Ever wondered how many of our most well-known and valuable products reach us?
Today, we'll introduce you to one of the companies working behind the scenes to make this happen.
THREAD 🧵: A Date with CA Sales Holdings (CA&S)
#1. History
In 1920, German immigrant Konrad Taeuber and business partner Fritz Corssen aimed to provide their countrymen in Namibia with German-manufactured products.
This led to the creation of Taeuber & Corssen, which eventually grew into the T&C Group.
The rise in European immigrants in Africa spurred the need for European manufacturers to expand their markets.
To meet this demand, route-to-market businesses were established across Africa to facilitate the marketing of manufacturers products.
In 1976, Mervyn Haywood established Pack n' Stack, a route-to-market business, in the North West of South Africa.
The company began by distributing products from US-based companies Kimberly-Clark, makers of the Huggies brand, and Colgate-Palmolive.
1988 marked the establishment of another route to market business in Botswana, CA Enterprises, which later evolved into CA Sales & Distribution.
The business initially grew organically, leveraging local market insights and building a strong foundation.
The company's growth sped up with acquisitions, expanding its market influence.
In 2012, CA Sales, a South African company, acquired it to build a strong distribution network and capitalize on route to market opportunities in East and Southern Africa.
CA Sales was subsequently bought by PSG Group, becoming CA&S, a dynamic entity known for its distribution solutions in Southern Africa.
In 2022, it was spun off from PSG Group
Today, CA&S holds a dual listing on @TheOfficialBSE and @JSE_Group
#2. Operations
CA&S Group is a collective of fully integrated fast-moving consumer goods (FMCG) businesses operating in Africa.
It provides route-to-market solutions for some of the world’s most-loved consumer brands such as,
Nestle
Heineken
Philips
Amka
The group partners with clients to deliver their brands across borders and navigate the supply chain, ensuring products reach stores, shelves, baskets, and trolleys.
It ensures availability and visibility for African shoppers, while also promoting the brands.
The business operates in 8 African countries and provides services in several, including:
- Botswana
- Namibia
- Eswatini
- South Africa
- Lesotho
- Zimbabwe
- Zambia
- Kenya
Botswana accounts for 50% of the business's revenue, followed by Namibia at 19%.
#3. Subsidiaries,
CA Sales & Distribution
Provides sales, merchandising, warehousing, distribution and debtor services for FMCG brand owners.
SMC Brands
A wholesale liquor & FMCG distributor, specialising in warehousing, distribution and marketing services
PnS Group
A leading national South African retail execution business, delivering maximum in-store impact for clients.
Logico
A FMCG focused business specialising in sales, merchandising and distribution solutions for the Eswatini market.
Wutow Trading
Offers comprehensive warehousing, distribution, sales and merchandising services to various channels,
Recently expanded its operations through the 100% acquisition of Namibian FMCG service provider Taeuber & Corssen (T&C Group).
Smithshine
Supplies frozen and ambient goods to the formal retail and wholesale markets, including forecourts, hotels, and restaurants.
PEO Promotions
Specializes in brand building, promotions, media services, and bottom-end brand seeding.
Other Units,
Visible Worx
Whitakers
MACmobile
Kalahari Training Institute
Takbro
Market Max
Promexs
Effective Sales
A total of 900 brands are distributed across these business subsidiaries, representing 154 clients in 4,380 stores in East and Southern Africa.
#3. Competitors
- Distributed Group Africa
- SGX Distributors
- Kamoso Africa
- BBH Agencies
- Brands2Africa
- Imperial CIC Group
- Unity Distributors
- Brand Consumer Group (Brands Africa, Safari Distributors, and BCG Supply Chain)
#4. Share price,
6.80 BWP per share as at August 28,
6.75 BWP per share on the 3rd of Jan 2024
20th on ranking in terms of year to date performance on the BSE
7th most traded stock over the past 3 months to August 28, 2024
473,337,178 issued shares
#5. Shareholding
Coronation is an active manager with a long-term, valuation-driven investment philosophy guiding all its products
Botswana Insurance Fund Management is the oldest asset management service provider owned by Botswana Insurance Holdings Limited
#6. Management
Duncan Lewis – CEO
Duncan started in industrial marketing and joined PnS in 2003, becoming CEO in 2013.
With deep FMCG knowledge, he creates strategies for market distinction and growth.
In 2019, he became CEO of the CA&S Group.
#7. Outlook,
The business is set to continue growing in line with its strategic goal of reaching 20 billion in revenues by December 2026.
Accordingly there is expectation of more acquisitions of related businesses and aggressive negotiations for new clients.
Each week will be on a Date with a company listed on the @TheOfficialBSE.
The purpose of this thread is to have a minimum appreciation of listed firms.
Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its shares