Trade Tatler Newsletter

News from the FMCG retail industry – delivered fresh every week

THIS ISSUE: 30 July 2026

Trade Tatler – Boxer sales hit by deflation | Pepkor to form fintech giant

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Hello and welcome to this week’s edition of the Trade Tatler. The weather has been rather chilly in the Beloved Country these last few days, with even our colleagues in Durban airing out their puffer jackets strictly reserved for the brutal 18-degree Celsius cold snaps they get on the East Coast. Be that as it may, our FMCG industry continues to deliver the heat, with news from Boxer, and Pepkor (yes… you are reading the correct newsletter), which is building a fintech giant that will support, among others, informal retailers. In our suppliers section, Tiger Brands goes large, Unilever pumps up the volume and Coca-Cola admits that those hydration breaks that we rolled our eyes at during the Fifa World Cup did exactly what they intended. Spoiler alert: It all had very little to do with players’ actual hydration needs. Enjoy the read.

THIS ISSUE: 30 July 2026

Trade Tatler – Boxer sales hit by deflation | Pepkor to form fintech giant

Share

Hello and welcome to this week’s edition of the Trade Tatler. The weather has been rather chilly in the Beloved Country these last few days, with even our colleagues in Durban airing out their puffer jackets strictly reserved for the brutal 18-degree Celsius cold snaps they get on the East Coast. Be that as it may, our FMCG industry continues to deliver the heat, with news from Boxer, and Pepkor (yes… you are reading the correct newsletter), which is building a fintech giant that will support, among others, informal retailers. In our suppliers section, Tiger Brands goes large, Unilever pumps up the volume and Coca-Cola admits that those hydration breaks that we rolled our eyes at during the Fifa World Cup did exactly what they intended. Spoiler alert: It all had very little to do with players’ actual hydration needs. Enjoy the read.

THIS ISSUE: 30 July 2026

Share

Trade Tatler – Boxer sales hit by deflation | Pepkor to form fintech giant

Hello and welcome to this week’s edition of the Trade Tatler. The weather has been rather chilly in the Beloved Country these last few days, with even our colleagues in Durban airing out their puffer jackets strictly reserved for the brutal 18-degree Celsius cold snaps they get on the East Coast. Be that as it may, our FMCG industry continues to deliver the heat, with news from Boxer, and Pepkor (yes… you are reading the correct newsletter), which is building a fintech giant that will support, among others, informal retailers. In our suppliers section, Tiger Brands goes large, Unilever pumps up the volume and Coca-Cola admits that those hydration breaks that we rolled our eyes at during the Fifa World Cup did exactly what they intended. Spoiler alert: It all had very little to do with players’ actual hydration needs. Enjoy the read.

+7.2%

Boxer’s turnover growth for the 20-weeks to mid-July

R200bn

annual throughput value of new Flash + Shop2Shop fintech platform

3m

litres of vinegar produced by Tiger Brands each year

$3.4bn

the selling price of half of Nestlé’s water business

+5%

Consumer price index (CPI) for June 2026

YOUR NUMBERS THIS WEEK

RETAILERS AND WHOLESALERS

Boxer

Easy does it

The short version: Boxer reports slowdown driven by deflationary environment
In its trading update for the 20 weeks to 19 July 2026, Boxer announced turnover growth of +7.2% for the period (and like-for-like growth of +2.2%), a drop compared to the +10.9% turnover growth (3.7% like-for-like) it enjoyed in the second half of FY2026. This is by no means a bad result, and is mostly attributable to deflation across key commodities, like maize meal, rice and flour, which have all come down in price over the period. For a business built on selling grocery essentials, this is bound to have a knock-on effect. Despite the drop in prices, volumes through the door are looking good, with like-for-like volume growth still positive, as has been the case over the last three years. In terms of store footprint, 19 new stores were opened (that’s almost one per week), with six of those being supers and 13 liquor stores. Looking to the rest of the 2027 financial year, Boxer expects turnover growth to accelerate due to an anticipated increase in selling price inflation (as fuel price increases ripple down to the store shelf) and a greater turnover contribution from new stores, since most of the planned store openings are scheduled for H2.

Source: Tatler Reporter 29/07/26

Ti Perspective: When Boxer reports “slowing momentum”, you must know how tough trading conditions are out there.

Pepkor

The BFD

The short version: Pepkor to merge Flash with Shop2Shop to form fintech giant
We’re not normally in the business of covering clothing and GM retailers like Pepkor. But this story will have a profound impact on informal traders across the country, so our interest is properly piqued. Pepkor has announced it will merge Flash, its distinctively cow-branded fintech platform, with Shop2Shop, a merchant-focused fintech platform providing traders with acquiring, payments, cash management and trade services. That is going to be one heck of a platform, with an annual throughput value of over R200bn, according to the business. The Flash + Shop2Shop entity will be known, quite simply, as FintechCo, with Pepkor holding a controlling interest of 57.1% in the new entity. The proposed transaction represents a huge step in Pepkor’s strategy to accelerate expansion within the informal market, expanding its already beefed-up (see what we did there?) Flash service into something even more irresistible for informal traders. Meanwhile, for Shop2Shop, it means a massive inroad into the formal market through Pepkor’s 6,600+ stores and 32 million shoppers. You do the math.

Source: BusinessTech 22/07/26

Ti Perspective: This is a big freakin’ deal (BFD). And as luck would have it, Trade Intelligence is also just about to publish its 2026/2027 edition of the Informal Retail Channel Report, which includes a closer look at just how quickly the fintech race is transforming the sector. To find out more or to order your report, contact shelley@tradeintelligence.co.za.

International Retailers

On the cards

The short version: Carrefour in Kenya launches prepaid payment card
There isn’t too much going on among our international retailers, perhaps because many in the Northern Hemisphere are enjoying their summer break. So this week we will focus on this story from
Carrefour in Kenya, which has partnered with KCB Bank Kenya, the East African country’s largest banking group, and Mastercard to launch a prepaid card for exclusive use in Carrefour stores. The idea is to create a payment solution to help customers plan and control their grocery spend better, allowing them to set a budget, track their spending and ensure funds intended for household essentials are used only for that. The card will be particularly useful for Kenyans working abroad who wish to send money home to their families to buy groceries. Since it uses the Mastercard Gateway, the card can be loaded by anyone, anywhere in the world, without having to worry about high transfer fees, and their hard-earned money being spent on discretionary purchases. What makes this more than just a souped-up shopping voucher is that it ties shoppers directly into Carrefour’s system of cashbacks, reward points, and exclusive store discounts, as well as giving unbanked or underbanked shoppers access to the convenience of card-based digital payments.

Source: itnewsafrica.com 30/07/26

Ti Perspective: Smart thinking by Carrefour there, taking a local problem and finding a local solution.

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MANUFACTURERS AND SERVICE PROVIDERS

Tiger Brands

Grand Designs

The short version: Tiger Brands transforms 123-year-old factory into culinary mega-site
Shew, Tiger Brands has been busy, busy, busy. The big news this week is the opening of its transformed Paarl factory, which will now house three dedicated production plants into one mega-site. First is the dedicated vinegar production plant, which will produce 3 million litres of the stuff per year. Vinegar is a key ingredient in many Tiger products, including Mrs Ball’s Chutney, All Gold Tomato Sauce and Crosse & Blackwell Mayonnaise, so bringing its production in-house means eliminating complete dependency on external sources. Then, the production of the iconic Mrs Ball’s (the chutney, not the lady) is being brought in-house too, after being produced by a third party these how many years. And the third is the transition of jam packaging from cans to recyclable PET containers, making Tiger the first company in SA to make this switch for that sticky spread. Tiger Brands is not messing around when it comes to investment these days. At its interim results in June 2026, the company said it will spend approximately R1.5bn annually in CAPEX for the next three years, with peak investment of R2bn. Next up is a R1bn super bakery in Pretoria, on track for commissioning in 2027, followed by a mega DC in Gauteng expected in 2028.

Source: Tatler Reporter 27/07/26

Ti Perspective: Wowser. This Tiger is most certainly burning bright these days.

Unilever

Pump up the volume

The short version: Unilever reports impressive sales and volume growth over H1 2026
Unilever Global is rather chuffed with its H1 performance, with underlying sales growth (or USG, i.e. sales from ongoing core operations) of +4.8%, volumes up +4.2% and price growth of +0.6%. This is impressive for a consumer goods company in our current economic climate, considering how over the past few years, sales of FMCG products have grown more because of raised prices than selling more products. Its Power Brands (i.e. Dove, Vaseline and others), which make up 78% of turnover, are leading the growth, with +6.0% USG and +5.4% growth in volumes, indicating that Unilever’s core engine is firing on all cylinders. The business also confirmed that the separation of its Food arm is still on track, with the spin-off to McCormick hopefully finalised by 2027. “We have delivered a strong volume-led performance in the first half, with a significant step-up in the second quarter – the best volume quarter at Unilever in over a decade,” said CEO Fernando Fernandez, whose catchy surname is basically the Spanish version of Marky Mark. (If you don’t know who that is, you were clearly born this side of 1995, in which case… look it up). Thanks to the strong performance, the business has confidently upgraded its outlook for the rest of the FY.

Source: Tatler Reporter 28/07/26

Ti Perspective: With food growing just +1.2% in sales and volume, Unilever probably can’t wait to cut it loose and start focusing solely on being and growing as a pure-play personal care and beauty company. Not too long to wait now.

Suppliers in Brief

If it makes you happy

The short version: Libstar appoints COO | Coca-Cola “not unhappy” about FIFA hydration breaks | Nestlé to sell half its water business
We kick off our wrap-up of short and sharp stories with local outfit,
Libstar (Lancewood, Denny, a bunch of retailer private brands), which for the very first time has appointed a Group Chief Operating Officer. The lucky appointee is Cornél Lodewyks, currently Executive Director of Libstar and Managing Executive of Lancewood, who will step into the new role from 1 August. As COO, Mnr Lodewyks will be responsible for driving group operational performance and strengthening collaboration, efficiency and the delivery of sustainable value for all stakeholders of the business, from customers to employees and, of course, shareholders. Alles van die beste, Mnr.

Moving abroad, ten points for honesty go to Coca-Cola’s CFO John Murphy, who, when commenting on the mandatory hydration breaks during the recent FIFA World Cup and how they boosted Coca-Cola and Powerade sales, had this to say: “I’m not sure whether these hydration breaks are going to be a permanent ​feature of the soccer world, but we were not unhappy with them in the World Cup”. As a result, the company’s Q2 comparable revenue rose a nice +6%, beating its own estimates. Will the uptick in demand remain or turn out to be a one-time bump? We’ll have to wait until the next results announcement to find out. 

And still with beverages, Nestlé tells us that it has sold half of its water business to a private equity firm for a tidy US$ 3.4bn. The 50:50 joint venture between Nestlé and Platinum Equity will result in a new premium beverage business called Peranel, which will include more than 30 brands, such as S.Pellegrino, Source Perrier and Essentia, as well as Nestlé Pure Life and other water brands. Currently, water and other premium beverages make up only 4% of Nestlé’s business, and haven’t been doing so well over the past few years. The transaction fits in with the food giant’s broader strategy of shedding its underperforming assets to focus on more profitable opportunities.

Source: Reuters 28/07/26, Fooddive.com 24/07/26, Tatler Reporter 27/07/26
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TRADE ENVIRONMENT

Inflation

Higher in June, but the interest rate holds

The short version: Higher fuel prices drive up total inflation, while food price increases remain contained
Stats SA’s June 2026 inflation (aka Total CPI) came out at +5.0% (after +4.5% in May, +4.0% in April and +3.1% in March 2026). What happened? 

  • No surprise, transport inflation is the biggest driver of higher total inflation, +12.7% year-on-year for Jun 2026. As you and your wallet will recall, the fuel price increased at the beginning of April and then again at the beginning of May. In June, petrol went up again (although diesel did come down a bit), sending fuel inflation to +34.3% year-on-year for Jun 2026. Not so long ago in March (although it feels like an age), we saw deflation of -8.7%.
  • Housing and utilities CPI: Relatively stable at +5.5%, water and electricity remain high (+6.9% and +9.9%, respectively). Rent is at +4.0%
  • In some good news, food and non-alcoholic beverages CPI was only +1.6%, continuing to move lower (May: +1.9%, Apr: +2.9%). Meat inflation edged lower to +5.1%. Several sub-categories reported deflation, i.e. processed foods; breads & cereals; fruits; and vegetables 

When the SA Reserve Bank’s Monetary Policy Committee (MPC) met last week, they decided to keep the interest rate unchanged. It was a close call, with four members getting what they wanted, while two members voted for a +25bps increase, due to the uncertain outlook around the international oil price and the upside risk to inflation.

Source: Tatler Reporter 29/07/26, Source: Stats SA | SA Reserve Bank

Ti Perspective: While we are relieved to have dodged an interest rate hike, the future remains unknown. Should international oil prices drop and stabilise quickly, we might still see an interest rate cut before the end of 2026. However, if the adverse scenario plays out and fuel price shocks feed into food prices, the MPC has cautioned that another interest rate hike will be considered – not exactly ideal for households trying to make ends meet.

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TRADE INTELLIGENCE

Ti Retail Conference

Navigate complexity, unlock opportunity

Our Trade Intelligence (Ti) Retail Conference is fast approaching, and we just. can’t. wait. This year, Nedbank joins as the conference’s lead sponsor, reinforcing its commitment to helping businesses navigate an increasingly complex economic landscape. The programme will place a strong emphasis on translating insight into action, with discussions spanning economic conditions, artificial intelligence, digital transformation, retail media, convenience retail, sustainability and emerging routes to market. One of the day’s most anticipated sessions will be an exclusive economic outlook presented by Nicky Weimar, Chief Economist at Nedbank. Weimar will provide an expert assessment of the global and domestic forces shaping our retail sector, examining geopolitical developments, evolving international trade dynamics and domestic economic conditions influencing retail performance, while unpacking the outlook for inflation, fiscal policy and consumer resilience.

EVENT DETAILS

Ti Retail Conference in partnership with Nedbank

When: 3 September 2026

Where: Sandton Convention Centre, Jozi

Forms part of: Retail Summit at Leaderex 2026

Who should attend? Anyone looking for knowledge, to foster collaboration and explore the opportunities shaping FMCG retail.

Source: Tatler Reporter 29/07/26

For more information or to register, visit Trade Intelligence’s event registration page here

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