SOUTH AFRICA – Tiger Brands, a South African packaged goods company, has launched a multi-million-rand project to transform the appearance of spaza stores with ‘bold, eye-catching’ murals created by local artists.
The first 50 spaza stores to receive this makeover are located in Gauteng’s bustling suburbs, including Soweto, Alexandra, and Tembisa.These murals feature prominent Tiger Brands products such as ACE, Golden Cloud, Oros, and Koo.
Local artists have employed various techniques, including hand painting, spray painting, and vinyl application, to create vibrant and engaging storefronts. The company aims to complete a total of 2,000 spaza store makeovers by 2029.
Luigi Ferrini, Chief Customer Officer at Tiger Brands, highlights the mutual benefits of this branding initiative.
“The trader benefits from increased consumer traffic into their stores, and Tiger Brands’ products gain enhanced visibility in the informal sector,” Ferrini stated.
“Beyond this, the branding captures the vibrant essence of our townships, reflecting the entrepreneurial spirit and artistic talent that define South Africa.”
Tiger Brands, has been increasing its presence within the local township economy by intensifying its efforts to integrate its products into the informal sector.
The company’s efforts to enhance its route-to-market strategy, launched in 2023, is set to establish its products in at least 130,000 stores over five years. The initiative includes spaza stores, mini-superettes, superettes, and mini- and midi-wholesalers.
Since the inception of this strategy, Tiger Brands has substantially increased its presence in the informal trade sector. By the end of 2023, the company had made its products available in 50,000 stores.
As of now, that number has risen to over 71,000. Tiger Brands is on track to reach 90,000 stores by the end of 2024 and is well-positioned to achieve its five-year goal of 130,000 stores.
Meanwhile, the key component of Tiger Brands’ expansion includes providing business solutions to spaza stores and other informal retailers.
This aims to enhance the presence of Tiger Brands’ products and boost the overall consumer basket in these outlets.
Trade Intelligence data from 2022 reveals that over 70% of South African households rely on the informal trade for their grocery and product needs.
This sector represents a substantial part of the South African Fast-Moving Consumer Goods (FMCG) market, contributing 26% or R184 billion of the total R716 billion sector. Notably, the informal market is growing at a faster rate than modern trade.
Ferrini assured of considerable growth potential in the township market by providing consumers with high-quality, affordable products.
Since initiating the township route-to-market strategy, Tiger Brands has achieved a 90% increase in the distribution and availability of its products in this sector.
In addition to the spaza store branding project, Tiger Brands is enhancing its point-of-sale marketing execution and investing in branded coolers to improve the availability of its ready-to-drink beverages
