Food group Mondelez International has announced that it will start business operations in South Africa.
A possible competition in South Africa’s food and beverage sector seem likely as it has been controlled by JSE-listed Tiger Brands and AVI. Mondelez manufactures Cadbury sweets and chocolates, Oreo biscuits and Stimorol.
This news comes shortly after another the world’s second biggest clothing retailer, Hennes & Mauritz (H&M), announed that it is poised to set up shop in Johannesburg, South Africa.
Last week, it was reported that H&M will open up a new shop in the Mall of Africa in Johannesburg and plans are already afoot to open another in Cape Town’s V&A Waterfront.
Mondelez and other international companies have been attracted to South Africa by Africa’s economic growth story. Johannesburg, which has world class shopping centres, attracts shoppers from all over Africa.
BDLive quoted analysts as saying this move would be good for South African consumers as they will be spoiled for choice when doing shopping.
It is understood that Mondelez already has its products in South Africa but has not forcefully advertised them.
The company already has controlling stakes in Cadbury Nigeria Plc, a leading manufacturer sweets, chocolates and bevearages in Africa’s second-largest economy.