Media Feedback Report RTD Fruit Juice in South Africa April 2016

Product Definitions Product Definitions Fruit Drinks This category has a minimum pure fruit juice content of 6%. Fruit Nectar Contains a minimum pure juice content between 12.5% and 50%, depending on the type of fruit juice that is used. Lemon nectar requires a minimum of 12.5% lemon juice, and orange nectar requires a minimum of 50% pure orange juice. Pure Fruit Juice Pure juice requires a minimum of between 70% and 90% fruit juice, depending on the type of fruit that is used. Unsweetened consists of 100% fruit juice, which may contain preservatives Sweetened contains fruit juice between 70% and 90% juice. Sparkling Fruit Juice This category consists of fruit juice which is carbonated with carbon dioxide.

Market Trends The RTD fruit juice continued to grow in volume despite tough economic conditions. The category grew by 2.7% in volume in 2015. The high increase in volume was primarily due to notable increase in selling price rather than volume growth. The industry selling price grew at the same rate as the inflation rate. The following factors were believed to have contributed to category growth: New products and flavours that entered the market contributed to volume growth Notable increase in promotional and marketing activities Warmer temperatures in certain regions Weaker Rand exchange rates that promoted exports The following factors may have hampered category growth: Increase in raw material pricing affecting product price Increase in fuel prices affecting product distribution Increase in electricity prices and load shedding, affecting production Shortage of water in certain regions, affecting production The category is expected to remain under pressure in the short to medium term as the economic growth remains low and consumer spending will be limited.

Channel Distribution 2015 The top end retail remained the primary distributing channel of the product followed by wholesale channel. These channels were characterised by promotional and marketing activities, attracting more customers to their store.

Local Regional Distribution 2015 Gauteng and Western Cape regions accounted for more than half of the total volume distributed locally. Excludes Exports

Market Breakdown 2015 The long life fruit juice segment accounted for 54.8% of total volume distributed. The loss in volume share may be attributed to existing players launching bigger pack sizes that packed more volume at cheaper prices.

Average Industry Selling Price vs Inflation The industry selling price(ISP) averaged R17.37 per litre in 2015. The CPI grew at the same rate as the ISP in 2015. 2011-2013 industry selling prices were restated

Primary Packaging Demand The smaller pack size group (up to 750ml) continued to grow at a higher rate than the bigger pack size group.

BMi Solutions

BMi Tracking Report Schedule 2015 Packaging Annual Beverage Publications All reports Full Report (All reports below) Packaging overview Paper & Board QPM Quarterly Import Alcoholic Beverages Flavoured Alcoholic Beverages Malt Beer Sorghum Beer Spirits Wine Non Alcoholic Beverages Bottled Water Carbonated Soft Drinks Cordials and Squash Energy Drinks Fruit Juice Iced Tea Mageu Sports Drinks Dairy Beverages Dairy Juice Blends Drinking Yoghurt Flavoured Milk Maas Milk Annual Food Publications Confectionery & Snacks On Request Canned Protein Dairy Desserts F&C Beverages Pasta Rice Wheat and Grain Ice Cream Packaging of Snack Foods South African Confectionery Market The Impulse Market in South Africa Biscuits and Rusks Breakfast Foods Baked Products Baking Aids Eggs Fats and Oils Frozen and Par-Baked Products Premixes Pre-prepared Meals Processed Meat Products Protein Sauces Soup and Condiments Sweet and Savoury Spreads Value Added Meals

Solutions Commissioned Category Quantification Instore Category Ranging Mystery Shopping Shopper Insights Promotional Effectiveness Instore Compliance Shelf & Promotional Price Surveys Solutions Consumer Insights Shopper Insights Business Advertising & Campaign Testing Omni Channel Competitive Advertising Tracking Advertising Category Quantification Beverages Food Packaging Advanced Analytics Competitive Pricing Simulation Statistical Optimisation Model 60% Price Sensitivity Predictive Analytics

Copyright & Disclaimer All rights reserved. No part of this publication may be reproduced, photocopied or transmitted in any form, nor may any part of this report be distributed to any person not a full-time employee of the subscriber, without the prior written consent of the consultants. The subscriber agrees to take all reasonable measures to safeguard this confidentiality. Note: Although great care has been taken to ensure accuracy and completeness in this project, no legal responsibility can be accepted by BMi for the information and opinions expressed in this report. Copyright © 2016 BMi Research (Pty) Ltd Reg No. 2008/004751/07

Thank you Contact BMi Research Telephone: +27 11 615 7000 Fax: +27 11 615 4999 Email: research@bmi.co.za Thank you bmi.co.za