DISTRIBUTION DEAL
Rhodes Food sales agreement will help BOS grow
Here’s why the deal might raise a few eyebrows
Rooibos ice tea maker BOS Brands aims to double its retail market share in SA after announcing a sales and distribution deal with JSE-listed Rhodes Food (RFG) on Tuesday. The deal might raise a few eyebrows since Stellenbosch-based investment behemoth Remgro — via venture capital subsidiary Invenfin — is a significant shareholder in BOS. Remgro is the controlling shareholder in food brands conglomerate RCL Foods and the largest shareholder in liquor group Distell. Both RCL and Distell have significant sales and distribution platforms. BOS SA CEO Will Battersby said the sales and distribution agreement followed 2016’s deal that saw RFG, which has carved a lucrative niche in the local juice segment, taking over packaging of part of the BOS’s portfolio. "We did investigate all sales and distribution options in the South African context. But we were drawn to RFG’s aggressive growth strategy — especially in the juice market. Like us, RFG is an underdog with a huge appetite and energy," h...
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