Food and Beverages Data Will boost the JSE Today

By Vivian Atud

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. Consumers generally spend more during festive holidays on food and beverages as SA consumers have more disposable income from bonuses and year round savings. The markets await data from South Africa today including food and beverages data for November 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 today as we investors awaits the publication of the food and beverages data for November 2014 for a number of reasons: November is close to the festive season and lots of South Africans spend on the variety of food and services offered by these businesses and this 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 continue to 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 November, 2014. One should expect an increase in total income from the food and beverages sector in November, 2014 compared to that of October 2014 which increased by 11.5% in October 2014.

However, compared with November 2013, one might actually see a decrease and general economic growth was better in 2013 than 2014. In October 2014, the highest annual growth rates were recorded for takeaway and fast-food outlets (15,2% and contributing 5,5 percentage points) and restaurants and coffee shops (11,0% and contributing 5,0 percentage points).Total income increased by 7,7% in the three months ended October 2014 compared with the three months ended October 2013.

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 were in the country during the festive season of last year and this impacts positively on the business in the food and beverages sector.

For more information email info@sunburstafrica.co.za

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