Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Mageu

Mageu sales decline in 2014

Although the product’s volume declined, the value continued to grow on a yearly base and an increasing popularity for mageu was identified as a trend amongst most its consumers. The reasons for the decline may be attributed to:

  • Six month strike in the mining sector, which contributes to a large portion of the market volume. Mageu has a large base of users among the lower to mid LSM. Some of these consumers grew up producing and drinking the beverage. Decline in their usage will have an effect on total market.
  • Unfavourable weather conditions in some parts of the country contributed to low usage of the product, contributing to decline in on-consumption channel volume.
  • Increase in fuel price, transportation costs and raw material costs increased production costs and was also passed on to consumers. Consumer spending was under pressure due to slow economic growth and the change in pricing affected their spending.

Mageu remains one of the oldest beverages in Southern Africa and can easily be produced. Innovative products and packaging are constant in order to remain competitive against other beverage categories.

Mageu is primarily dominated by carton packaging. The packaging is convenient and easy to use and consumers like it. The one-litre carton continue to lead the market, followed by 500ml which is expected to grow significantly in 2015 due to packaging shift by some brands.

According to BMi Research, “The market is expected to recover in 2015 as experts are optimistic that we will not experience the kind of strike we had in 2014 and the economy is expected to show positive signs of recovery.”

Mageu2Mageu packaging changes at Foodcorp

It’s out with the old and in with the new as Mageu Number 1 Smooth is relaunched in a 500ml pack, replacing the current 330ml pack size, and offering better value for money.

Boasting a smoother, creamier texture than traditional Mageu Number 1, the Smooth variant was first launched in 2009.

In fact, the black pot logo and Mageu Number 1 slogan have become well entrenched in the market since 1969. This traditional fermented non-alcoholic drink is widely consumed in South Africa as a meal replacement or energy-giving snack.

Offering great value for money, Mageu Number 1 is the market leader, with a 70% share, and the brand’s growth is ahead of market growth in a category that’s worth R835.7-million (BMI Research 2013).

Today Mageu Number 1 Smooth is available in a range of exciting flavour combinations and two pack sizes – the convenient 500ml pack and a one-litre size – both with resealable caps to make this the perfect on-the-go food drink for today’s trendy go-getters, and providing the necessary energy to cope with today’s crazy world.

Explains Nonhlanhla Hlatshwayo, senior brand manager (beverages), “To give our Mageu Smooth product the ‘Stayela’ status it deserves, we revamped the 330ml pack to a compact and trendy 500ml slimline pack, printed in bold colours to attract a youthful target market.”

The Pure-Pak Diamond carton with EloCurve combines functionality with its unusual shape. The additional curved panel allows space to highlight product features, giving the pack outstanding on-shelf appeal.

Comments Michelle Stead, sales director at Nampak Liquid Cartons, “We’re proud of our long-standing association with Mageu Number 1. I have no doubt that Mageu consumers will have many Smooth refreshing moments whenever they enjoy this uniquely South African product!”