21 Sep 2016 Revamp for RCL’s super-star mageu brand

The company believes that by modernising its Mageu Number One Smooth brand and delivering relevant innovation, it will drive consumption and penetration among LSM 5-7 consumers and exploit the opportunity to convert two out of three occasional users into regular users.

‘Number One Smooth is the market-growing leader of the higher value segment in the mageu category and our goal is to drive trade-up behaviour, resulting in a higher basket value,’ says senior brand manager, Tarryn Hughes.

She adds: ‘We have the opportunity to grow the category by 50% over the next five years and take it closer to R1-billion in value. “This product is unique in that it is loved by all LSMs. Mageu is infused with tradition, heritage and warm, nostalgic emotions while, at the same time, needing modern relevance.

“So while staying true to our identity, we’re moving with the times and driving relevance by reflecting the modern and progressive lifestyle of our consumers with these fully shrink-sleeve labelled and uniquely shaped HDPE bottles”

The 250ml, 500ml and 1-litre UHT bottles are supplied by long-term partner, Nampak Liquid Plastics.

Below: The old Elopak Curve packaging

From a wholesale perspective, expiry dates are the biggest concern for traders when it comes to stocking and managing fresh beverages in their stores.

“With its six-month shelf-life Number One Smooth Long Life eliminates this profit-draining concern,” she emphasises. “In addition, the product doesn’t need to go into traders’ already well-stocked fridges, providing electricity savings and the opportunity to increase their stock holdings as the product can now be stored at ambient temperatures in a stock room.”

Comments Michelle Stead, sales director at Nampak Liquid Plastics: “We’re proud of our long-standing association with Mageu Number One and excited about the additional packaging material choice to satisfy younger consumers’ tastes and increasing on-the-go consumption patterns.”

Notes on the mageu market

• The fermented beverage market – maas, mageu and buttermilk – makes up over 5% of the total market and is growing at 13% as a category.
• The mageu market, estimated at R600-million, is growing ahead of the market at 23% and is driving growth in the category.
• The mageu market is growing quickly because it meets consumer needs of an affordable, convenient (in home and on-the-go), nutritious and filling snack or meal replacement.
• RCL Foods is the mageu market leader with 82.5% value share of the mageu market.
• In the past year, Mageu Number One Smooth grew by 46% in value and 39% in volume.
• RCL Foods has invested in a new UHT facility to help meet its value and volume targets.
• Number One Smooth Long Life is available in Banana Custard, Strawberry Cream, Creamy Vanilla and Creamy Pineapple flavours. Because it is ambient, it can be moved out of the fridge area and on to shelves in the UHT milk aisle. All variants are available in six packs.

Source: PACKAGiNG & Print Media magazine, Aug 2016 issue

Related reading:

Mageu market trends and packaging changes for Mageu Number One Smooth