19/06/2013 (fnbnews.com) - Africa’s Big Seven (AB7), one of the largest food and beverage trade shows on the African continent, will be held at the Gallagher Convention Centre in Midrand, Gauteng, South Africa, from June 30 to July 2, 2013.

The 2013 edition is the 11th essay of the show, which comprises seven fairs – AgriFood; Pan Africa Retail Trade Exhibition; FoodTech Africa; DrinkTech Africa; Interbake Africa; Retail Solutions Africa; and FoodBiz Africa; and Halaal World.

The event is being organised by Exhibition Management Services. When quizzed about the size of Africa's food and beverage industry, John Thomson, the company's managing director, said, “The population of Africa is approaching one billion inhabitants.”

“There is a rapidly-growing middle-class of consumers with a taste for exciting new things, including packaged foods and exotic beverages. Africa would be spending almost $1 trillion on food and beverages annually by 2050, according to estimates,” he said.

Training Partner
Thomson said India is the fourth-largest training partner to Africa, with trade in 2011 reaching $60 billion from just $3 billion in 2000. “In 2014, this is expected to reach $75 billion,” he said.

In 2009, India's imports from Africa totalled $18.8 billion, and its exports to Africa totalled $13.2 billion. Tanzania, Kenya, Uganda, Burundi and Rwanda are the major food exporters to India, mainly of palm oil, basmati rice and maize.

“A 20-fold increase in bilateral trade in just over a decade is quite an achievement. Both the countries have since decided to raise their bilateral trade target to $90 billion by 2015, up from an initial target of $70 billion set earlier,” Thomson said.

Indian Imports
India imports confectionery, fruit juices, carbonated and alcoholic beverages, jams, jellies, dairy products, health foods, biscuits, cookies, wafers, processed fruit and vegetables, soups, syrups and seasonings, fresh and dried nuts, pasta and noodles from Africa.

“India is experiencing a boom in the demand for consumer-ready food products, with the value of consumer-ready imported products reaching $1 billion in 2008 and $2 billion in 2011,” Thomson said.

He said that palm oil was the most popular cooking oil in Africa and India, adding that the demand, which was 4.4 million tonne in 2012, was expected to rise to an estimated 7.7. million tonne by 2025.

Palm Oil Buyer
“Palm oil plantations are on the rise in West African countries like Nigeria, Ghana and Liberia. India was the world's biggest palm oil buyer with 6,69,912 tonne (36 per cent of the annual production) in 2012. A further eight million tonne would need to be imported in 2015, just to meet the consumer demand,” Thomson said.

In 2012, the largest contributors to India's food imports were almonds (86,641 tonne worth $366 million); pistachios (8,818 tonne worth $62 million); grapes (3,899 tonne worth $8 million); apples (1,79,015 tonne worth $189 million); pears and quinces (17,409 tonne worth $13 million); sugars (1,24,583 tonne worth $125 million); cocoa (14,829 tonne worth $180 million); fruit juices (20,667 tonne worth $36 million); sauces and mixes (7,369 tonne worth $13 million), and beverages and spirits (17,72,37,697 tonne worth $274 million).

“These figures show where Africa has the potential to trade with India in the food groups. For example, Africa is renowned for sugar and cocoa exports,” Thomson said.

7 Distinct Centres
Thomson said Africa's Big Seven is the biggest food and beverage trade exhibition in Africa, and combines seven distinct sectors in the food and beverage value chain into one giant umbrella event.

The seven sectors are AgriFood (an expo for growers, producers and manufacturers); the Pan Africa Retail Trade Exhibition (for the merchandising sector); FoodTech Africa (which covers ingredients and flavourings, manufacturing, production, processing and packaging technologies); DrinkTech Africa (which covers the entire beverage industry from manufacturing equipment to bottling, packaging and finished products); Interbake Africa (which covers every aspect of the baking sector from ingredients to equipment); Retail Solutions Africa (which covers retail IT, security and cash handling equipment, shop fitting, refrigeration, store layout, merchandising, display equipment, point-of-sale systems, back-office software and lighting systems), and FoodBiz Africa (which covers the food service and hospitality sector).

“The show is endorsed by the Consumer Goods Council of South Africa. It will host a workshop on ‘Taking Your Business into Africa’ on July 1, 2013. It is an evergreen topic for manufacturers; exploring the ever-growing myriad of new opportunities, challenges and markets that are sprouting up all over the African continent,” Thomson said.
 
“In addition, AB7 is hosting two business match-making breakfasts on behalf of the Chinese and Mauritius delegations. These events effectively source and invite potential business matches such as importers, distributors and wholesalers and create face-to-face business interactions. We are expecting more than 70 guests and over 20 multi-sector Chinese exhibitors at the breakfast this year,” he added.

Thomson stated that the seven components of AB7 help to differentiate each sector and yet logically unify them into the biggest food and beverage trade event of its kind on the African continent.

The SAITEX Advantage
“However, as regular exhibitors and visitors would know, AB7 takes place alongside the Southern African International Trade Exhibition (SAITEX), over the same three days, at the same venue. The combined attendance totals over 900 exhibitors and over 15,000 visitors,” he added.

Thomson said exhibitors would benefit from the incredibly diverse and extensive audience, and get the opportunity to network face-to-face with existing and new potential clients, scope out the competition, discover the latest trends and innovations, grow networks and sign deals. “Everyone involved is very comfortable with the format, which provides an extremely effective, versatile and affordable platform for the world to do business in Africa,” he added.

“Each show focusses on a specific sector, which simplifies the physical grouping of exhibitor companies throughout the five halls of Gallagher Convention Centre, and eases navigation of the show for visitors,” Thomson said, adding that AB7 has established a solid reputation as an event that delivers the results that exhibitors and visitors expect, and it provides a solid platform for showcasing products and services, networking with focussed suppliers and customers, and discovering new markets.

An Extravaganza
Thomson said AB7, which started out as a meat industry show 11 years ago, has grown year-on-year into the multi-sector extravaganza we know now. “Usually by February, more than 80 per cent of the available floor space is already booked out,” he added.

“There are two main factors driving this growth – a growing recognition by international companies of the opportunities arising in African markets, and regional companies exploring their African neighbours for business opportunities. Africa is now being seen as the final frontier of new markets,” he said.

Thomson said, “We are expecting more than 300 exhibitors at this year’s show, with well over 8,000 visitors from around the world. That is just for AB7. SAITEX also attracts several hundred exhibitors, and another 7,000-odd visitors, all with free access to both shows. The benefits for everyone grow exponentially because of that.”

“In the last two years, AB7 has seen an exponential growth in the number of Indian exhibitors. In 2011, there were just 17 companies from India, and this year, there are over 60 companies – a 500 per cent increase,” Thomson added.

Massive Industry
When quizzed about AB7's success and how it helps as a platform for new business opportunities, he said, “Remember that AB7 revolves around the most basic human need – food and drink. That has spawned a massive global industry geared to feed most of the world three square meals a day.”

“That simple need has also fuelled the never-ending quest for new tastes, flavours and aromas to satisfy the demands of an insatiable world. AB7 is successful because that is what is does,” Thomson stated.

“AB7 is an established, recognised hub for business opportunities that brings together sellers and buyers at the gateway to the most exciting new market in a decade. It is where companies can showcase their wares face-to-face with tens of thousands of business people; it is where a small business can grow its client base, and an established enterprise can cement relationships with existing clients. AB7 is the first entry point into Africa, and the key to access markets around the globe. AB7 translates all of these into solid business deals,” he added.

Expansion Plans
The government of South Africa plans to expand the food and beverage sector by 1.2 billion Rand as a part of its National Development Plan, and will also pump a further 2.5 billion Rand into the hospitality sector.

“The government's National Exporter Development Programme aims to boost trade in export products and services, including the food and beverage sectors, especially targeting micro and medium businesses,” Thomson said.

Thomson said AB7 has provided fruit juice manufacturers in Uganda access to suitable equipment, adding that it has allowed supermarkets in Ghana and Nigeria to stock up on goods manufactured in South Africa; provided an Angolan soft drink company access to other markets; put Ethiopian honey into Johannesburg health shops, and so on.

“The question is no longer if a business or company should enter the African market, but when and how. The time is now, and AB7 provides a valuable, cost-effective solution to stakeholders in the food and beverage sector worldwide. Most importantly, almost all visitors and key decision-makers, managing directors, business owners, wholesalers, agents and manufacturers,” he added.

Future Prospects
About the future prospects of Africa's food and beverage industry, Thomson said, “To a great extent, it is tied to the continent’s growing consumer class, but as its industries and markets develop, Africa will play an ever-increasing role in markets around the world. Some economists have already stated that Africa could become the bread-basket of the world.”

He added that AB7 is becoming an important facilitator in that process, linking Africa’s opportunities – as both consumer and supplier – with the rest of the world into the future.

“For example, Coca-Cola plans to double its investment in Africa to $12 billion by 2020. Kraft Foods’ African revenue has grown by over 10 per cent annually since 2009. Beverage manufacturer Diageo’s annual growth in Africa is expected to exceed 15 per cent due to strong sales of its Senator, Smirnoff and Johnnie Walker brands,” Thomson added.