Parmalat defines this market segment as consisting of contract-catered outlets such as mines, hospitals, as well as independent catered outfits such as staff canteens, and tender-based businesses such as services for the South African National Defence Force and Correctional Services.
The company's Customer Services Executive, Andre Lawrence, says his company recognises the importance of the social catering market sector in South Africa and of being a significant player in this sector. They identified Hoxies, who are leaders in this significant market sector, as an ideal partner to take the business into the future.
The social catering market sector in South Africa is worth about R3,8 billion and dairy and dairy-related products account for roughly R500 million of this total. It is thus a significant market opportunity for Parmalat and one that lies close to the hearts of the company's Executive team.
Owned by the Rawjee family, Hoxies is a food service distributor of dry, chilled and frozen groceries to end users (commercial and social caterers). The company has been a primary distributor of general merchandise and speciality foods since its first store was established in Marabastad, Tshwane, in 1937. Today the company distributes some 20000 tons of products per annum and the company boasts an annual turnover in excess of R250 million.
Lawrence says that the potential customers also stand to gain from this close cooperation between the two companies as it promises consistent top quality supply of a diverse range of products at affordable prices. In addition, the venture also includes an intense focus on service delivery and support services.
The agreement will give Parmalat a national entry point into this market with the initial focus on Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, and the North West Province. After the initial business ventures are set in motion, the partnership will be extended to the remaining coastal regions.
