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The 3rd Wave Continues Through SA Following a Slow Vaccine Roll Out

  • The 3rd wave continues across SA resulting in higher lockdown levels of alert
  • Alcohol has been partially banned but the hospitality industry continues to trade within tighter curfew restrictions
  • Q2 2021 consumer spending is up, resulting in higher business confidence. However, Stats SA has reported May 2021 CPI at a 30-month high with further price increases expected
  • Mobility data shows that South Africans are still spending more time at home versus in recreational spaces but visiting shops as frequently as before the pandemic started
  • 3rd wave concerns drive recent high CPG growth as shoppers eat at home

– June 2020 saw the first partial Liquor ban lift and shoppers shifting discretionary spend away from food resulting in a lower base for comparison
– This month pantry top ups such as pasta, fats and commodities remain an important part of the shopper’s basket
Sanitizers and Household Cleaners spike again after a few months of decline, as shoppers look to protect themselves from the virus
– Colder weather and the 3rd wave drive consumers to prioritize Cold & Flu Medicinal products
– Alcohol sales remain steady in the absence of a liquor ban and appear to be driving high growth in CSDs, as shoppers purchase mixers for Spirits. Declines seen are due to 2020 spikes when initial ban was lifted

  • Thought Leadership from the IRI US entitled Covid-19 Vaccine Update: Impact on CPG Industry overviews some of the trends in the country when the vaccination roll out initially began and includes recommendations for how retailers and manufacturers can partner with providers to encourage vaccine uptake

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