Food and Beverages Data Will boost the JSE Today

By Editor Sunburst africa

Johannesburg- Sunburst Africa–The food and beverages sector represent a key part of the South African economy. This is because it is a sector involved in basic needs of SA consumers-food and drinks. Consumption of food and drinks increases with consumer income. As we head towards the festive holidays consumption increases as SA consumers have more disposable income from bonuses and this is directly seen increased spending patterns. The markets await data from South Africa today including food and beverages data for October 2014. Some of the key players in the sector listed on the JSE include:

  • Awethu Breweries Ltd (JSE Code: AWT)
  • Capevin Holdings Ltd (JSE Code: CVH)
  • Distell Group Ltd. (JSE Code: DST)
  • SABMiller plc (JSE Code: SAB)

One should expect these shares to do well on the JSE as we approach December for a couple of reasons: this is the festive season and lots of South Africans will be spending on the variety of food and services offered by these businesses and this will result in increases in sales, revenues and earnings.

The price of oil continue to decease and has a positive impact on the sector as their costs will decrease and thus improving revenue.

If you still do not believe me, watch out for statistics South Africa data to be released today on food and beverages for October, 2014. One should expect an increase in total income from the food and beverages sector on October, 2014 compared to that of September 2014 which increased by 5, 4% in September 2014 compared with September 2013. The highest annual growth rate was recorded for food sales (6,4%). The data should show improvement in October figures to be released today. According to Stats SA, in September 2014, the highest annual growth rates were recorded for catering services (6,9% and contributing 1,2 percentage points) and takeaway and fast-food outlets (5,7% and contributing 2,1 percentage points). The main contributors to the 5,4% year-on-year increase in income from food and beverages in September 2014 were takeaway and fast-food outlets (9,2% and contributing 3,4 percentage points); and restaurants and coffee shops (4,8% and contributing 2,2 percentage points).

Revenue improvements should be expected from the impact of reduced costs as petrol prices have decreased. As the weather in South Africa continue to improve. Many more local and international tourist will continue to flood into various parts of the country and this will impact positively on the business in the food and beverages sector.

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