Clover buys olive-oil business
Clover, one of South Africa’s leading branded-foods and beverages suppliers, have recently acquired Olive Pride, a manufacturer and importer of olive oils, extra virgin olive oils, balsamic vinegars and related products.
Johann Vorster, the CEO of Clover, says the Olive Pride brand shares many touch points with Clover, such as consistent high quality, great taste and continued innovation and development.
“We believe these synergies, coupled with our extensive distribution network and merchandising capability, will have a positive impact on both companies.”
Vorster says the acquisition is in line with Clover’s strategy to also invest in non-dairy value-added product offerings.
“When we listed Clover in 2010, 16% of our business consist of value-add products. Today it is 45%. We believe that these products increase our ability to use our production and distribution channels more efficiently. It is also prudent not to rely on milk only, because it can sometimes be cyclical.”
Olive Pride imports, bottles and distributes olive and seed oils, including premium extra virgin olive oils, balsamic vinegars, seed and extra virgin olive oil blends, pitted and pimiento-stuffed green olives, and pitted green and black olives.
Clover Pride will continue to distribute, market and sell products under the Olive Pride brand. Olive Pride is the South African market leader with a 37,5% market share (based on volume) in the olive oil category. Vorster says that he believes that they can increase market share even further. Clover will also expand the category with more flavours and a bigger emphasis on the health aspect of the product.
He says retailers will benefit from the Clover distribution channel, and because deliveries take place on a daily basis, will not have to stock large quantities and stock can be replenished regularly.
“Our relationship with our retailers are very important to us and we want to help them to sell products in a way that is profitable to their businesses.”