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7/31/2019 Devland Cc Individual Feature

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D E V L A N D C A S H &

C A R R Y ( P T Y ) L T D



2 www.southafricamag.com

After 44 years of trading

Metcash has been forced by

creditors to sell off its stores.

Rivals have been cashing in.

Indeed, several stores were

brought by one of South

Africa’s fastest growing FMCG

distributors, Devland Cah

and Carry . Managing director

Yoosuf Gathoo tells us more.

By Marie Toms

FMCG

T H E N E W K I N G S O F



D

evland Cash and Carry is one o

South Arica’s astest growing

distributors o ast moving

consumer goods (FMCG). It isbenefting rom higher disposable incomes

and a middle class that is growing to the next

level. Within that context, consumer goods

companies can make huge proft – they’re

selling products on large scale quickly and at

relatively low cost.

Family man and renowned businessman

S. Gathoo runs the frm. He knows this all too

well. Devland Cash and Carry is his amily’s

business, started by himsel and his brotherin Devland, Soweto.

It started small, modest. But now it is

embarking on an exciting new expansion

having acquired several Metcash stores.

“We’ve been around or the last 20 years

and we’ve had a little small cash and carry

which has grown organically over time,”

managing director Yoosu Gathoo says, taking

up the story. “We did a little acquisition o

some o Metcash’s Trading Arica PTY retailand whole stores in April o this year. Eight

stores to be precise.

Devland Cah and Carry foCus RETAIL

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4 www.southafricamag.com4 www.southafricamag.com


Long-lie milk is set to receive an elegant

new makeover thanks to the recentlaunch o Clover’s new long-lie milkpackaging. Designed with improvedunctionality in mind, Clover long-liemilk will not only continue to tastegreat, but will oer enhanced opening,pourability and resealability eaturesmaking it way better to handle than theprevious pack too.

Packaging Perfect

“At Clover, we consider our productsrom our customer’s point o view,which is why we decided to addressthe spillage that sometimes occurredwith the current Clover long-lie milkpacks. We conducted research in variouscountries around the world to evaluatethe unctionality o dierent packaging.The new packaging which will be oundon-shelves soon was deemed to bethe best option or our long-lie milk,”explains senior brand manager at Clover,Sherian King.

Easy to Open, Easy to Pourand Easy to Store

The unique and elegant shape o thenew pack is simpler to hold and weighsless than our current long-lie milkpackaging. The larger cap is anotherinnovation that is more comortable togrip, it also cuts the inner oil seal as youtwist it and tucks the oil neatly underthe lid, negating the need or a ring pullopening. The seal is also tamper prooand eatures a tamper proo evidencering. With a 30-percent larger pouring

area, less gulping occurs allowing orsmoother product flow. In short, Clover’snew packaging is easy to open, easy topour and easy to store.

Clover, Way Better

Clover’s ull cream, 2% low at and atree variants will soon be ound on shelin the new and improved packaging.

While Clover has the wellbeing o youramily at heart, convenience, ease o use,quality and hygiene are also top o mind

or the dairy brand that cares. So give thenew long-lie packaging a try; it’s waybetter than beore.

New Clover long-life milkpackaging way better than before

“It is a big orward step. The catalyst or the growth

I think has been the grace o god or the most part.

But we’ve also been ambitious and wanted to grow.”

Local retailers’ expansion into under-serviced

areas such as townships led to the collapse o

Metcash. It was once the biggest wholesale business

in Arica. But ater 44 years Metcash is no more.

It leaves a gap or astute players to step into,

Gathoo says.

Indeed, rom 59 stores earlier this year, Metcashnow has only about 12 stores let to sell as years o

poor trading conditions and sales declines led to its

fnancial backers reusing to extend urther credit.

In 2005, the company boasted sales o about

R16 billion, but as more and more retailers such

as Shoprite and Pick n Pay set up in wholesalers’

traditional markets, sales growth stalled.

As these retailers gained momentum, street

vendors and spaza shops that purchased mainly rom

cash-and-carry-type stores were orced to close.“It is now an opportunity or us to grow,” Gathoo

admits. “Metcash has been selling o a lot o



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stores. We saw an opportunity there

to procure some o those. We acquired

some o their smaller stores and we didso because we needed to get a ootprint

into regions. What has happened is

that because the chain stores in SA

have grown so huge they’ve essentially

grown too big and have put some

smaller stores up or sale.

“Beore the Metcash store

purchases we had two retail stores,

which obviously wasn’t a lot, so

when we saw they were sheddingtheir stores and selling o their

businesses we saw it as a great

opportunity to expand across the

country. It was a big investment

and we’ve been doing everything

that was needed to turn these into

our own shops.

“We needed to get a oothold

in the townships and this was a

perect opportunity. This industry isso competitive so we and to expand

to accommodate our margins

“We’re poised or big things going

orward,” he says. “There is huge

growth in the wholesale market

model. Metash didn’t realise that.”

According to Gathoo, Devland

Cash and Carry also operates

internationally and “Zimbabwe is a

growing market”.“Zimbabwe is one o our big

markets, a huge market,” he says.

“We’ve also got our own operations

in the country. The challenge we

see here is that there is a huge

credit risk. But we are able to

pursue opportunities like this

because we are a amily business,

we’ve got strong management and

we know how to grow a business.We have a strong team o people

behind us.”

The catalyst

for the growth

I think has

been the

grace of

god for the

most part.

But we’ve

also been

ambitious and

wanted to

grow



8 www.southafricamag.com


He is very happy with howthings are turning out.

“We’re very happy with

where we are at the moment.

Obviously we’ve invested a lot o

capital into the new stores and

it’s about maximising what we

have there and maybe we’ll look

at adding more in the uture.”

What’s the secret? “We’ve

put in a good culture that allowsus to communicate efciently

and make efcient moves.

Our structure, being amily-

owned and operated, enables

us to work very well and make

decisions. That has played a

signifcant part in our growth. It

is not like with a multinational

corporation with several

management layers and manyshareholders to please. We’re

small and able to adapt.”

You wont fnd Devland Cashand Carry on the web. The

reason or that is simple

Gathoo says. “People

understand what we do and

we’ve never really had to

market it. Every now and again

we do something to raise the

profle. Basically we try to be

as efcient as possible and get

the job done and customersrecognise that. We work with

many big names like Tiger

Brands and Clover Industries.”

Devland Cash and Carry

has also been involved in

several charitable initiatives

in the past, helping those

beleaguered with poverty.

We wish it every success

and look orward tobringing you an update on

the expansion. END

We’re very

happy with

where we are

at the moment.

Obviously we’ve

invested a lotof capital into

the new stores

and it’s about

maximising

what we have

there



Your

is thestrengthof our



Devland Cash & Carry (Pty) LtdCorner Piston and Klepkas Road

Eldoradopark, Gauteng 1813South Arica

Tel: +27 119898800

South Africa Magazine, Suite 9 and 10,The Royal, Bank Plain, Norwich,

Norfolk, UK. NR2 4SF

TNT Multimedia Limited,Unit 209, 16 Brune Place, London E1 7NJ

ENQuIRIEsTelephone: +44 (0) 1603 343367Fax: +44 (0)1603 [email protected]

suBsCRIPTIoNsCall: +44 (0)1603 [email protected]

www.tharicamag.cm

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