Makers of a range of rooibos ice teas, BOS Brands has signed a sales and distribution agreement with Rhodes Food Group (RFG), one of Southern Africa’s oldest and largest food producing and distribution companies, according to a Fin24 report.
BOS Brands SA’s MD Will Battersby is quoted saying the agreement with RFG “will further enhance synergies across the two companies, creating a significant growth opportunity for both”. The two companies entered into a partnership last year, with RFG taking over packaging of part of BOS’s porfolio.
“This agreement sees RFG managing all sales and distribution of the BOS range of products in Sub Saharan Africa from March this year,” says Battersby.
“With RFG’s experience in the food and beverage market, its relationships with the total retail sector through its dynamic spectrum of products as well as logistical excellence, BOS is beginning a new chapter in our aim of becoming the leading player in the overall Southern African ice tea market.
Battersby continues, “Together with RFG, BOS will now be able to tap into over 10 000 outlets – double of what our current reach allows.”
According to the report, “some 70% of BOS sales is through the retail sector, with 30% sold through the on-consumption segment including restaurants, coffee-shops and schools”.
Battersby says the South African ice tea market is currently valued at approximately R900m with BOS having 12% of the retail segment.
“However, we believe that along with the partnership with RFG a long-term target of 25% share is achievable,” he says.