Walmart loves Rhodes pears
Rhodes Food Group’s share price rose as much as 7% on Tuesday after the company announced that it will supply US Walmart stores with canned pear halves and slices. Rhodes, which listed on the JSE in 2014, is a producer of canned foods, baby foods, fruit juice and baked beans.
Rhodes Food Group’s share price rose as much as 7% on Tuesday after the company announced that it will supply US Walmart stores with canned pear halves and slices.
The stock has plummeted almost 21% in the last month and just more than 19% in the year to date as SA consumers cut back on spending amid a weakening economy. The share closed 5.9% higher at R13.39 on Tuesday, giving the company a market capitalisation of R3.5bn.
Rhodes, which listed on the JSE in 2014, is a producer of canned foods, baby foods, fruit juice and baked beans. Its brands include Pakco and Bull Brand.
“With SA having some of the world’s best canning fruit varieties, Walmart was impressed with the quality and taste of the pears” from Rhodes, Massmart, Walmart’s subsidiary, said.
Massmart did not disclose the value of the deal.
Rhodes becomes the second SA company to supply products for Walmart as part of the US group’s export programme, also part of Massmart’s supplier development programme, which was extended to include helping local suppliers to access Walmart’s global markets.
The first SA supplier to win a supplier deal with Massmart was Glenart, which makes confetti-popping Christmas crackers. The company offers five months’ seasonal work to 500 people from poor communities near Shaka’s Head, KwaZulu-Natal.
Massmart CEO Mitchell Slape, said the “new evolution of the programme leverages Massmart’s relationship with Walmart and its global scale to find opportunities for local suppliers, both big and small, to export to Walmart’s retail markets around the world”.
Rhodes was shortlisted alongside brands such as I&J’s abalone and seafood; Vinimark’s wines, which include brands such as Fat Bastard; Distell wines; and Green Farm’s macadamia nuts.