeping up with technology…The new

Touch Screen Control

• 7-inchTouchScreenLCDDisplay• EnergyManagementSystemincluded• Softstartfeatures: Prolongsthelifeoftheelements, managesenergyinflowtosaveelectricity

• TemperatureregulationthroughSSR exact temperature control within 1 degree

• AllStainlessSteelmaterial (StainlessSteelAlloyElements)

• Output:360Doughnutsperhour (55gramsperdoughnut)

• Power:220V–SinglePhase(5.5Kw)• Dimensions:1100mmx650mmx550mm• Oildrainageoutletforcleaningpurposes Dismantelingforcleaningpurposes andre-assembly

• Operating/Instructionmanualincluded• Quickrecoveryofcapitaloutlay

Newly designed Doughnut Robot

• 36Programs• ProudlySouthAfricandesign Hardware and backup locally available• Ovenfootprint:1680mmx1280x2470mm• 120loavesperbakeor

540 hamburger rolls per bake (18trays)

F E A T U R E S

1SUPERMARKET & RETAILER, MAY 2016

BUSINESS • MANAGEMENT • FMCGMAY 2016 • Vol 66 No 5

R E G U L A R S

6 Sherwood SparEnergy efficiency could save more than R1,3 million in five years. By improving energy efficiency, a small Eastern Cape supermarket could save more than 30% in annual energy costs and reduce CO2 emissions by 182 tonnes By Tarina Coetzee

8 StorewatchMakro launches first store powered by renewable energy. Makro Carnival in Brakpan is the retailer’s first store to make use of renewable energy, and also the first to receive the Green Building Council’s green-star rating

28 Recipes for your storeThe shift to Home Meal Replacement. A good HMR department can be turned into a growth point for any supermarket and many South African supermarkets are exploiting this opportunity

40 ATMs and cash handlingCounting cash. The real cost of handling cash is becoming better understood and has lead to the increased acceptance of costly automated cash-handling systems that integrate the flow of money from till point to cash-in-transit (CIT) service providers and the banks themselves By Tarina Coetzee

4 What’s new?All the latest products, new variants and packaging changes

5 On promotionJuly is the ultimate comfort-food month. We celebrate the humble macaroni and cheese, as well as lasagna, so make sure that you are ready for all the cold hungry customers that will storm your deli. And don’t forget to be well-prepared for the other ‘foodie’ days celebrating milk-chocolate, fresh spinach, junkfood and cheesecake

12 Delight your customersOnce a gaffe is captured on social media you are playing catch-up. The danger of reputational damage is now much greater thanks to social media and the speed at which negative comments can be shared. React quickly, be honest and apologise By Aki Kalliatakis

14 S&R /Field Agent BarometerServing the Western Cape. Field Agent conducted an audit across retailers in the Western Cape to determine the standard of their customer service, using crowdsourcing to collect information through smartphones

46 Back to basicsForming a salary and wage policy. One can go bankrupt from spend ing too much on remuner ation and go to court for spending too little. But these are just two of the constraints that have to be taken into account when determining salaries and wages By Hippo Zourides

48 Industry news & diaryA collection of local and international items of interest to retailers, plus a calendar of upcoming trade fairs and events

15 RefrigerationStay cool – look after your fridges. Investing in the best refrigeration equipment for your store is only the first step of a long journey. If you do not constantly maintain the equipment, you will not get value for your money and the fridges will not be as efficient as you want them to be By Hippo Zourides

C O V E R S T O R Y


Keep up with technology and changeFifteen years or so ago few retailers had much appetite

for energy efficiency.

The cost of electricity was a relatively minor item on the income statement and

provided little incentive to invest in high-tech technology to reduce its impact.

The repeated and continuing high increases in the price of electricity and its

unreliability have changed all that. For some retailers reducing both the use of

electricity and its cost is now a matter of life and death, or, at least, the difference

between surviving and thriving.

Most of the focus until now has been on reducing the use of electricity through

the installation of more efficient refrigeration plants and the move to low-energy

lighting. In this issue you’ll find more on energy-efficient refrigeration and reducing

the cost of its maintenance, as well as on new options on the market in the form

of closed-water-loop self-contained cabinets. These are proving viable in many

situations, especially for small- and medium-sized supermarkets.

Now, as with our Storewatch feature on Makro Carnival and Sherwood Spar,

there’s a new twist in the scenario for reducing the cost of electricity – produce it

yourself from the sun!

It now takes the kudos you get from going green straight to the bottom line in

the form of reduced electricity costs. Not only can you now produce electricity on

your premises for less than the lowest Eskom or municipal time-of-day rate, but

through the careful choice of tariffs and control of refrigeration functions you can

reduce the total cost further.

At the moment, the cost of storing solar power for night-time use makes it

impractical for retailers to get off the grid entirely. But with solar power providing

most of the daytime electricity and the grid providing low cost electricity at night,

a store’s total electricity bill can be considerably reduced.

Perhaps the biggest problem with all this hight-tech technology for many

retailers is its cost. In our Refrigeration feature you’ll find really good news on this

front in our editorial and from our advertisers. You can get many of the benefits of

high technology in refrigeration and solar power without making the investment

or worrying about the maintenance and management of these facilities. Read

about power-purchase and cooling-purchase agreements in this issue for more on

the subject.

The real cost of handling cash is becoming better understood and has lead

to the increased acceptance of costly automated cash-handling systems that

integrate the flow of money from till point to cash-in-transit (CIT) service

providers and the banks themselves.

In our feature on Cash handling we look at the latest technology and products

available and we also tell you why it is worth your while to invest in cash-handling

automation.

Food service, including home meal replacement (HMR), is becoming

internationally recognised as one of the fastest growing revenue and profit

opportunities for supermarkets.

In our Recipes for your store feature in this issue we give some ideas that will

make your store a firm favourite with customers in your area.

We hope that the features and other articles in this issue provide you with both

the insights and inspiration to keep up with rapid change in our operating and

trading environments and the new technology that underpins our profitability.

Enjoy the read

Steve Maister

\E D I T O R I A L C O M M E N T

MAY 2016 ■ Vol. 66 No 5Website: www.supermarket.co.za

■ ■ EDITORIAL ■ ■ ■ ■

Managing Editor: Stephen Maister (BCom)[email protected] PA to Managing Editor:Ivana [email protected] Editor:Hippo [email protected]:Tarina [email protected] Editor:Nina [email protected]

■ ■ AD SALES ■ ■ ■ ■

Johannesburg: 011–728-7006Stephen Maister: 082-604-5606Helen Maister: 082-601-3055Marlane Williams: 011–728-7006Cape Town: 021-554-3761Karen Prumm: [email protected] Advertising email: [email protected] bookings:Ivana [email protected]: 086-505-0351

■ ■ CirCulATioN, SuBSCriPTioNS AND ACCouNTS ■ ■ ■ ■

Muneera KaraEmail: [email protected]

[email protected]: 086-505-0322

■ ■ ADMiNiSTrATioN ■ ■ ■ ■

Financial director: Lydia Maisteremail: [email protected]

■ ■ CoNTACT uS ■ ■ ■ ■

Phone: 011-728-7006Fax: 011-728-6182 or 086-528-0754Postal Address:P O Box 46066, Orange Grove, 2119Physical Address:15 Grove Road, Cnr 3rd Avenue, Mountain View, 2192

■ ■ TO SUBSCRIBE ■ ■ ■ ■ To receive Supermarket & retailer each month, please send details of your company, your position and your postal address, together with your subscription (see rates below) and make payment to:Supermarket & retailerP o Box 46066, orange Grove, 2119Subscription rates■ South Africa – R715.00 (incl VAT)■ Southern Africa – R1 010.00 (Namibia, Botswana, Swaziland,

Zimbabwe, Lesotho, Malawi, Mozambique)■ All other countries (airmail) – R2 500.00

CirCulATioN PoliCYOur ABC controlled circulation covers owners, executives and management operating in South Africa’s ±4 500 hyperstores, supermarkets, superettes, grocery wholesalers and selected mass merchandise outlets.

CoPYriGHT©The copyright of all material in this magazine and its supplements is reserved by the proprietors, except where expressly stated. The Editor will, however, consider reasonable requests for the use of information on condition that the source and author are clearly attributed. Important: the material in this magazine may not be reproduced on any electronic archiving, retrieval or distribution system.

PuBliSHErSSupermarket & retailer is published by:Supermarket and Retailer (SA) cc Reg No. 2007/076713/23

PriNTErS – Typo

CirCulATioN AuDiTThis publication’s circulation is audited to the exacting standards laid down by the Audit Bureau of Circulations. This guarantees advertisers that the circulation stated below is delivered.

Total ABC Circulation 9 196

January – March 2016The above ABC Audit guarantees the average number of copies of the magazine circulated in the audit period. Further information on the reader profile and readership is available on request.

Marvello makes more magic in the kitchen

Marvello, one of South Africa’s best-known

foodservice brands, has responded to

insights from chefs with the reformulation

and rebranding of its product range,

providing a product to suit every chef’s

needs. The new Marvello Professional

range from Unilever Food Solutions has

been given a packaging facelift, as well as

improved flavour and is available in:

■ Marvello Butter Flavoured, a unique

blend of butter flavours and buttermilk that

is ideal for sautéing and sauces;

■ Marvello Bake, a new addition to the

range that is also made with a unique

blend of buttermilk and butter flavours that

is ideal for baking;

■ Marvello Multipurpose, a great-tasting

spread made from a blend of vegetable oils

that is versatile enough to use in multiple

applications; and

■ Marvello Spreadable, a ready-to-use

spread that is soft enough to spread

straight from the fridge.

For more information, send an email mar-

[email protected] or visit

www.unileverfoodsolutions.co.za. Also see

recipe and advertisement on pages 38–39.

The luxury of good chocolateCadbury GLOW is the

perfect gift for any

occasion, guaranteed to

reignite joy for both the

giver and the receiver.

The individually wrapped pralines have

a delicious velvety centre, covered in

A breakfast to thrive onThrive is a high-protein, multigrain breakfast cereal that is quick, convenient and delicious, turning breakfast into a breeze. It is formulated with

pea protein, a unique, easy-to-digest vegetable protein that contains the essential amino acid lysine that supports growth and development of children and also plays a role in the maintenance of a healthy immune system. It is available in 500g boxes in chocolate, vanilla and strawberry.

Dentyne Gum reveals new lookDentyne is giving South Africans new reasons to smile with the launch of a fresh new packaging

for its gum. The new pack design has a premium, contemporary finish, while still relying on colourful visuals. While the packaging has been updated, Dentyne’s flavours – Strawberry, Spearmint and Dentyne White – remain unchanged. Dentyne also remains committed to its good-for-teeth promise – the entire range is sugar free. The new look Dentyne Chewing Gum packs is available nationwide with a recommended retail price of R11,99.

Get more with Jacobs economy packs

Jacobs Krönung is giving coffee lovers more reasons to cuddle up and keep warm this winter, with the launch of its 40g, 250g and special 250g+50g packs. These new economy packs, which

add to the existing 75g and 150g range, offer consumers the same Jacobs coffee taste at even more affordable prices. All Jacobs pouches are resealable. Made from 100% real coffee, the new economy packs are available nationwide at all leading retailers.

chocolate. Available at selected retailers

in two sizes: 160g at a recommended

retail price of R74,99 and 240g at a

recommended retail price of R109,99.

Waterkloof releases organic Sauvignon Blanc

Over a year after harvest,

Waterkloof Wine Estates’

Circumstance Sauvignon

Blanc 2015 and the limited

Waterkloof Sauvignon

Blanc 2015 have recently

been released. Both wines

are certified as organic by

CERES (Certification of

Environmental Standards

GmbH) and biodynamic by

Demeter International

based in Germany. The Circumstance

Sauvignon Blanc 2015 is available directly

from the cellar at R100 a bottle.

Gabriëlskloof Rosebud – with restrained elegance

Gabriëlskloof Estate,

a family wine jewel

nestled atop a hill on

the outskirts of Bot

River, has just released

the 2016 vintage of

its dry Rosebud –

a delicately restrained

rosé reminiscent of

the Provençal style of Southern France.

It is available at R70 a bottle and is ideal

as an aperitif while it also complements

smoked salmon, crayfish thermidor, sushi,

Japanese tempura and teriyaki, mushroom

or truffle risotto and creamy goat’s cheese

exceptionally well.

A nappy made for movement Huggies

Nappy Pants

are designed

to fit babies

from the time

they start to move

around until they no longer need to wear

nappies. They are as absorbent as regular

open nappies, but fit like underwear so

that babies can wriggle, climb, crawl and

roll more easily. The all-round soft and

stretchy waistband stops the nappy pants

from slipping down and the double leg

What’s new?▲


three exciting variants: Zesty Lemon, Fresh Potpourri and Gentle Lavender. Vipec is part of the MAQ family and is guaranteed to remove household grease and grime. The product is available at leading retailers in pack sizes of 750ml.

Driving on oilThe new B-Tech 40 processor converts used cooking oil into environmentally friendly biodiesel in just 10 to 12 hours with a production cost of less than R6 a litre. The fully automated processor uses a pre-packed ready-

to-use chemical treatment supplied by Bio-Dynamic Fuel that converts 40 litres of used cooking oil into 40 litres of all-purpose biodiesel in each cycle. The B-Tech 40 is a patented South African invention, manufactured and assembled in South Africa and designed for African conditions. The processor is the size of an industrial washing machine. The biodiesel can be used to power a diesel generator, forklift or delivery vehicles, or as fuel for a diesel-burning bakery oven. For more information, contact Shaun Dalrymple on 083 788 2730 or visit www.bd-fuel.com.

WHAT’S NEW?elastic prevents any leaks. They are perfect

for both day and night, with up to 12 hours

of dryness and gender specific designs for

comfort and effectiveness for boys and

girls. The soft breathable outer cover has

exclusive Disney designs of Mickey and

Minnie Mouse. It is available in pack sizes of

7-12 kg, 9-14 kg, 12-17 kg and 15-25kg

Spray before you go

Poo-pourri, a before-you-go toilet spray, is

a blend of natural essential oils that creates

an odour-trapping barrier on the surface

of the water, stopping odour before it

begins. It is available in Original Citrus and

Lavender Vanilla in 30ml (one fluid ounce)

at R75 and 60ml (2 fluid ounces) at R220.

New package size for shoe polish

An addition to the existing 50ml size

product, Max Shoe Polish is now available

in a 100ml tin. The new-look packaging

with an easy-to-open twist cap still offers

the same quality polish with real colour

technology to waterproof, shine, protect

and boost the life of footwear. A proper

polish – applied evenly, followed by a quick

buffing with a clean dry cloth or brush –

goes a long way to keep shoes shiny and

looked after. Waterproofing leather shoes

or boots will extend their durability and

improve their appearance. The polish is

available in black, brown, neutral, as well

as tan.

BIC celebrates birthday with new range

To celebrate 60 years

of the iconic BIC Clic

Medium ballpoint pen,

BIC is launching a limited

edition Gold and Silver

range. The BIC Clic

Medium pen features

a retractable side-push

button and barrel that

shows the visible ink

level. To celebrate this

milestone, BIC will

be donating 60 000 pens to underprivileged

school children. Consumers can play a

part in this initiative by buying specially

marked packs with the “buy a pen and

donate a pen programme” sticker. The pens

are available in blue, black and assorted in

blister packs of six and four.

New all-purpose MAQ cleanerSouth African homecare manufacturer Bliss

Brands has recently launched Vipec, an

affordable all-purpose active cleaner, in


▲

cheese. But it is more likely that Jefferson

encountered the dish in Italy and brought

back the recipe.

Be that as it may, both macaroni and

cheese and lasagna provide supermarket

owners with excellent home-meal

replacement opportunities.

Celebrate these two special days

by preparing a special treat for your

customers, while at the same time

promoting your home-meal replacement

department.

Chocolate, chocolate and more chocolate

On 28 July we celebrate the joy and

happiness that milk chocolate brings

to every chocoholic in the world. And

apparently milk chocolate is not all bad.

According to research, it can reduce the risk

of heart disease and strokes and also boost

your memory and hydrate your skin.

Well, that is my story and I am sticking

to it!

Selling chocolate to a chocoholic is

probably as easy as taking candy from a

baby, but you can improve your offering

by preparing a few recipes containing

chocolate.

Your customers will love you for ever.

And for the rest…

For your customers who like big forearms

and something a bit healthier, Fresh

Spinach Day is celebrated on 16 July.

For the rest there is always Junkfood Day

on the 21st or Cheesecake day on

31 July.

The ultimate comfort food

In July we celebrate the humble macaroni

and cheese on the 14th and lasagna on

the 29th, the ultimate comfort foods for

cold winter evenings spent with friends and

family.

Since the Kraft Company put it in a box

in 1937, every American kid grew up with

macaroni and cheese.

But, according to cookbook author

Clifford A Wright, there can be no doubt

that its ultimate origins are Italian, as one

finds macaroni and cheese recipes from the

late thirteenth century in southern Italy.

The anonymous Liber de coquina, written

in Latin by someone familiar with the

Neapolitan court then under the sphere

of Charles II of Anjou (1248-1309), has

a recipe called de lasanis, which we can

call the first macaroni-and-cheese recipe.

In this case, lasagna sheets made from

fermented dough and cut into squares

that were cooked in water and tossed with

grated cheese, probably Parmesan. The

author suggests using powdered spices

and layering the sheets of lasagna, just like

today, with the cheese if desired.

But, says Wright, the American macaroni

and cheese has two main lines of ancestry

claimed. In the first, it is thought that

macaroni and cheese was a casserole that

had its beginnings at a New England church

supper. In southeastern Connecticut it was

known long ago as macaroni pudding.

In the second and more famous story,

and more than likely the original story, it

is said that the classic American macaroni

and cheese returned with Thomas Jefferson,

the American founding father, to Virginia

after his sojourn in Italy.

Jefferson had brought back a pasta

machine from Italy. His daughter Mary

Randolph became the hostess of his

house after Jefferson’s wife died and she

is credited with inventing the dish using

macaroni and Parmesan cheese. Later, the

Parmesan was replaced with cheddar

On promotion

3 JULY Eat Beans DayInternational Plastic Bag Free Day4 JulYBarbecued Spareribs Day6 JULY Fried Chicken Day7 JULYIslamic Holy Day: Eid-ul-Fitr

(termination of fasting)World Chocolate Day12 JULY Pecan Pie Day13 JULY French Fries Day14 JulY Macaroni Day16 JULY Fresh Spinach Day18 JULY Nelson Mandela Day20 JULY International Cake Day21 JULY Junk Food Day23 JULY Hot Dog Day28 JULYMilk Chocolate Day29 JulY Lasagna Day30 JULY Cheesecake Day

JULY 2016 PROMOTIONAL

CALENDAR

21 July is Junk Food

Day



Over five years, this would amount to

savings of R1,36 million, according to an

energy audit funded through the National

Business Initiative’s Private Sector Energy

Efficiency (PSEE) programme.

Sherwood Spar in Port Elizabeth is open

98 hours a week, every day of the year. The

1 388m2 retailer has 82 employees who

work shifts between the butchery, bakery,

delicatessen, fresh-produce section and

Tops liquor store.

Of the 875 000 kWh of energy used

in a year, 82% is for electricity, 16% for

paraffin and 2% for liquefied petroleum gas

(LPG). In the year to June 2014, this cost

the company R916 000 and resulted in the

release of 686 tonnes of CO2.

What the PSEE recommendedMicro-sprayers

The PSEE report found that compressor

efficiency could be improved by installing

micro-sprayers on the compressors, saving

an estimated R23 000 in energy costs and

19 tonnes of CO2 emissions each year.

Energy monitoringImplementing an energy-monitoring and

targeting system could save an estimated

R38 000 per annum in energy costs. This

involves collecting and analysing energy-

related data, communicating insights to

management and staff and taking action to

improve overall energy performance.

The audit recommended that an

energy manager be appointed to take

responsibility for monthly energy use and

its cost implications. The energy manager

would also lead an energy campaign to

make staff more aware of ways to save

energy.

Temperature settingRaising the standard temperature setting

on the air-conditioning would reduce HVAC

energy costs by 9%, the audit found. The

consultants noted, however, that this

needed to be balanced against a possible

subsequent rise in energy consumption by

refrigerators.

Switching off non-essentialsA remote-operated control system on non-

essential energy loads would enable the

Sherwood Spar energy manager to track,

manage and control loads remotely using

a cloud-based mobile solution. During peak

times when the kilowatt-hour rate is at

a premium, the system could be used

to turn off non-essential machinery and

equipment, contributing to a saving of up

to R49 235 a year.

LightingSwitching current lighting in the store to

LED technology can result in a saving of

R84 931 in annual energy costs. Existing

lighting costs the facility R297 a day. The

introduction of LEDs will bring this cost

down to R65.

Replacing the current inefficient

refrigeration lighting with energy-saving

LED technology can lead to additional cost

savings of R10 329 a year, the audit found.

Air curtainThe audit recommended the installation of

an air curtain over the main shop entrance

at a cost of R7 500, which would result

in an annual savings of about R25 000 by

preventing cool air from escaping.

Future plansThe PSEE audit suggested that Sherwood

Spar consider a solar-panel installation, as

well as investing in energy-efficient and

environmentally friendly fridges.* Investment costs are estimates based on the

experience of the PSEE and its consultants, and are provided to companies audited for guidance purposes only.

What Sherwood Spar has doneIDM Solutions, an energy-management

company that uses a measurement

and verification approach to assist

clients to reduce energy usage and costs,

implemented a measurement and targeting

SHERWOOD SPAR

Hierarchy of energy management

1. Status Quo – Analysis of

historical energy spend and the

development of benchmarks

2. Smart meter installation

3. Process optimisation

4. Energy-efficient equipment

replacement

5. Self generation

Energy efficiency could save more than R1,3 million in five years

By improving energy efficiency, a small Eastern Cape supermarket

could save more than 30% in annual energy costs and reduce CO2 emissions by 182 tonnes.

By Tarina CoeTzee

energy-management programme at Sherwood Spar to measure and verify expected energy savings from the implementation of a number of energy-saving opportunities.

According to Tim Whitaker, an energy expert at IDM Solutions, the audit done by the PSEE programme was very valuable.

“After the current renovations at Sherwoord SPAR, we plan on implemented even more energy-efficiency measures,” he says.

A number of energy-saving opportunities have already been implemented:

■ Introduction of smart meters and the implementation of an energy-management programme. (October 2014)

■ Installation of daylight harvesting using light catchers. (March 2015)

■ Installation of LED lights as replacement of inefficient luminaires. (December 2015)

■ Installation of a 100 kW photovoltaic (PV) system by M Solar. (December 2015)

Installation of daylight harvesting using light catchers Light catchers are polycarbonate domes

placed in the roof of a building to facilitate

daylight harvesting. The increased daylight

during trading hours reduces the need for

internal lighting.

The hourly lighting energy costs dropped

from R14 per hour to R6 per hour. The daily

winter saving is around R53 (25%).

During a summer month, the hourly

lighting energy costs drop from R14 per

hour to R2 per hour. The daily saving is

around R100 (50%).

Solar PV system In the two graphs above, the hourly

electricity costs with and without 100 kWp

photovoltaic panels are shown.

Using the July 2013 to June 2014 data

as a baseline, annual savings of R306 000

(31%) are expected in the July 2016 to

June 2017 tariff year.

Further savings can be expected once

the other energy saving-opportunities

identified during the PSEE audit are

implemented.


Adding a great range of versatility to your store environment

• Checkout Counters & Accessories • Impulse Units & Queuing Systems • Kiosks & High Value Counters • Standard & Bulk Gondolas • Fruit & Veg • Bakery & Confectionery Solutions • Deli & Food Prep • Magazine & Flower

Stands • Racking & Shelving • Project Management & Store Design

Proudly approved suppliers to many major chain stores and independent traders. Servicing supermarket and wholesale retailers, our products are built to withstand the vigour of the industry and satisfy the aesthetics of the store design.

Head Office & Factory: +27 82 652 5831 / [email protected] www.broleighinstoresolutions.co.za

BROLEIGH INSTORE SOLUTIONS

Sherwood SPAR hourly electricity cost on 17 Dec 2015 = R3 700R300

R250

R200

R150

R100

R50

R0

n P1 n P2 X Energy

Sherwood SPAR hourly electricity cost with PV panels on 18 Jan 2016 = R1 600R250

R200

R150

R100

R50

R0

n P1 n P2 X Energy

Peak is 7am to 8pm (p1). Off peak is 8pm to 7am (p2).When Sherwood Spar moved its tariff, it resulted in a 10% reduction in energy costs.

“The plant has a peak capacity of 572

kW, making it among the largest solar

installations located at a standalone retail

store,” says Massmart group sustainability

manager Alex Haw.

According to Alan Walker, Makro SA’s

store-development manager, implementing

PV at the Makro Carnival store underlines

the commitment to reducing the

company’s environmental footprint.

“Since 2010 we have been greening

our stores with the aim of saving energy,

reducing running costs, thereby improving

the in-store environment and customer

shopping experience. We achieve this by

ensuring that all new stores are sustainably

developed and that older stores are

retrofitted with a variety of energy-

management technologies and systems,”

he says.

ESA, a company with experience of more

than four decades in the electrical industry,

partnered with Makro Carnival to install a

PV solar plant that is designed to produce

520kWp DC peak of green energy. This

translates into nearly one million kWh of

With solar Photovoltaic (PV) panels in its

parking area, Makro Carnival is expected

to produce approximately one million

kilowatts of electricity per annum. It is

estimated that the PV installation will

account for between 60% and 80% of the

building’s electricity needs during the day,

and 30% of the stores total annual energy

requirement.

Instead of purchasing and installing the

PV system itself, Makro chose to enter into

a power-purchase agreement (PPA) with PV

solar company Energy Systems Africa (ESA).

The reason for this is that the company has

no experience in managing a PV system.

Nonetheless, the cost of its electricity

usage in terms of the agreement is less

than the cheaper night-time rate it gets

from the municipality. At the same time,

ESA has given guarantees on the minimum

amount of electricity the system delivers,

with penalties for under delivery that will

compensate Makro for increased costs of

supplementing the electricity from either

the municipality or from using its standby

diesel generators.

electricity per annum, all of which will be

for Makro’s own consumption.

According to Rodney Love of ESA, the

Makro Carnival’s PV solar plant has a total

of 2 160 panels comprising of walkway and

carport structure installations, with each

panel producing 250w.

“Not only do the solar carports provide

a cool parking experience for shoppers,

but also achieve the primary objective of

generating green energy for the Makro

Carnival store,” he says.

The PV solar plant will mitigate 1 013

tonnes of CO2 per annum by reducing the

Makro Carnival store’s carbon footprint

by the same tonnes of CO2. Green energy

is carbon neutral whereas electricity

generated from fossil fuels such as coal

releases CO2 into the atmosphere.

“We have signed a 20-year power

purchase agreement (PPA) with Makro

Carnival. Under the PPA, ESA fully funds

and owns the PV solar plant, and charges

Makro Carnival a pre-agreed green tariff for

the electricity generated from the plant.


STOREWATCH Makro launches first store powered by renewable energy

Makro Carnival’s PV solar plant has a total of 2 160 panels comprising of rooftop and carport structure installations, providing cool parking, as well as generating green energy for the store.

Makro recently opened Makro Carnival, its most energy-efficient store to date, in Brakpan in Ekurhuleni.

It will be the retailer’s first store that makes use of renewable energy, and also the first to receive

the Green Building Council’s green-star rating.

“In this process, we commit to provide a

guaranteed minimum amount of electricity,

which the customer has agreed to buy.This

commitment is based on an international

simulation model that computes some

60 years of weather data. The simulation

model takes into account GPS coordinates,

pitch angle of the panels, north orientation

and plant equipment and then calculates

our expected green-energy supply.

“While our customers have the option

to acquire and own the plants we install,

the PPA model is gaining traction, as

businesses opt to rather use their financial

resources to invest into their own business

development. ESA’ expertise lies not only

in its ability to commission sophisticated

solar power plants for customers in all

applications, but in developing financing

packages based on committed PPA’s from

our customers,” Love says.

Green technologyTo further minimise Makro Carnival’s

impact on the environment, the store

has implemented various other green

technologies that will reduce overall water

and energy consumption, and ultimately

result in cost savings. These include

installing daylight harvesting, lighting

controllers, energy-efficient lighting, heat-

reclaim facilities, thermal-storage systems,

and condensate and rainwater harvesting.

“In our new stores our energy-efficiency

interventions are focused around four key

areas: lighting, refrigeration, airconditioning

and building-envelope management,” says

Walker. “Therefore, in addition to the

PV panels, the building has a daylight-

harvesting system that reduces the store’s

electrical lighting requirements. Other

energy-saving technologies include 100%

LED lights throughout the store and

motion sensors in the offices and storage

rooms that automatically switch lights on

and off.” LED lights are 40% more energy

efficient than metal-halide lights and up


▲

The new Makro Carnival is the retailer’s first store that uses renewable energy, and also the first to receive the Green Building Council’s green-star rating.

Above: The excitement of the Makro Carnival opening. Below: Panoramic view of the store layout.


Today you can produce electricity at your store for less!

And, thanks to an innovative Power Purchase Agreement, you don’t have to purchase the solar installation yourself. Like we did at Makro Carnival, Energy Systems Africa will design, install and maintain a solar power plant at your store for you and sell you the electricity it produces for less than your electricity tariff. The green sustainability component elevates your business into a new realm.

To find out more how solar power can lower your cost of electricity and how it fits into a store’s power usage and takes advantage of Eskom/council tariff structures, visit our website.Or, call Rodney Love on tel: 011-897-7800 cell: 082-552-7678

Email:[email protected] Website: www. esafrica.co.za

Let solar power help youreduce your electricity costs

effect on job creation in the area. It has

a total full-time staff complement of 387

employees, with local community residents

accounting for 80% of the total.

Saving spaceAnother example of Makro’s willingness

to invest to save is its use of articulated

narrow-aisle forklifts that can operate

in 1,9m aisles. The aisles are 2m wide to

accommodate the forklifts, saving a metre

in each aisle, thereby giving the warehouse

10% more capacity.

What is a power-purchase agreement?In its simplest form, a power-purchase

agreement (PPA) exists between every

consumer of electricity and Eskom or the

local municipality. Where government has

initiated big renewable-energy projects,

the term PPA describes the long-term

agreement between private owners of large

installations, such as wind or solar farms,

and Eskom.

to 60% more efficient than fluorescent

lights, depending on the quality of the

fluorescents.

Makro has also invested in an energy-

efficient refrigeration solution with the

latest energy-saving features. Automated

night blinds, high-speed doors and better

insulation has been installed to reduce heat

loss.

This refrigeration solution also uses

carbon dioxide, which is 100% natural, has

zero ozone depleting (ODP) and a global

warming potential (GWP) rating of 1.

Other energy saving measures include

moisture sensors on glass-door fridges.

When moisture in the store hits a critical

level the sensors switch on the door

heaters to stop fogging, but for most of the

time the humidity is low enough and this

saves an estimated 80% of the electricity

that would otherwise be wasted.

Makro Carnival is over 22 000m2 in size,

with 13 500m2 of trading space, making

it the biggest Makro store to date. The

addition of this store has had a positive

It is on the back of a properly drafted

PPA that bankers are prepared to lend the

capital to finance the plant, against the

security of the income stream that the

plant will generate by selling the electricity

supply to Eskom.

The income from the sale of electricity

is then used to pay off the capital and

interest incurred in the investment in the

plant.

Where smaller-scale embedded solar-

generation plants are installed by private

commercial enterprises for own use on

the customer’s own premises, the same

principles may be applied to finance the

cost of the project.

The owner of the premises concludes

a long-term (typically 20 year) PPA with

the plant owner/installer. The plant owner/

installer agrees to fund the plant and erect

it on the roof of the premises, with the

roof space is secured by way of a lease. The

plant is designed to provide a substantial

portion, but not all, of the energy needs of

the premises owner.

STOREWATCH

The new energy-efficient Makro Carnival.

The parties both agree that the revenue

stream generated under the PPA may be

assigned to a bank, as well as ownership

rights for the installed plant. This is to

provide security to the providers of

financing that the debt incurred in funding

the plant will be serviced.

The aim of the PPA is to regulate the

risks of the owner of the premises and the

owner/installer of the plant and to create

a long term binding income stream in

exchange for delivered energy.

Basic agreementsThe owner of the premises agrees to the following:

■ To buy all the electricity generated by the plant

■ The rate per kWh is lower than the existing charge to the customer

■ Billing occurs monthly and is verified by a back-up meter

■ The electricity rate will be escalated by a fixed percentage

■ After an agreed period, the escalation

rate will be the lower of the fixed

percentage or the Eskom year on year

increase

The owner/installer of the plant agrees:

■ To maintain the plant

■ To insure the plant and all risks

■ To ensure the plant generates the

guaranteed minimum electricity

■ To invest in the plant, thereby accepting

the risk of making the plant work


Gert Lourens, Makro operations director, Guy Hayward, Massmart CEO and Doug Jones, Makro CEO.

Miliswa (surname unknown) was the first customer at the new Makro Carnival.

For great energy savings on refrigeration

Together with Makro, we’ve put in more than 15 major energy saving features into Makro Carnival’s refrigeration. Many of them you will not find elsewhere. Each of them contributes to a more energy efficient store.These include high performance coils in the cabinets and ambient air defrosting of the freezer rooms, optimising the CO2 refrigeration plant. There’s also thicker 100% ecofriendly insulation throughout the store and low energy Anthony glass doors with humidity sensors controlling the energy input.

For the full story on all the advances in refrigeration energy savingCome to Insulated StructuresCall 011-462-2130Email [email protected]

Also, for a competitively priced, stylish range of well built, high efficiency self-contained refrigeration units look no further than the all new Integrale range from Insulated Structures

Makro CarnIval SetS energy benChMark

It is impossible to keep a lid on lies and

cheating. Today it is customers who hold

the power, and they will cruelly punish

companies if they think they have been

betrayed.

With a company’s bottom line being

linked to its reputation, it is essential to

face any allegations upfront. The key lesson

that businesses must learn is that when

a crisis transpires, it must be dealt with

quickly and effectively to be controlled.

Can businesses come back from a crisis?

Can they rely on the previous loyalty of

customers who loved the brand? Does

scandal supersede brand advocacy?

Steps that a business can take to recover

from a customer-engagement disaster:

1. Face the crisis head on: Don’t ignore

the situation and hope it goes away.

Businesses will make the situation

worse if they hide away from the crisis

and do not respond. Acknowledgment

of a mistake is important if you want

to fix your reputation. Immediately

after identifying the crisis, inform all

your employees of the situation and

assign each of them a task to solve

the problem.

By aki kalliaTakis

People are your biggest and

most powerful advertisers. No

matter what customers read,

hear or see on the internet, TV,

radio, newspapers or magazines,

customers still trust what others

say more than all your own

communication.

Any business, big or small, can fall victim

to a crisis that extends to a social-

media disaster. Your denials, posts on

your website and press releases will not

make a difference. By the time you react,

considerable reputational damage will have

been done and on social media you are

playing catch-up.

Iris Beukes and her grandson Tylo

were at the store in Mitchells Plain on a

Saturday when a security guard confronted

them over a Dairy Milk bar that the child

allegedly broke inside its packaging. The

event trended on social media for the

whole weekend and Pick n Pay had to work

very hard to control the damage.

It is also clear that from events such as

the VW emission scandal that companies

are no longer untouchable. You work in

a goldfish bowl and the whole world is

watching, so when mistakes occur, don’t

take your customers to court and don’t

look for excuses. Be open. Give a full

explanation. Demonstrate that lessons

have been learned. Apologise sincerely and

institute remedial action.

Although small business owners

are unlikely to find themselves facing

reputational disasters such as the VW

scandal, they can still end up in a sticky

mess. Consider KFC’s “hosed-down” chicken

debacle and the angry Cell C customer

who erected a billboard alongside a major

highway highlighting the company’s

“useless service”.

When a disaster does happen, the way

a business manages the situation will

determine if and how the business and the

brand recovers.

The danger of reputational damage

resulting from a crisis is now much greater

thanks to social media and the speed at

which negative comments can be shared.

2. Meaningful communication: An

organisation can recover, but it will

require vast amounts of meaningful

communication and the company

will need to take extreme measures

to regain the trust of customers. Be

clear on the corporate position and key

messaging. A business can minimise

the damage that has been caused,

and re-position itself as a company

that has admitted to a mistake and

is improving its standards. You can

openly acknowledge the issue on your

social-media channels and direct your

customers to your website for more

information. It is critical to constantly

update your customers during a crisis.

3. Social-media strategy: A business

needs a social-media strategy to

deal with negativity. Choose a social

media management system, such as

Tweetdeck or Hootsuite, to see the

latest tweets mentioning your business.

When a crisis occurs make sure to

monitor people’s emotions on social

media and act quickly and decisively

to let people know that you are in the

process of fixing the problem.


DELIGHT YOUR CUSTOMERS Once a gaffe is captured on social

media you are playing catch-up

customer apology before a simple

mistake spirals into a public-relations

disaster. Be responsive and act

quickly. Be sincere and show emotion,

customers want to see that you truly

care. Be clear and take ownership of the

mistake with no excuses.

5. Responding on social media: Choose

the most appropriate channel(s) to

communicate with your customers.

Research has revealed that the success

of online customer service depends

on the speed of a response, so make

sure you react quickly. Respond to your

customers that were directly affected

by the crisis first, the best option is

to take the communication offline.

Customers want to know that there is

a human on the other end so adopt a

human approach.

6. Preparation is key: Make sure you

have made a list of possible questions

the media may ask and prepare your

spokespeople so they are aware of your

key messages and know exactly what

to say.

7. Turn the situation around: If handled

right, it can win the business even more

respect than it had before the crisis.

An apology goes a long way.

8. Step up staff training: make sure

workers realise their behaviour is under

scrutiny and consistently improve

service levels. Ensure that individual

and team training needs assessments

are in place after a crisis in order to

develop expertise.

Originally appeared in Your Business Magazine


Aki Kalliatakis is the managing partner of The Leadership LaunchPad, a company dedicated to helping clients become more customer driven. He can be contacted at (011) 640 3958, or via the website at www.leadershiplaunchpad.co.za

2.5mm thick

metal housing

YOUR CUSTOMERS DESERVE QUALITY. YOU DESERVE DURABILITY.

You need to consider the following when

buying a trolley:Tried & tested structural

design & superior welding

Load-bearing wire base

Quality electro-

plating plus clear

lacquer coatingQuality UV-resistant plastic components

CG

SR

011

Contact [email protected]

for our electronic brochure

HEAD OFFICE - CAPE TOWN

Tel: +27 (21) 937 7123Fax: +27 (21) 937 [email protected]

DURBANTel: +27 (31) 709 2670Fax: +27 (31) 709 [email protected]

PORT ELIZABETHTel: +27 (41) 486 2538Fax: +27 (41) 486 [email protected]

JOHANNESBURGTel: +27 (11) 483 8541Fax: +27 (11) 339 5187

[email protected]

Correct wire diameter & spacing

High quality TENTE castors & wheels with precision bearings

Superior back gate design & fit

Cape Gate offers a complete range of the highest quality trolleys, to meet all retail requirements. Trolley Range for all store sizes: 85 L, 100 L, 130 L, 160 L, 180 L, 210 L & 235 L

100% SOUTH AFRICAN

The danger of reputational damage resulting from a crisis is now much greater thanks to social media and the speed at which negative comments can be shared. React quickly, be honest and apologise

While it is almost impossible to avoid

negative coverage on social media,

it is possible to limit the damage.

Whether something is reported on

social media, on a blog, or in the press,

it’s important that all key members

of the team areaware of the issue and

buy into any management strategy to

stop things from getting any worse.

A good strategy is to create an initial

response to the crisis, as well as actively

finding opportunities for more positive

coverage.

4. The art of a customer apology: It is vital

for companies to respond with a genuine

An equal number of responses were

targeted from each retailer. Mobile auditors

randomly selected visits, and scoring

ranged between favourable +1,

and unfavourable -1.

In each of the categories, the mobile

auditors were asked a number of questions.

The scores in each category were calculated

to an average score out of 21 points per

retailer per category, with a total maximum

score of 126 points (6 categories X 21

points per category). Scores are reported

as a percentage of the whole.


% per category Access Cleanliness Ambiance Navigation Assistance Tills Score

Spar 15,08 15,08 10,12 15,08 13,5 11,01 79,87

Woolworths 13,9 13,29 10,32 13,9 13,89 11,35 76,65

Food Lover’s Market 13,5 14,69 9,92 15,08 11,11 9,77 74,07

Pick n Pay 14,69 11,51 5,45 13,1 11,12 9,01 64,88

Checkers 13,9 12,49 2,18 13,29 8,74 8,73 59,33

Keeping customers waiting (seconds) Assistance Queues

Food Lover’s Market 52 69

Spar 53 77

Woolworths 45 120

Checkers 76 104

Pick n Pay 71 136

Serving the Western Cape

For more information, email us at: [email protected].

S&R / FIELD AGENT BAROMETER

Last month, Field Agent

published results of an audit,

using crowdsourcing to collect

information through smartphones

of service levels and standards

among retailers in Gauteng. This

month we have conducted the

same audit in the Western Cape

Province.

Crowdsourcing via smartphones provides

an unbiased, real-time understanding of

consumer shopping habits and frustrations,

assisting retailers to focus on relevant

operational issues and reinforce customer

loyalty and shopper satisfaction. Feedback

is collected through photos, videos, audio

timers and barcode scanners, capturing

consumer insights instantaneously.

The audit collected 105 responses.

Categories assessed were:

■ access and parking

■ cleanliness and hygiene

■ ambience

■ aisle navigation

■ staff assistance

■ checkout.

In terms of service standards in the eyes

of the consumer, Spar was the best (80%),

followed by Woolworths (77%), Food

Lovers Market / Fruit & Veg City (74%),

Pick n Pay (65%), and Checkers (59%). The

average time spent seeking assistance from

staff was 60 seconds, and in a queue at

checkout was 101 seconds.

In Gauteng, Woolworths was the best

(99), followed by Food Lovers Market /

Fruit & Veg City (97), Pick n Pay (95),

Spar (93), and Checkers (87). The average

time seeking assistance from staff was

50 seconds, and in a queue at checkout

was 81 seconds.

Stay cool – look after your fridges By HiPPo

zoUriDes

Suppliers of refrigeration systems are often

frustrated by retailers who do not maintain

equipment with the necessary care.

Whether it is leaving cold-room doors open

(most common complaint), or overloading

the display area of a cabinet, not washing

down the fridges regularly or blocking

the air flow of fans, contractors installing

refrigeration equipment in South Africa are

of the opinion that this lack of care applies

to both corporate and independent stores,

with very few exceptions.

“Everybody asks us for the most efficient

energy-saving configuration and most of us

deliver exactly that. However, we are not

present after the installation, except for

planned maintenance and the odd repair, to

control what takes place in many stores,”

says one frustrated contractor. Here are

some guidelines to minimise energy costs

and extend the lifespan of equipment:

■ Pay attention to location. Locating

refrigeration equipment in cool places

will reduce energy use significantly. Hot

locations, such as near cooking equipment

or heated display units, should be avoided.

■ For self-contained refrigeration

equipment it is important to provide good

ventilation around the condenser coils and

fans.

■ Manage anti-sweat heaters. Anti-

sweat heaters are commonly used to

reduce condensation on some types

of refrigeraters. The heaters use energy

directly and also contribute to the cooling

requirements of the system. The need

for anti-sweat heaters can be reduced or

eliminated by using higher insulation levels

and avoiding thermal connections between

the internal and external surfaces. However,

this may be difficult to achieve with some

types of display equipment. Determine if

anti-sweat heaters are really necessary. In

some climates, condensation may not form

at all or only during some parts of the year.

Consider turning anti-sweat heaters off

after hours. Timers may be useful to turn equipment on and off.

■ Lighting can be a major energy user in refrigeration systems. This is particularly the case for display units where products for sale must be attractively presented. On average, lighting uses around 20% of the energy needed in display units, but may be as high as 40% for some types of equipment. Not only does the lighting consume energy, it also generates heat, which adds to the cooling requirements of the refrigeration system. Use lower wattage globes or fewer fluorescent tubes or, better still, LED’s. Turn lighting off when not required. It may be necessary to install separate switching for lighting.

■ Consider using timers for display units and occupancy sensors for cool rooms. Regularly check that door-operated switches function properly.

■ Make the most of off-peak tariffs. Many businesses can operate equipment in


Locating refrigeration equipment in cool places will reduce energy use. Avoid hot locations, such as near cooking equipment or heated display units.

Love your fridges and they will love youInvesting in the best refrigeration equipment for your store is only the first step of a long journey. If you do not

constantly maintain the equipment, you will not get value for your money and the fridges will not be as efficient

as you want them to be.

REFRIGERATION ▲

in off-peak periods where the cost of electricity is lower. For example, timers may be used to utilise overnight off-peak rates to cool non-perishable products loaded.

■ Use less refrigeration space. Consider your refrigeration requirements and what refrigeration equipment is best suited for your business. Consider how much non-perishable product needs to be stored cold.

■ Only stock enough merchandise in refrigerators to meet the demand. Consider putting refrigerated goods into a smaller number of refrigerators. If cooling requirements are seasonal, consider shutting some refrigeration equipment down during low-use periods. Display and vending units need to have excellent product visibility and easy product access for customers. This usually results in increased energy consumption compared to general-purpose storage systems.

How to make your products and equipment

last longerEnough data is now available

to confirm that the use of

night blinds and/or doors/

covers on refrigeration

equipment extend the lifespan

of products, especially on

low-temperature fridges. Apart

from the reduction in energy

consumption of between

4% and 10% (dependent on

your configuration), blinds and

covers extend the shelf life of

products with between one and

two days for fresh meat and two

and four days for fresh produce.

The other benefit, which is more

difficult to quantify, is that

the back-room equipment and

cabinets do not have to work as

hard during certain times of the

day, translating in longer life for

the equipment.

■ Setting thermostats to unnecessarily low temperatures simply wastes energy and provides little benefit. Set thermostats to the maximum suitable for the product type. Be sure to regularly check temperatures to make sure that correct temperatures are maintained.

■ Load products efficiently. A signifi cant amount of energy can be used in cooling products down from the ambient temper-ature to the refrigerated temperature, especially high turnover products.

Storing goods in a cool area before loading will reduce the time needed to cool and therefore reduce energy consumption. Load goods into refrigerators when they are cool – avoid storing goods in hot areas such as in direct sun on a loading bay. Transfer pre-cooled products as quickly as possible from one refrigerated environment to another.

■ Regularly check and maintain door seals.


let the most energy efficient prize winning retail lighting solution boost sales in your store

Designed and manufactured in Italy, the Imoon, Total Retail LED solution offers:◆ Energy efficiency◆ Product specific lighting◆ Low maintenance◆ Lower overall project cost◆ Simple flexible design

The winner of The most energy efficient LED light solution for supermarkets 2015 in Luminaire choice for the Supermarket of the Future, Milan 2015 is alive and well and saving energy in South Africa while building store sales.

Phone 031-572-4199 Imoon Lighting (SA) Ltd 38 Burne Crescent, Durban North

Email: [email protected]

WInner…Happy customer Cameron Makensie of Parklane Superspar Pietermaritzburg KwaZulu-Natal. Consumption reduction 52 000 watts –12 500 watts

REFRIGERATION ▲

Enough data is now available to confirm that the use of night blinds and/or doors/covers on refrigeration equipment extend the lifespan of products, especially on low-temperature fridges.

Added benefits and income for you

Why sink your funds into refrigeration plant when all you really want is reliable cooling

and none of the hassle of owning it?Efficient, reliable refrigerating comes at a pretty penny and usually with no guarantees. But, it is something stores need to drive down costs.What you don’t need is the hassle of managing it and worrying if you’re being over-charged for repairs and maintenance.

So, is there a way to avoid sinking one’s funds into a refrigeration plant and still benefit from lower cost cooling? Energy Partners has a solution that lets you avoid purchasing the plant but still benefit from lower cost cooling by paying only for what you use on a monthly pay-as-you-go basis.

Some background Energy Partners specialise in managing energy assets on behalf of our clients to help them reduce the life cycle cost of energy. Our refrigeration engineers have developed a unique refrigeration meter that accurately measures the amount of cooling used by a store.

This has enabled us to supply you with cost effective cooling from a plant owned by us. Where previously service level agreements from refrigeration plant providers could only focus on achieving the required temperature, we now also guarantee plant efficiency.

There’s another bonus in this approach. All maintenance and repairs to our plant and the effort in managing it is our responsibility. For you there will be no unpleasant cost surprises from breakdowns and repairs. This highly incentivises us to design and install high quality, super-efficient plant and make sure it is managed and maintained to remain that way.

Who can use our plan?There are three basic scenarios…

◆ Your plant is aging and inefficient and needs replacement or an upgrade

◆ You’re building a new store and want highly efficient refrigeration plant but want to avoid purchasing it and the hassle of managing it

◆ You’ve purchased and had installed highly efficient refrigeration plant. Now you want to free up the capital and shed the problems of managing it and avoid the surprise costs of unforeseen breakdowns.

How it worksShould you wish to buy cooling from Energy Partners but would like to continue working with your existing service provider, no problem. We will work with them to design, install and maintain highly energy efficient plant for your store. Or, you can deal directly with us and our approved service providers. We pay for the plant and the continued maintenance through agreed service level contracts.

The first step is to establish the amount of cooling you need. In an existing store we’ll install our meter to measure your cooling use. In a new store we determine it using an accurate computer model.

Once we have established your cooling needs, we can calculate the unit pricing, Rand per Kilowatt Hour Refrigeration (R/kWhR), based on the cost of electricity and maintenance divided by the measured load. Once agreed, we conclude a cooling purchase agreement with you.

There is no initial cost for this. You only pay monthly once we start supplying you and just for the measured cooling you’ve used.

Since our pricing includes the cost of electricity and you are paying Eskom for it, we deduct the cost of the electricity used by the plant from our monthly invoice. The only variation in the unit cost will be in line with changes in the cost of electricity.

Our initial cooling purchase contract with you typically runs over a six year period. At the end of the period you can elect to buy the plant outright from us at its calculated market value or you can renew the contract for further terms but at lower cost.

If your plant needs to be expanded or upgraded during this time we will plan and implement this and recalculate a competitive cost per unit – ensuring that you always receive all the cooling you may need.

◆ At the end of each 5 or 6 year contract period we will refund you up to 10% of the cooling you bought in that period. An average 1 200m2 store would have bought between R15m and R30m worth of cooling in a fifteen year period.

◆ We provide you with visibility of the cooling load allowing you to monitor and reduce the cooling used through active energy management by doing things like ensuring cold room doors are kept closed, that your cabinets are cleaned and running efficiently (they remain your responsibility) and by improving the efficiency of your cabinets by using night blinds and other energy saving devices.

◆ You also have the option to include real time temperature monitoring through our tablet / smartphone app.

◆ At any time during the contract period you are able to buy the plant from us so you are not locked in to the agreement.

All the while you are buying efficient, reliable cooling at competitive prices without any unpredictable expenses.

Sound like a useful idea? Please visit our website or contact us for more information:

Call: 021-941-5140Dawie Kriel: 083-630-8243www.energypartners.co.za


■ Defrost evaporators regularly (if not on auto-defrost).

■ Defrost freezers when ice build-up reaches 5mm.

■ Keep condenser coils clean.

■ Check that equipment is running smoothly and quietly.

■ Check that the compressor is cycling on and off regularly.

■ For businesses with demand-based tariffs it may be possible to

turn refrigeration for non-perishable products off during peak-use

periods to reduce the overall peak demand.

■ Optimise location of compressors and condensers. Locating the

compressor and condenser in cool and well ventilated areas outside

the building will remove the heating effect and improve efficiency.

■ Self-contained refrigeration systems add heat to the building.

In most cases this heat must be removed by the airconditioning

system. This increases cooling costs and may also necessitate

a larger-capacity cooling system. In addition, the remaining

refrigeration equipment will provide a cooling effect, which will

reduce airconditioning requirements further.

One of the easiest ways to save energy is to simply use

less refrigeration. It is quite common for businesses to have

considerably more refrigeration space than is required.

Facts and figures:■ Commercial refrigeration systems in South Africa consume on

average 6 600 GWh of energy per year. This is enough to power

around 1,3 million homes.

■ Greenhouse gas emissions from commercial refrigeration

systems are around 6,6 million tonnes of carbon dioxide per

year. This is equal to the annual greenhouse gas emissions from

approximately 1,3 million cars.

■ Technical improvements to modern refrigeration systems have

the potential to reduce energy consumption by between 15% and

40%.

■ Improving simple operational practices requires minimal capital

investment and can often reduce energy costs by 15% or more.

■ Doing basic maintenance can reduce energy use. For example,

the glass doors used to provide product visibility have lower

insulation levels than solid doors. Similarly, the open nature of

multideck display units provides excellent access for customers, but

these units generally have higher energy consumption.

■ Is all the display and vending equipment is really necessary? Use

sales to determine how much of each product really needs to be

displayed. Also, consider putting products from several display units

into one display unit.

■ Display products effectively so that they are well laid out and

that glass doors are free of condensation and signage that will

reduce visibility. By doing this, customers will not need to search for

merchandise and allow cold air to escape.

■ Use energy-efficient cool rooms for storage and have a smaller

area for display refrigeration.

■ Locate open-display units away from draughty areas that can

drive out cold air and bring in warm air.

■ Locate open and glass-door display and vending units away from

direct sunlight or cooking equipment.

■ Install PVC strip curtains on open multideck display units.

REFRIGERATION ▲

Vento Plug-in multideck chiller.

AHTtechnology

ENERGIE-SPAR-KONZEPT

THE FLEXIBLE ALL-INCLUSIVE MULTIDECK.This revolutionary series of plug-in multidecks for meat and dairy products provides impressive flexibility, requires minimal installation and boasts sustainability in operation and investment.

The innovative concept of fully integrated refrige-ration technology minimizes system complexity as well as expenses for building alterations. Extremely versatile, for open use or equipped with glass doors, VENTO is today’s efficient multideck chiller solution!

Multilayer Trading 867 (Pty) Ltd The Grove Business Estate Unit B11, B14 & B15 Ou Paardevlei Rd, The Interchange Somerset West, 7130

Phone +27 (0) 21 851-9616 Fax +27 (0) 86 233 8145 Email [email protected] www.aht.at

Vento Hybrid

aht_Anz_Vento_90x270_EN_MAI16_def.indd 1 25.05.16 16:59

One South African cabinet manufacturer

has already produced HEOS-specification

cabinets.

With three suppliers in the market, one

can expect the technology to prove a viable

option for stores in any situation.

Without advocating any one supplier,

here are some of the benefits and features

of closed-water-loop self- contained

cabinets that they discussed with us:

■ According to Carel South Africa’s

managing director Rodney Taylor, the

Italian engineers who designed its HEOS

self-contained system reckon that it wins

against remote refrigeration for stores with

up to 45 cabinets. After that, the high-

specification multiplex system apparently

more than holds its own.

■ The operating efficiency of high-

specification self-contained cabinets are

claimed to be 15% to 25 % better than

remote cabinets driven by multiplex

systems. One reason for this is that remote

systems have to run at -12⁰C to power a

medium-temperature cabinet where self-

contained cabinets can do this at -5⁰C.

■ Omega’s Michael Breckle says the

installed cost of closed-water-loop cabinets

is about 10% lower than remote multiplex

systems.

There’s no need for expensive trenching

and tubing. The hoses used to take the

hot water out of the store and the cooled

water back to the cabinets is relatively

inexpensive and easy to install and run

through the ceiling. This makes it quite

easy to either move the cabinets around

the store or to add cabinets to a store.

■ The cabinets carry around 3,5kg of

gas, so there is a very limited loss if leaks

occur in any one of cylinders. Re-gassing a

remote multiplex system is very expensive.

Their extensive experience in both

refrigeration contracting to supermarkets

and in cabinet design and building

enabled them to see a number of other

improvements that would aid the viability

of their concept, especially in Africa. About

five years ago, their company launched

the first closed-water-loop self-contained

cabinets on the African market.

Around the same time the Austrian

self-contained cabinetmaker AHT also

demonstrated a closed-water-loop

system for self-contained units at the

2011 Euroshop shopfittting exhibition in

Dusseldorf, Germany.

More recently, international Italian

refrigeration-equipment manufacturer

Carel developed a specification for a high-

efficiency self-contained closed-water-loop

operating system, which they call HEOS

based on the refrigeration equipment

they manufacture. The specification and

technology are open source and it is

available to all cabinet manufacturers.

The first display fridges in stores were four-foot self-contained freezers. They were put in with the introduction of frozen foods and were mainly supplied by the frozen-food companies.

That was a long while ago.As supermarkets developed and the

frozen and chilled departments grew and large-scale refrigeration provided by the retailer became the norm, remote cabinets were introduced to the market.

That is until fairly recently when more efficient higher-specification self-contained cabinets that could compete with remote cabinets on efficiency and installed cost came onto the market. But there were a couple of drawbacks. In hot climates like ours, the principle one was the heat they generated. This either made the store hot or made the airconditioning system work overtime. In some cases, they were also noticeably noisy.

But one big disadvantage that self-contained cabinet manufacturers did overcome was the bulky look and loss of display space that the size of the refrigeration unit had demanded. They did this through more efficient cabinet design and plant and equipment miniturisation to the point where self-contained cabinets are built that look the same as the sleek lines of today’s remote cabinets.

Around seven years ago, Michael Breckle and Derek Higgs conceived the idea to remove the heat produced by self-contained cabinets via a water jacket on the condensor and pipe it out of the store with plastic hoses through a closed-loop cooling unit.


Contact Raymond082 600 5236

(011) 478-2255 [email protected]

www.polarafrica.co.za

Why buy when you can rent … and possibly at no cost to you?

Night Blinds Isle case blinds

Freezer counter blinds

Stress tested to potentially last 10 years

REFRIGERATION

Self-contained cabinets are now as sleek and space-efficient as remote ones.

The self-contained option▲

Great South African

Chicken Every Day!

www.astralpoultry.comJohannesburg 011 206 0600 Cape Town 021 505 8000 Durban 031 563 3661

Designed to work. Built to last.

CALL EUROCOOL TODAY for more information!

Lightweight size, heavyweight performance. Benefit from the cost-effective packaged solution!

SUPERIOR PRODUCTSOptyma™ Slim Pack

Optyma™ Slim PackCompactLight weight. Space saving design. Easy to handle and to install

Randburg: +27 (11) 791 1540 / Booysens +27 (11) 681 3933 Cape Town: +27 (21) 510 5270 / Durban: +27 (31) 577 5093Middleburg +27 (13) 244 1781/[email protected] / www.eurocool.co.za

Eurocool_93x190mm_PrintReady_24-05-16.indd 1 2016/05/25 9:24 AM

example, the average cabinet temperature

deviation over a 24-hour period is around

4⁰C for remote cabinets, but only 1⁰C for

self-contained cabinets running variable-

speed compressors. The reason for this

is that while modern multiplex systems

do have variable-speed compressors,

the cabinets still work on a start-stop

basis, stopping as the cabinets reach the

set temperature and only starting again

CoolCheck from Cape Town have been

appointed as its local representative. This

company, owned by Kevin Schlemmer

and Danie van Zyl, will be able to use its

extensive knowledge of the refrigeration

market to implement the new diagnostic

tool to save retailers and others most of

the money wasted in excessive energy

usage and expensive repairs or equipment

replacement.

Innovative approach – how it worksThe system uses ten sensors that are

attached at strategic points around the

refrigeration system. It measures seven

temperature points, two pressure points

■ Self-contained systems are low

maintenance and reliable.

Nic Visser of AHT Africa notes that the

cabinets they have supplied over the past

four years have experienced a failure rate

of less than 1%. They also need very little

service. Some of them need no service

at all, though they like to check and clean

the multi-deck upright units annually.

The reliability and low maintenance of

the cabinets, he says, substantially reduces

the cost of ownership.

■ There’s safety in numbers for stores

fitted with self-contained cabinets.

In refrigeration technical speak, the

refrigeration capacity retained after a

breakdown is called redundancy. With the

loss of one cabinet in a self-contained

store you have a redundancy of around

96%. A breakdown in a store driven by

two multiplex units has a 50% potential

redundancy based on one breaking down,

whereas a store driven by a single multiplex

plant has 0% redundancy.

Breckle says their self-contained

system’s refrigeration plant is fitted into

a slim package that slides in under the

cabinet and requires a few quick, easy-

to-make connections to install. Two sizes

of refrigeration packs will cover all the

cabinets in a store. By keeping just two

spares in a store and training the store’s

staff to replace them, they can keep all the

fridges running and avoid stock losses even

if technicians are days away.

■Another advantage of self-contained is

the reduced time to install the system. For

after the cabinet temperature rises. With

self-contained cabinets, variable-speed

compressors are continuously adjusting

their output according to cabinet

temperature.

What’s the benefit?Breckle says he has customers that claim

an extra two days shelf life on fresh meat,

saving on waste and reworking product.

and the active power that goes through the

system. These include:

■ Temperature and pressure at entrance of

compressor.

■ Temperature and pressure at compressor

exit.

■ Liquid refrigerant before expansion

device.

■Active electrical power

A technician/engineer can hook up the

equipment in between 20 and 30 minutes.

From the information gathered the

key operating parameters that pinpoint

the system’s actual performance can be

determined independently of any supplier

data.


REFRIGERATION

Latest diagnostic technology now in SA

The Swedish company ClimaCheck has recently introduced its technology

that will assist retailers of all sizes to allocate the correct resources to

maintaining its refrigeration plants and equipment in South Africa.

▲

THE DISTINCTIVE VALUE OF CUSTOMISATION

stud

iove

rde

W O R L D

W O R L D

Simple, efficient and elegant. These are the three key characteristics of the Venezia 2 refrigerated cabinet, in which the mechanical parts have been reduced in size to accommodate larger glass panels and offer a clearer view of the quality products on display. A wide range of customisation options plus minimalist design permit the creation of evolved layouts in all retail contexts, to the benefit of practicality and functionality.

Venezia 2

The power of a global enterprise

Style, Taste, Tradition and Exclusive Quality: the world embraces the “Made in Italy” trademark.

SOUTH AFRICA www.arneg.co.za

NOW PRESENT IN SOUTH AFRICA

Arneg Group has 20 production plants and 12 Service companies in 25 different countries around the globe. With a turnover in excess of €550 million, it boasts a comprehensive product range that includes cabinets, racks (compressor systems), checkouts, shelving, cold rooms, doors, plug-ins and related services. Our Italian character is not just a label, but an expression of a wider, more complex concept that embraces heart and mind, instinct and design, national character and individual talent.

Arneg has made this Italian character its strength, its crowning achievement and the core of each of its creations. So much so, Arneg wants to export it globally.

Office 2, ground floor,

Liesbeek House, River Park,

Glouchester Road,

Mowbray, Cape Town

YOUR NATURALLY INNOVATIVE PARTNER FOR RETAIL SOLUTIONS


In total, ten measurements are looked at

and at the heart of the performance analyser

is the energy balance over the compressor

and a series of algorithms, based on the

thermodynamic properties and operating

characteristics of the refrigerant in use.

Practical benefitsAll data required for a full evaluation of the

system is available as soon as the sensors are

connected, mostly without having to stop

the system. With the information provided, engineers can identify

plant performance problems, including among many others:

■ refrigerant shortage or over-charge

■ incorrect superheat settings

■ compressor damage or wear

■ fouling of heat exchangers

■ oil logging in the condenser/evaporator

■ fan/pumps underperformance, flow problems on secondary

media (air/water/brine)

■ control problems

The system identifies irregularities in compressor and component

performance that could result in future impairment of performance

– or even plant breakdown, enabling pre-emptive maintenance and

energy optimisation.

A test was recently run in a SPAR shop in this country and

several system problems were identified that have very serious

implications for the retailer:

Reduced equipment life span and system reliabilityShort-cycling

Quote from the report: Compressor 1 has very low efficiency and

Compressor 2 has a slightly decreased performance. System is short

cycling with many starts and short operating times which likely to

result in compressor issues. As more than one compressor shows

decreased performance oil quality should be validated with a

laboratory test after measurement.

■ Potential liquid flood back (too low superheat during night time).

■ Incorrect liquid injection set-up.

■ Oil return problems.

Reduced efficiency

■ Suction pressure too low and unstable.

■ Compressor 3 faulty/inefficient (imminent failure).

Quote from the report: Compressor 3 is showing clear signs of

low performance:

■ Efficiency decreases every time Compressor 3 starts

■ Compressor 3 requires more power at same condition

e.g. it is not a question of lack of liquid injection.

■ Time to bring down evaporation is longer for Compressor 3.

■ Incorrect liquid injection set-up.

■ Reduced system COP

ConclusionIn essence, refrigeration maintenance has become very

sophisticated and cannot be left to casual maintenance technicians,

especially of the “old school”. Assessments such as the above

are becoming vital so that every rand spent on optimising one’s

refrigeration installation is not wasted.

REFRIGERATION

Kevin SchlemmerCommercial refrigeration systems in South Africa consume on average 6 600 GWh of energy per year, enough to power ± 1,3 million homes.

Always on! New Hybrid (Eutectic) cooler runs 24 hours on less than 6 hours of electricityThat’s it. Even without power for 16 hours, this new cooler from Frigoglass keeps product real cold and good to drink with a less than 3°C rise in product temperature. It also stays lit and open for business.

And when the power is back on it barely sips it. It is so efficient that it will take 200 cans of beverage from 25°C ambient down to 4°C in just one and a half hours.

This is all thanks to a radical new engineering approach that uses a bank of cold to counter load shedding, super efficient insulation and battery backup to keep the LED light on and the cold air circulating.

The new hybrid cooler sees a rise in product temperature of just a few degrees (blue line) compared to a conventional cooler (red line). When the electricity comes back on it pulls the product temperature back down very quickly compared to conventional coolers.

The new hybrid cooler

brands perfectly.

email: sales[email protected]

For full details contact Frigoglass South africa (Pty) ltd

Phone: +27 11 248 3000Fax: +27 11 248 3004

The result: it keeps selling and avoids product loss on perishables

such as dairy. And it’s good for your carbon footprint with its natural hydrocarbon (R290) and CO2 (R744) refrigerants.

0 10 20 30

25

20

15

°C

10

5

0

Hybrid

Standard

Hours

Start of power failure

Power back on


Take your energy savings drive to the next level with Omega high efficiency cabinets

…put money in your pocket

Much time and paper is devoted to

the choice between variable speed drive

multiplex and conventional multiplex

systems, to all the new refrigerants coming

onto the market vs. CO2 and the use of

electronic monitoring and control systems.

There’s no doubt that the right choices

here can make a definite contribution to

lower energy costs.

But think of this. Demand for

refrigeration comes from the cabinets.

The more efficient the cabinet, the

less refrigeration is required from the

refrigeration plant.

Put this into perspective. Omega

cabinets, whether self-contained or remote,

8’ or 12’ long, whether frozen or chilled,

all operate on less than 2Kw of power

consumption*

For example, the specifications for most

other cabinets will require more Kw input

(electricity consumption) because they

require a larger amount of refrigeration

output (refrigeration requirement to reach

desired temperature), in some cases up to

6.5 kw at -7 suction temperature. Omega

upright requires 1.89Kw input and only

requires 4.66Kw of refrigeration capacity

output for a lofty. The same theory applies

to all other modes. .

By contrast the spec for most other

cabinets on the market.

Omega’s cabinet efficiency comes

from its developmental history. Omega

Refrigeration (Pty) Ltd was founded on a

new refrigeration concept – the closed

water loop self-contained cabinet.

To keep the self-contained cabinet

competitive with modern remote cabinets

in looks, dimensions and display space

we had to keep the power pack small.

And, to make a small compressor work,

the cabinet had to be far more efficient.

Initially superior insulation was used and as

development progressed, other areas such

as active air flow management was built in

to minimize air spillage. We also designed

and patented special high efficiency coil

fins and use programmable electronic

control fans made for high performance

cabinets.

Today all Omega cabinets whether

powered by remote, simplex or multiplex

refrigeration, conventional self-

contained or our “advanced Omega self-

contained water loop” system, benefit

from this innovative cabinet design. So,

regardless of the refrigeration system that

powers them, the shopper is only aware

of a sleek, uniform and branded cabinet

frontage—allowing you to mix and match

your current or future refrigeration systems

without a cost penalty.

Omega Cabinets come in standard

unit lengths of 4’,6’, 8 and 12’ – making

planning, ordering, installation and service

access that much easier – saving time and

money, especially in the build and kitting

out phase where the pressure is on to open

the doors on time.

*Proven and citable independent laboratory verifications.

The Omega advanced self-contained closed water loop system advantageYou’ll be hearing more and more about

this refrigeration format as it gains

traction in the market going ahead.

We started working on the concept some

seven years ago and launched it 5 years

ago in what we believe is a world first.

Certainly we were the first to launch the

concept in Africa. Now with more than

2 000 cabinets installed from the Congo

(DRC) through to Cape Town and in major

and flagship supermarket outlets in South

Africa’s cities we have the experience and

know more than a thing or two about the

system, its efficiencies, performance and

its installation.

First and possibly foremost the system

is designed to overcome one of the major

disadvantages to the widespread use of

self-contained cabinets in supermarkets,

especially in hot climates – the heat they

pump into the store.

Another big advantage of self-contained

compared with remote refrigerated

cabinets is that they eliminate the need

for hundreds and hundreds of meters of

expensive trenching and tubing, skilled

technicians and a dedicated room for the

multiplex plant. This makes the set-up less

expensive, less complex and much faster.

Self-contained water cooled cabinets

are inherently more efficient than remote

cabinets because no energy is required to

push the refrigerant to the cabinet and suck

the gas back.

Add to this the fact that Omega

advanced self-contained water loop

cabinets are fitted with all the modern

electronic valves, controls and variable

speed compressors that make for a highly

efficient cabinet that’ll drive your energy

efficiency.

With all the wonderful new energy saving technologies for refrigeration plant coming onto the market it’s little wonder that cabinet efficiency is seldom taken into account.

On average the Omega self-

contained water loop system is 25%

more energy efficient than other

high spec conventional systems.


Take your energy savings drive to the next level with Omega high efficiency cabinets

…put money in your pocket Any retailer serious about their business should note the difference that the Omega Closed Water Loop System can make to their business – real bottom line stuffChris Christodoulou – 5 Star Superspar / Secunda Superspar

Omega has brought a dimension to refrigeration technology, cost cutting and energy saving that I have not seen in decades – real cutting edgeAyis Kyriacou – Nina Park Spar / Pretoria North Spar / Hercules Spar

The cost savings with Omega go beyond

saving energy.

■ The installed cost of an Omega self-

contained closed water loop refrigeration

is about 10% less than a comparable

multiplex remote cabinet set-up.

■ The Omega system is designed for

easy maintenance with a swap out

compressor unit that slides in under

the cabinet. Around 75% of all Omega

cabinets in a store will use the 2.2Kw unit

and the balance a smaller one. This means

that with just two swap out units on hand

store staff can easily keep all the cabinets

running and prevent stock losses.

This feature is especially useful for stores

in remote locations far from service

centres.

■ The total refrigerant load in a self-

contained store is around just one

third of that of a multiplex powered

remote cabinet store. Not only does this

contribute to a lower initial installed cost

it also dramatically reduces both the

cost of fixing gas leaks and the cost of

replacing the gas.

A store with 67 remote cabinets would

typically have a total of around 900 kg

of gas. With the cost of gas running up

to R500/kg that’s a lot of gas and money

required to replace a gas leak in a single or

double multiplex system. With less than

3.8 Kg in an Omega self-contained cabinet

there’s a whole lot less to lose. And the

chances of a gas leak are much lower due

the fact that the Omega self-contained

power pack is built and gassed in the

controlled environment of a production line

and not on site.

■ Then there’s one more thing to

consider. Omega self-contained cabinets

are driven by variable speed compressors.

These are always on and constantly adjust

the speed to the refrigeration demand.

Not only does this eliminate the noise and

energy drain of the stop-start operation

of fixed speed compressors but it also

restricts the average temperature variation

in the cabinet over a 24 hour period to

less than 1⁰C. Compare this to multiplex

and simplex driven remote cabinets where

the stop / start nature of their operation

produces a 4 ⁰C temperature variation.

What’s the cost impact of this? Take our

meat cabinets for example. They are set to

operate at 1⁰C. You’ll get two more days

shelf life on your meat packs. That will save

you a heap from reworking good steak into

low margin boerewors.

Call us. Whatever your choices of refrigeration system retailers and contractors, call us to find out how Omega can help you save on both energy and maintenance and build your sales:

Mike Breckle 083 290 2565Daine Groenewald 072 113 4695Sales department – Meyersdal 011 867 1009/1058/1094

Email: [email protected]

figures show that there are about 243

million visits [per year] to grocers that have

an HMR programme.

“Over the last six or seven years, we have

seen an increase of about 17% in visits to

HMR departments. If you consider that

quick-service restaurants (QSRs) and full-

A good home meal replacement department can be turned into a growth point for any supermarket and many South African supermarkets are exploiting this opportunity.

Woolworths offers an eat-in-for-R150

promotion regularly, offering a variety of

menus, consisting of Woolworths products,

with ideas on how four people can eat at

home for less than R150.

The new Food Lovers Eatery in the city

centre of Cape Town has taken home meal

replacement offerings to a new level. Unlike

a conventional Food Lovers Market outlet,

this store does not stock any traditional

grocery or household items, but is focused

on convenient servings for immediate

consumption or to take home.

In Canada, the market for home

replacement meals is also growing at

a whopping 17% per year.

According to Mark Dempsey, director

of the NPD Group, a market research

company in Toronto, Canada, the latest

service restaurants (FSRs) have been

pretty much flat and are expected to

remain flat over the next couple of years,

then, as a general segment, HMR is

expected to be a shining star. This market

segment has increased dramatically and

is showing no signs of slowing,” he says.


PUNJAB CHICKPEASINGREDIENTS4 garlic cloves, finely chopped

1 teaspoon (5 ml) cumin seeds

1 small onion, chopped

1 tablespoon fresh ginger, grated

2 tablespoons (30 ml) olive oil

2 bay leaves

1 cinnamon stick

2 chilli peppers sliced

2 teaspoons (10 ml) coriander powder

2 teaspoons (10 ml) curry powder

1 cup (250 mL) vegetable broth

1½ cups cooked Pouyoukas dried chickpeas

Sea salt and freshly ground black pepper,

to taste

Chopped fresh coriander, to decorate

METHOD■ In a large pot, sauté garlic, onion and ginger in oil for 2 minutes, stirring constantly.

■ Add vegetable broth, chickpeas, bay leaves, hot peppers, cinnamon stick, coriander

powder and curry. Mix well.

■ Add salt and pepper to taste. Simmer for 10 minutes while stirring. Remove from heat

to allow to settle.

■ Serve with yoghurt and fresh naan and garnish with coriander.

RECIPES FOR YOUR STORE

The shift to home meal replacement

For restaurant owners, the investment in a great atmosphere and innovative menu will pay off.

By Tarina CoeTzee

While HMR has been on the food-service

industry’s radar for more than a decade,

the difference today is in the number of

grocery stores offering HMR options, as

well as the increasing quality and range of

items. It’s no longer the standard rotisserie

chicken, potato wedges and coleslaw. At

popular grocery chains, the customer can

now find various innovative dishes.

Loblaws, a supermarket chain with

over 2 000 stores in Canada, launched its

from-our-chefs programme in 2012 to

bring restaurant-quality meals to the HMR

counter. While Loblaws won’t share sales

numbers, it says customers have responded

well to the programme.

“Since the launch in 2012, we have

expanded the programme to stores across

the country,” the company says.

But should traditional foodservice

operators be worried about this new face of

grocery HMR? Perhaps, but not necessarily.

Although Loblaws and its counterparts

are striving to provide higher quality and

greater menu innovation, Dempsey says

the overall consumer perception is that

they haven’t quite hit the mark.

“One of the areas HMR is the most

challenged is satisfaction with the menu.

While consumers are seeing good value

in terms of time and money savings, only

27% of consumers say they are satisfied

with the menu,” says Dempsey. “So, FSR

or QSR operators can win with their menu

options,” he says.

Toronto’s Colette Grand Café, for

instance, offers innovative take-away

options that customers can grab to eat

at lunch (there’s a lovely park across the

street) or take it home to eat at night.

The owners of the Café do not view

grocery HMR as competition, because it

offers something completely different.

“People come to our restaurant, because

they want the entire package. People that

buy something to take home or supplement

their own cooking, and those that look

for a dining experience are com pletely

different. The rise of grocery HMR is not

going to affect the numbers at restaurants.

If you create a captivating enough

experience – whether it’s the service, the

atmosphere, the food or the range of

beverages – you don’t need to worry.”

NPD’s Dempsey concurs: “When it comes

down to it, even the nicest HMR areas are

still in a supermarket; so when people want

to go out for that family meal, they’re still

going to favour FSR over HMR.”

Rocket Bakery & Fresh Food in St John’s

consists of a coffee shop, bakery, fresh-food

outlet, as well as a catering and events

space. The restaurant offers soups, salads,

sandwiches made on fresh bread, fish cakes

and quiches that can be taken home.

“We’re finding people want more of that

take-home, ready-to-eat meal,” the owner

says. “What we offer has got healthier and

we make everything from scratch with

quality ingredients. The times where you

just grabbed fast food because you have

to get to soccer practice and the kids need

to eat something, have passed. If you’re

spend ing on some thing convenient, people

want it to be nutritious.”

Overall, HMR is one more market

restaurateurs should monitor, while keeping

customers engaged with meals-to-go and

unique restaurant experiences.

With extra information from www.foodserviceandhospitality.com.


Pulse.This is a

Make healthy easy.

Explore recipes at www.pulsepledge.com

PEAS BEANS LENTILS CHICKPEAS

PULSES

THE LITTLE SUPERFOOD GROUPTHAT DELIVERS BIG.

How is it possible that something that costs as little as R1,50 a serving

delivers 2x the protein of quinoa? And quadruple the flavour? Pulses

can. They’re kind of miraculous.

Supported by

PeppadewSA @Peppadew_za

www.peppadew.com

The Peppadew® range of atchars, available in four variants, Vegetable Atchar with Piquanté Peppers (in mild and hot) and Mango Atchar with Piquanté Peppers (in mild and hot) not only adds a refreshing sharpness to every dish, they also add exotic new flavour

dimensions…. Exactly what adventurous South African palates want.

IT’S WHAT YOUR SHOPPERS WANT

For enquiries please contact: Kian Macrae, National Sales Executive, on 011 516 4200 or [email protected]

Certifications include FSSC 22 000 FDA Registration Orthodox Union Halaal

And, as one would expect from the market leader in the pickle category, the atchar range highlights the Peppadew® difference:

1. Raw material is procured from GlobalGap farmers only.2. The range is fully pasteurized and has less oil than competitors at 70g per 400g3. The range has a lower than the norm sodium level at 1100mg/100g4. The range offers a unique flavour profile with the addition of Piquanté Peppers.5. The mango atchar is pip free and non-fibrous providing a better texture and easier eating.

We know all South Africans love biltong, bobotie and vetkoek, that’s why we’re betting that they also love atchar, especially when it carries the Peppadew® brand name!

On offer is four variants: Vegetable Atchar with Piquanté Peppers (mild and hot) or Mango Atchar with Piquanté Peppers (mild and hot); Try them today if if you’d like to add a refreshing sharpness and exotic flavour to any one of your favourite dishes.

No meal is complete without an array of Peppadew® Atchars. They’re also brilliant with samoosas and Indian breads, from naan and paratha to the dramatic dosa!


Recipe Yield: ½ Bain marie insert

Equipment: Pot & stove

Prep Time: 20 Minutes

Serving/Portion Size: 8

Cooking Temp: High

Cook/Set Time: 15 Minutes

Qty Unit INGREDIENTS 400 g Onions, sliced

225 g Button mushrooms, sliced

50 g Green peppers, sliced

150 g Red peppers, sliced

75 g Marvello Multipurpose

1 kg Chicken breast, sliced

5 g Robertsons Chicken Spice

VELOUTÉ Qty Unit INGREDIENTS 20 g Knorr Chicken Stock Granules

1 l Water, boiling

100 g Marvello Multipurpose

100 g Flour

100 ml Meadowland Classique

METHOD1. In a large pot, add the Marvello Multipurpose and fry the

onions until soft. Add the chicken strips and Robertsons

Chicken Spice and sauté until fully cooked.Then add the

mushrooms and peppers and cook for a further 2 minutes.

2. Keep warm.

VELOUTÉ3. In a pot, bring the Marvello Multipurpose to the boil, then add

the flour and cook for two minutes.

4. Dissolve the Knorr Chicken Stock Granules in the boiling water.

5. Add the hot chicken stock a little at a time until all the stock

has been added, whisking continuously.

6. Add the velouté to the chicken, onions, peppers and

mushrooms, then add the Meadowland Classique. Adjust

seasoning.

SERVING SUGGESTIONServe with cooked rice.

RECIPES FOR THE STORE

CHICKEN á LA KING

C

M

Y

CM

MY

CY

CMY

K

MAY Supermarket & Retailer Marvello AD CTP.pdf 1 5/11/16 9:00 AM

PREPARATION INSTRUCTIONSFOR PRESSURE FRYER

1. Place drumsticks into water.

2. Remove and roll chicken drumsticks into breading.

3. Cook in pressure fryer at 155°C for

9 minutes.

FOR A THICKER COATINGRoll drumsticks in breading before carrying out

the simple 3 step process.

PREPARATION INSTRUCTIONSFOR CHIP FRYER1. Place drumsticks into water.

2. Remove and roll chicken drumsticks into breading.

3. Deep fry at 160°C for ±13 minutes.

RECIPES FOR THE STORE

CHICKEN BREADINGSuitable for coating fish, calamari, chicken strips, livers, gizzards and mushroomsAvailable in original and spicy variants


C

M

Y

CM

MY

CY

CMY

K

37593 Chicken Breading Mag Ad R2 CTP.pdf 1 5/11/16 9:50 AM

RECIPES FOR THE STORE 100 – 150 g Imbo white kidney beans or Crossbow red kidney beans

30 ml (2 tbsp) olive oil

500 g oven roast vegetable mix, cut into bite-sized pieces (such as peppers, butternut, baby marrow, aubergine)

1 red onion, peeled and cubed

5 ml (1 tsp) garlic, crushed

5 ml mixed dried herbs

50 g sundried tomatoes, diced

125 ml (½ cup) tomato pureé

125 ml (½ cup) vegetable stock

salt and milled black pepper

FOR THE TOPPING400 g each of sweet potatoes and potatoes

50 g crème fraiche

20 g butter

salt and milled black pepper

METHOD1. Cook the Imbo beans according to

the instructions on the packet. Drain and set aside.

2. Preheat the oven to 190°C.

3. Place the oil, roasting vegetables, onion, garlic and mixed herbs in a roasting pan and toss to combine. Roast in the oven for 20 – 25 minutes or until the vegetables are tender.

4. Stir in the sundried tomatoes, tomato pureé, stock and the precooked Imbo kidney beans. Season with salt and pepper. Transfer the vegetable mixture to a 1.2 litre baking dish.

Meanwhile, cook the potatoes and sweet potatoes in boiling salted water until tender. Drain and mash. Stir in the crème fraiche, butter, salt and pepper.

5. Spread over the bean mixture and roughen the top with a fork. Bake for 15 – 20 minutes or until bubbling and golden brown.

Recipe & pic: Plum Magazine

DELICIOUS BEAN COTTAGE PIE Serves 4–6

But it seems to be worth it.

Armed robberies and Eskom’s load-

shedding have cost Shoprite Holdings,

South Africa’s largest supermarket group,

an additional R3 billion in operating costs

in the previous financial year. These costs

represent more than 2,5% of revenue and

13% of trading profits.

Shoprite chief executive Whitey Basson

said the group’s cost for security during the

financial year was more than R1 billion.

But, says Phillips, his company will

take the risk for you if you invest in its

holistic end-to-end cash-management and

payment solution. From the moment the

cash is deposited into the Cash Connect

Today there is more cash in circulation than

every before.

And the ever present possibility of an

armed robbery is firmly entrenched in the

minds of supermarket owners. Currently,

there are 52 armed business robberies and

204 business burglaries, including device

bombings, in South African every day.

Criminals and organised crime syndicates

used to target banks, cash-in-transit

vehicles, ATMs and retail stores by means

of armed robberies to get cash. But since

2015, there was a significant increase in

the number of cash-deposit machines

being bombed.

According to Richard Phillips, joint CEO

of Cash Connect Management Solutions,

the manual control and handling of cash is

one of the most expensive and inefficient

processes in the business.

The process of manually handling cash

from the till through to the bank entails as

many as five separate counts of the same

cash as various levels of supervision are

required to check and reconcile the value

as it passes through the system. Counting

cash is a laborious, menial and repetitive

task prone to inaccuracy and inefficiency.

Automated cash-management

technology and processes will increase

efficiency, speed and accuracy and reduce

costs.

Cash Connect’s cash vault technology,

which is built to SABS Category 4

standards, has been vigorously tested by

determined and organised criminals using

every kind of tool from explosives to

sledge hammers and proves of to be highly

resistant to attacks.

These days, businesses across South

Africa have to improve on efficiency and

security – this often calls for a major

investment that can have a material impact

on the profitability of the business.

cash vault to the moment it’s transferred to the cash-in-transit vehicle and then to the bank, your cash is insured 100%.

Hannes Venter, managing director of Gunnebo South Africa, says staff errors and the resulting human-resources processes, the cost of staff managing the cash-handling processes and the number of counterfeit notes in circulation are also contributing to more and more retailers automating the cash-handling process.

“We all agree that the safest way of dealing with cash in a retail environment is simply not to touch it,” he says.

And with the Gunnebo SafePay closed cash-handling system, nobody will ever have to touch your cash. This ergonomic and user-friendly solution addresses the issues of cash differences, the authentication of banknotes, time-consuming cash up procedures, and also dissuades criminals. An open and interactive retail environment is achieved and staff is able to focus on customer service and selling, instead of having to worry about balancing their tills.

The SafePay closed cash-handling system is a checkout payment solution that combines note and coin-recycling units. Items are scanned and customers feed notes or drop coins into the respective units to pay and are then issued with the correct change. At no time during this process does the cashier handle money, unless the retailer prefers a cashier-operated system, which is also available.


▲ATMS AND CASH-HANDLING

Richard Phillips, joint CEO of Cash Connect Management Solutions

The SafePay closed cash-handling system demonstrated at the Cash Handling Show Africa 2016.

Counting cashThe real cost of handling cash is becoming

better understood and has lead to the

increased acceptance of costly automated

cash-handling systems that integrate

the flow of money from till point to

cash-in-transit (CIT) service providers

and the banks themselves.

By Tarina CoeTzee

Full range of cash handling solutions for banks, retail and CIT

Gunnebo is just the right partner to help you improve security, cost-efficiency and

productivity of the cash cycle and process. Our managed monitoring service creates a

platform that allows data stream between retail, bank and cash-in-transit company.

Gunnebo’s total cash handling offering includes back office systems, recycling machines,

simple deposit units, software, service and integration solutions to make the complete

cash handling process safer.

Contacts:

Email: [email protected] - T: +27 (0)11 878 2300

the cash for pick-up. The cash is never

exposed during this process, not even

during a refilling or maintenance service.

Online control and reporting through

SafePay Cash Control software ensures

accurate and live reporting and can be

customised to any point of sale software.

When the cash is transferred to the back

office, it is done so in sealed, ink-protected

cassettes and has already been counted

and checked. When docked in the transfer

unit in the back office, these cassettes

empty into an ink-protected security case.

A cash-in-transit company then secures

“By installing a SafePay system,

your store efficiency will improve,

you will experience a decrease in shrinkage

and robbery attempts and you will

have access to cash-cycle data for

improved management reporting,”

says Venter.


ATMs & CASH-HANDLING

morning’s and Monday morning’s CIT pick-

ups and approximates R100 000.

Cost of fundsIn a traditional cash-management

environment the retailer receives value

for his deposits the next day and in some

cases this stretches to up to three days,

depending on various external factors such

as the distance between the store and the

nearest bank cash centre,

In-store cash insuranceThe national average cost of in-store cash

insurance is 1,25% of maximum exposure

or R1 250 per month.

Richard Phillips, joint CEO of Cash Connect

Management Solutions, says it is important

to identify where the existing costs actually

lie in order to make a realistic cost-saving

comparison.

The following guidelines cut through the

clutter and provide valuable pointers as to

where the often hidden costs can be found.

For purposes of this exercise we have taken

an example of a retail store that trades 30

days a month, employs a cash-in-transit

(CIT) service from Monday to Saturday and

banks a monthly total of R1,5 million in

cash. The maximum amount of cash that

would accumulate in-store in this scenario

is what is received between Saturday

Cash-in-transit insuranceThe national average cost of insuring of cash while in the custody of a CIT carrier is 1,86% of maximum exposure, or R1 860 per month.

Cash-in-transit service feeWhile this fee can vary dramatically between companies, the national average for collection six times a week is about R3 000 a month.

Cash shrinkageCash shrinkage can arise at various points along its route between the till and the bank account, and in a traditional cash-management environment the retailer is forced to employ people to control people. The national average shrinking-rate is about 0,15% of cash turnover. On the assumption that the store takes R50 000 in cash a day, shrinkage amounts to R75 a day or R2 250 a month.

The cost of cash handlingBusiness owners often believe that converting traditional cash-control

processes to an automated end-to-end cash-management service will add

costs to the business.


the CIT routing schedule and sometimes the bank where the

account is located, and even the day of the week.

The delay in receiving value even for one day creates a

permanent shortage of cash flow and a loss of one day’s interest.

The retailer may have to use an operating overdraft with which

to fund the shortfall. Under these circumstances and assuming an

overdraft rate of prime plus 4%, the cost of funds can amount to

R1 104 monthly.

Bank cash-deposit feeThe fee for banking cash varies quite dramatically, but if banked via

a commercial cash centre, the cost averages R0,35 cents per R100,

which translates into a monthly cost of R5 250.

Cash-counting supervisionWithout the aid of automation technology, the retailer has to

either employ a back-of-store supervisor to whom the cashiers are

required to hand over their takings periodically throughout the day,

or cashiers have to manage their cash themselves. Trials conducted

in fast-food outlets suggested that a store manager or supervisor

would spend as much as 17 hours a week counting and verifying

cash receipts from the cashiers.

Assuming a basic salary of R8 000 monthly and applying a

conservative approach of apportioning only the 17 hours a week

cost to this equation, the cost of counting cash amounts to R2 308

per month.

In summary, this store spends R16 774 managing its cash. The

equivalent, fully automated, end to end cash management service

that provides same-day value to the retailer will cost approximately

R11 850 a month and the risk is entirely removed from the

moment the cash is dropped into the cash vault in store and a

saving of 29% or R4 942 a month in this scenario is achieved.

Hidden costsThere are also costs that are difficult to quantify, but that can easily

become a reality.

These are:

■ costs associated with the consequences of an armed robbery in

which both life and limb are severely threatened;

■ costs associated with the drop in footfall in the store that

almost always arises post a major robbery incident and

continues sometimes for as long as six months after the event;

and

■ the loss of cash flow arising from the robbery and the cost of

this shortfall for as long as it takes for the claim to be settled.

ConclusionIt’s worth taking the time out to do the sums. Identify what your

actual costs are and obtain a quote to automate your cash-

management processes.

Be sure to contract a leading supplier of retail cash-management

services and one that offers robust technology that creates the

essential deterrent impact on would-be criminals.

It is worth making the effort to protect yourself, your staff, your

customers and your business from becoming a victim and save

costs while you are at it.

We supply retailers with automated cash management solutions that give an instant guarantee of value, removes the cash risk and ensures fast cash settle-ments, and more importantly, creates a safer and more efficient trading space for retailers, their staff and customers. At Cash Connect we believe that we can enable businesses to operate more efficiently and securely. And, we do so in spite of the fact that we exist within a society where crime and armed robbery is the norm. Currently, and on average, there are 52 violent robbery attacks daily on South African businesses. As a result, and at a too-great-a-cost, our retail sector is digging deeper and deeper to safeguard its earnings, custom-ers and employees. Our brand promise is ‘We take the risk’, from the moment you deposit the cash in our retail cash vaults, whilst in transit and until it reflects in your bank account – we have you covered.

It’s like we move the bank to your store!

we take the risk

JHB (Head Office) +27 11 466 0794CT +27 21 834 1800 I DBN +27 31 825 [email protected] www.cashconnect3000.co.za

COMING SOON

www.cashconnect3000.co.za

Other stores get hit,

we don’t*

*Hit and run armed robberies on our range of Connectr® devices are very rare

One can go bankrupt from

spend ing too much on remuner-

ation and go to court for spending

too little. But these are just two

of the constraints that have

to be taken into account when

determining salaries and wages.

Many independent retailers do not have

a salary and wage policy. Forming one

requires the same processes used when

hiring people. Such an approach will help

the store maintain its salary and wage cost

percentages at a profitable level and help

the store’s overall labour productivity.

With salaries and wages accounting

for anything between 25% and 50% of

operating costs, it is the biggest cost

element for most supermarkets.

The basisWhen hiring people, two different sets of

questions have to be considered:

■ What people are available to me at

what times? How much do I have to pay

and what other costs do I have to incur

to attract them?

■ In what combinations can I employ

people of different skills levels at

different hours to get the best work

force?

There is no one answer that will satisfy

both these sets of questions. Most retailers

will find a number of possible solutions and

will have to find a compromise.

The only way to resolve this is to

measure each one’s costs against existing

costs. A thorough analysis of the store’s

current work force, structure, salary,

wage and benefit costs in relation to the

profitability, sales and labour productivity

has to be made.

The process of analysing salaries and

wages by department and employee

category will also raise questions about the

productivity of the current employees and

the manner in which they are employed.

Treating each department as an

independent cost centre and tracking its

sales will determine its profitability and

labour costs can be assessed. Comparisons

of labour productivity of other stores are a

useful tool to determine whether a store or

department’s labour productivity is below

the industry norm.

Under management fall the salaries of the owner, the store manager, the assistant manager if there is one, as well as department managers.

It is useful to allocate the cost of employing a department manager into the labour cost of the specific department. Or, if a manager looks after a number of departments, charge a portion of his cost to each department according to the time spent in it.

The general labour force can be classified as full-time employees, part-time employees and casuals. Casuals can, for convenience, also be listed as part-time employees.

This will provide an opportunity to examine the different ways in which the numbers of people and the cost of employing them can be rearranged to get more work done for the same or less money.

The employment offerIn any offer or remuneration package, labour supply available should be considered. Creative remuneration and


BACK TO BASICSForming a salary and wage policy

MANAGEMENT Full-TiME PArT-TiME ToTAlCheckouts receiving Shelf packers Delicatessen Butchery Bakery Security Admin Total

Employment costsA study of what it costs to employ a

worker can be an eye-opener.

Salaries and wages are not the ultimate

motivators of staff. There are many other

factors, like pleasant working conditions,

recognition of achievements, clean

surroundings and days off. Salary and wage

records should be split into six components.

1. Basic salaries and wages

2. Overtime

3. Unemployment insurance fund (UIF)

4. Leave pay

5. Medical aid/supplementary benefits

(e.g. pension fund)

6. Bonuses

All the other costs of employing staff,

such as subsidised and free meals, special

transport and staff uniforms should be

costed in and apportioned and classified for

analysis.

ClassificationsThe two major components of staff costs

are management and general staff.

By HiPPo zoUriDes

dedicated than casuals and can be trained

for greater productivity. Special note must

be taken of the legislation that limits the

hours and days that part-time workers can

work before being considered a full-time

employee.

Best policyThere are no easy answers to forming a

salary and wage policy. Only by the close

examination of a store’s wage and salary

bill and all the additional costs incurred

when hiring and maintaining a store’s

management and staff complement, and

the periodic review of these costs, can a

store develop a salary and wage policy

that will keep it competitive in a tough

marketplace.

benefits packaging can attract workers on a

far more cost-effective basis than straight

salaries.

A few examples of taking the available

labour supply into consideration would

include:

1. If the only workers available in an area

are not skilled, you may have to employ

more people at a minimum wage.

2. Alternatively, if better workers are

available elsewhere, you may want to offer

a package that is heavier on transport

and free meals, making it worthwhile for

workers to travel the distance.

3. The local availability of high-quality

part-time workers who could be attracted

with special inducements.

4. Similar pockets of suitable workers may

exist in your area, and a special inducement

would make your job highly attractive. It

could be the hours, a medical aid or the

payment of crèche or playschool fees that

does the trick.

Benefits and incentivesBonuses: Because bonuses have become

accepted as part of remuneration and

because these are paid regardless of

performance, they provide little or no

incentive to work more productively.

Nonetheless, care should be taken to

allocate bonuses according to the seniority

of the position and the productivity of that

person.

One way to address the cash flow

challenges of paying bonuses is to pay a

bonus to an employee on his/her birthday

or on the anniversary of the date of

employment.

You may also choose to pay an incentive

bonus. An incentive bonus depends on

results and can be attached to turnover,

profit, standards being maintained and

other criteria that determine the success of

the department or store.

A big failing for many independent

stores is that while store managers work

on an incentive bonus and a share of the

profit, not enough of the other senior

people (such as butchers, bakers, assistant

managers or receiving managers) are

included in incentive schemes. Running

individual departments as independent

cost centres, or with other suitable

performance-measurement tools, is a basis

on which incentive bonuses can be paid to the lower ranks.

Pay increases: Combining a cost-of-living increase with an amount based on merit can provide an incentive for good work.

Medical aid: Generally, 50% of the medical-aid membership fee is charged to the employee and the employer pays the balance.

Insurance: Besides the compulsory work men’s compensation insurance, consider additional insurance for their staff. Unemployment insurance is a legal requirement for every retailer.

Pension/provident fund: Generally, the employer pays 50% of the cost of such a fund and the employee pays the balance.

Meals: Where stores supply subsidised or free meals, productivity improves, shrinkage declines and staff morale increases. Such benefits are also a cost that has to be budgeted and accounted for as part of the cost of employing people.

Uniforms and leave pay: Staff members require at least two sets of uniforms each every year, while leave pay can increase the wage bill by one-twelfth if not accounted for.

Overtime: This expense should be budgeted for based on past experience.

Productive employmentThis second set of questions deals with employing the right people with the right skills in the right combinations to get the most productive, cost-effective management and work force.

The ratio of management and supervisory staff to general staff is often a weak area in independent operations where the owner/manager tries to supervise all staff. The delegation to supervisory management can often result in a lower wage and salary bill if the introduction can substantially improve the output of workers through better supervision.

The analysis of employment costs and comparisons of labour productivity such as sales per man-hour (see box) are useful tools to estimate the benefits of rearranging the management and supervisory staff to general staff ratios.

One opportunity of lowering staff costs may be the employment of more part-time staff. They are in many cases more


Departments as independent cost centres and measuring labour productivity■ All the costs of specialist depart-

ments — like the bakery, deli, butchery

and fresh produce — should be charged

to each department so that they can be

run as independent cost centres.

■ Besides staff costs, a share of the

rent, electricity and water costs, items

such as packaging, even the depreciation

of equipment for that specific

department, should be charged to the

department.

■ Comparing these costs with sales

enables the store manager to deter mine

the nett profitability of each depart ment,

and will help with decisions regarding

employment and salaries and wages.

■ The calculation of sales per man-hour

to determine the efficiency of labour, a

tool that is generally used in the USA,

is gaining popularity in South Africa.

The figure is arrived at by dividing the

total sales of the store by the number

of hours actually worked by everybody

in the store (this discounts holidays,

days off and time-off). The total sales

per department can in the same way be

divided by the number of hours worked

by the staff of the specific department.

Computerised time recorders can be

used to do these calculations.

Mageu sales grow in 2015The mageu market gained substantial

volume growth during 2015 after the

decline that was seen in 2014, according to

research done by BMi Research.

Mageu is a popular

non-alcoholic

staple food-drink

and is often used

to replace a meal.

Many consumers

consider mageu a

favourable drink

because of its

nutritional benefits

and substitute it for a meal-on-the-go as

it is low in calories and fat, yet filling and

believed to boost and sustain energy levels.

During 2014, with instability and strikes

amongst mine workers, a decline in sales of

mageu was noted, but in 2015 conditions

in this sector returned to normal and the

sales of mageu picked up.

With this improved stability, innovative

and visually appealing packaging as well as

new flavour offerings; not only was more

mageu consumed, but growth was also

seen among younger consumers.

Although 2015 brought with it increases

in fuel, electricity and transportation costs

that contributed to increased production

costs, this inflation was not sufficient

to deter growth. The noticeable pricing

increase also contributed to the significant

growth value seen in 2015.

Mageu’s primary packaging remains

the carton, with consumers favouring the

innovative turn top packaging as it makes

it easier to drink from, lessens spillage

and is re-sealable for later consumption.

The 500ml remains the preferred size for

immediate consumption and together with

the 1 litre, volumes are driven through

these pack sizes.

El Niño threatens African supply-chain continuityThe risk to Sub-Saharan Africa supply chains

heightened as countries in the region battle

with food shortages caused by extreme

weather conditions while also trying to

cope with the impact of low commodity

prices and China’s slowing growth.

South Africa and Ethiopia in particular

are struggling to cope with the prolonged

drought caused by El Niño. These adverse

weather systems are having inevitable

implications for the agricultural industry’s

output in Sub-Saharan Africa. South

Africa in particular has seen output of

white maize fall by 31% this year due to

the effects of El Niño. To cope with this

disruption to production, the country will

have to import 3,8m tonnes of maize that

will place increased strain on the country’s

foreign exchange reserves.

The risk of floods and landslides

damaging the infrastructure in certain parts

of the region further threatens supply chain

and business continuity in the region.

The impact of adverse weather

conditions is compounded by economic

headwinds facing the region. Sub Saharan

Africa’s largest economies are dependent


Industry news

Labour minister warns about employment equitySouth African businesses are lax when it comes to compliance with

employment equity legislation.

The Department of Labour warned that they would give non-compliant employers six

months to rectify the situation before acting against them.

The minister said her department would implement the penalty provisions in the

Employment Equity Amendment Act that allows for penalties of 2% of annual turnover for

a company that fails to implement its own employment equity plan. This can rise to 10%

for repeat defaulters.

According to the 16th Commission For Employment Equity (CEE) Report launched

recently, the percentage of white people at top-management level is 68,9%, followed by

Africans at 14,3%, Indians at 8,6% and coloureds 4,7%. The representation of persons with

disabilities decreased from 2% in 2014 to 1,7% in 2015.

The CEE Report cites figures from Statistics South Africa that shows that Africans account

for 77,4% of the economically active population, followed by coloureds at 10%, whites at

9,9% and Indians at 2,7%.

The report further states that the top-management level in the public sector is

mostly populated by black people (Africans in particular), while white people are mostly

concentrated in the private sector. Labour minister Mildred Oliphant expressed concern

about the state and pace of transformation in the country.


DiaryLeading trade fairs, exhibitions and events of interest

to supermarkets and their suppliersNATioNAl 2016

8 June Africa HealthMidrand The exhibition will attract more than 7 000 healthcare professionals

and host 500 of the world’s leading healthcare suppliers, manufacturers and service providers.

10 June old Mutual Trophy Wine ShowJohannesburg The Old Mutual Trophy Wine Show is South Africa’s premier wine

competition. It recognises the top local wines and winemakers and honours excellence in the wine industry.

12 June SAPiCS Conference & ExhibitionSun City Annually, professionals with a passion for supply chain management

meet at the SAPICS Conference to discuss topics and explore resources relevant to the supply-chain profession and benefit from valuable networking opportunities.

15 June Global Summit of the Consumer Goods ForumCape Town The Summit is aimed at business leaders interested in the latest

strategies, actionable ideas for retail excellence, with a specific focus on food and networking.

19 June Halaal WorldMidrand The Halaal World Expo aims to provide the international Halaal

industry with information on business opportunities available in the global Halaal market.

21 June AVi Africa Poultry ConferenceJohannesburg Avi Africa is the biggest poultry conference and exhibition in Africa. At

this congress, exhibitors will be demonstrating their latest products, technology and skills.

22 June Biometrics in Financial ServicesJohannesburg Delegates can look forward to Insightful presentations on data

processing and security, the current status of the mobile wallet and biometrics deployment in Southern Africa, developing and using biometrics in ATMs, reducing bank fraud through integrated identity management, data retention and the use of biometric records, factors affecting success of biometrics in channels, and key policy and regulation considerations.

29 June Africa PrintNelspruit The Africa Print Expos are designed to help printers succeed in the

industry by giving visitors access to the latest technology and advice from industry experts.

29 June Manufacturing indabaJohannesburg The aim of the Manufacturing Indaba is to bring together business

owners, industry leaders, government officials, capital providers and professional experts to discuss challenges and to brainstorm solutions.

iNTErNATioNAl 20167 June internet retailer Conference & ExhibitionChicago The trailblazers of e-commerce come together at the world’s largest

e-commerce event to share their expertise. This diverse group of more than 200 experts represents all areas of the industry, ensuring the agenda has wide appeal.

9 June Free From Food/Functional Food ExpoAmsterdam Free From Food/Functional Food Expo, Europe’s only dedicated

showcase of free-from and functional food and drink, returns is set to feature an impressive line-up of exhibitors specialising in free-from products alongside speakers and new attractions.

28 June The retail ConferenceNottingham This will maintain focus on the future of retailing in the digital age,

exploring everything from the omni-channel customer experience and property to the built environment and sustainability.

For more information on these and other events, go to www.supermarket.co.za (Trade Fairs & Events)

or contact us on (011) 728-7006

on commodity exports to China. With

commodity prices remaining persistently

low and China’s growth slowing, these put

stress on businesses and supply chains in

the region.

Globally, supply-chain risk rose for the

second consecutive quarter to the highest

recorded level in a first quarter since

records began in 1995. Natural disasters

are contributing to heightened supply chain

risk in other parts of the world as well.

However, the extent of disruption to supply

chain activity is determined by a country’s

capacity to cope with such damage.

Despite a 6,4-magnitude earthquake in

Taiwan and a 5,8 magnitude quake in Japan,

manufacturers in both countries were able

to swiftly resume production, using stock

reserves to plug any gaps.

“The latest risk index shows that

regardless of international political

relations, supply-chain activity will always

be exposed to the threat of natural

disasters and extreme weather. The effect

of drought on South Africa and the Sub-

Saharan African region has quantified this

in recent months. A fundamental step in

sustaining a resilient

supply chain is

identifying areas of

risk, and establishing

precautions that

work to minimise the

disruption caused.

The experience of

businesses in Japan

and Taiwan reflect how the magnitude

of disruption was overcome effectively,”

says Andre Coetzee (pictured), managing

director of the Chartered Institute of

Procurement & Supply (CIPS) Africa.

APOLOGYIn its March edition, Supermarket

& Retailer featured a case study on the

energy conservation of the Food Lover’s

Market in Nelspruit in an article under

the heading “How energy efficient is

your store”. A wrong photograph of

SUPERSPAR The Grove in Nelspruit

was placed with article, which is in

no way related to the Food Lovers

Market outlet. Supermarket & Retailer

apologises for any inconvenience caused

as a result of this error.

Mix UP

Mix any drink,anytime with the new Refreshhh!

mixer range! Available now in6 delicious flavours!

TEL. (011) 865 2598 (JHB). TEL. (043) 731 1718 (EL) TEL. (031) 940 0096 (KZN) TEL. (021) 001 4170 (CPT)

www.refreshhh.co.za refreshhh

stay cool and look after your fridges - Supermarket & Retailer

Documents

Transcript of stay cool and look after your fridges - Supermarket & Retailer