Market Report 2011/12
Illovo produces and sells a range of sugar, syrup and downstream products into domestic, preferential, regional and world markets.
We sell a wide range of brown and refined sugar products to serve both our domestic and export customers. Our offerings include:
- Industrial sugar: Mainly in refined bulk form, sold primarily to soft drink, confectionery, canning and re-packing customers. Most of this sugar is sold into markets in the countries in which we operate.
- Prepack sugar: Refined and brown sugar which is prepacked in paper or plastic of various pack sizes for direct consumption in domestic markets. It is sold on to retail and wholesale customers and directly to consumers through our wide network of warehouses and distribution channels. In South Africa and Malawi, prepack sugar is marketed under the “Illovo” brand name, and in Zambia and Tanzania, under the “Whitespoon” and “Bwana Sukari” brand names respectively. In Swaziland and Mozambique, sugar is marketed on behalf of producers by their respective sugar associations.
- Bulk raw sugar for refining: Raw sugar which is primarily exported to sugar refineries via preferential access to EU and USA markets, or through world market sales out of South Africa.
- Specialty sugars: Sugar which undergoes additional or special processing to meet our customers’ unique requirements pertaining to flavour, grain size and colour, which is exported into high-premium niche markets in the EU and USA. An increasing volume of these exports is marketed under the EU-based “Fairtrade” label with price premiums returning directly to promote agricultural development among emergent cane farmers in our own countries of operation. Relatively smaller quantities are sold into domestic markets.
As part of Illovo’s Strategic Intent to optimise the return on every stick of cane, a wide variety of niche, high-value downstream products are produced and marketed from the core commodity products of sugar cane-fibre, sugar and molasses. Downstream products include syrups, ethanol, furfural and furfuryl alcohol, diacetyl, 2.3-pentanedione, BioMass Sugar, agricultural nematicides and an increasing supply of electricity. Lactulose is also produced at Merebank in South Africa
Domestic sales in the countries in which we operate represented 64% of total sales in 2011/12.
In South Africa and Malawi, sugar is marketed
under the Illovo brand name, and in Zambia
and Tanzania, under the Whitespoon and
Bwana Sukari brand names respectively. All
sugar produced in Swaziland is marketed
by the Swaziland Sugar Association and by
Distribuidora Nacional de Açúcar (DNA) in
Illovo continues to benefit from strong
market shares in each of the countries in
which it operates and, in the year under
review, domestic market sales represented
65% of total sugar sales volumes.