tRADe KINgS - The African Business Journal

Trade Kings
www.tradekings.co.za
FOOD & DRINK
Trade Kings
Sweet Success
By putting quality first, Trade Kings has found the sweet spot in
the African confectionary market. On the verge of becoming the
largest lollipop manufacturers in Africa, the company has already
set its sights on Europe.
4
Food & Drink • Trade Kings
“The impetus for moving production to South
Africa was getting closer to the markets. We
saw synergies in distribution and it reduced the
costs we incur pertaining to logistics”.
Maximizing efficiency paid off in a big way. Just
a year later, Trade Kings boasted the largest lollipop
line in the southern hemisphere. And since then,
demand has only increased. Devraj tells us that the
company just ordered another line, and he could
not contain his excitement about it. “This will make
Alan Devraj, the Managing Director
of Trade Kings South AfricA
us the largest lollipop manufacturers in Africa!”
Up to the challenge
Since opening its doors in 1994, Trade Kings
Being at the mercy of the price of raw ingredients
has come a long away. Back then, it launched
in volatile markets has been a challenge for Trade
in Zambia with a single product: Boom washing
Kings. “The price of raw materials fluctuates,” says
powder. By 2005, the company experienced
Devraj. “At this particular time, there is a deflation
tremendous growth. Trade Kings expanded into
in raw material prices”. The company deals with
the soya and confectionary business. It had
this challenge in an effective way, though. “We
penetrated five major export markets: Malawi,
have synergies in buying - Particularly, group buy-
Zimbabwe, Botswana, Congo and South Africa.
ing. Our parent company has been manufacturing
Today it is the maker of some of the most
confectionary since 1994, and as such we have
recognizable lollipops and hard candies on the
experience in procurement – locally, regionally,
African market, and it’s still growing.
and internationally. We draw from this experience.
In 2009, Trade Kings heavily invested in its
As an example, we consolidate our purchases with
South African arm to launch a plant in Johan-
Trade Kings Zambia and purchase quality flavours
nesburg for the production of chews and hard
from Europe at cost-effective prices”.
candies. Alan Devraj, the Managing Director of
The company relies on collaboration be-
Trade Kings South Africa explains this decision:
tween its sales and marketing staff to develop
JULY 2012 • The African Business Journal
5
6
Food & Drink • Trade Kings
new product ideas. Though doing extremely well,
Trade Kings has been able to focus on producing
Devraj sees a lot of space for growth. And while
top-of-the-line products. “Innovation is very cru-
Trade Kings is growing, they are also learning.
cial in this industry and we tie up with European
“We’ve learned that some markets prefer milk-
flavour houses to produce high quality products.
based lollipops, other markets prefer straight
We are also involved in their cyclical process
fruity flavours, while others lean heavily towards
of research whereby we remain aware of latest
a chocolate preference”. The company relies on
global trends in the confectionary industry. In ad-
collaboration between its sales and marketing
dition, we use highly automated and advanced
staff to develop new products.
machinery sourced from Europe”.
A focus on quality
Excited for the future
The secret to success has been what Devraj calls
So what’s next for a company on the rise? Af-
an “emphasis on quality”. “We offer premium
ter Trade Kings increases its capacity with the
quality on our brands and surprisingly, African
launch of the new plant, the plan is to move into
clients will pay a higher price to ensure that this
the European markets. “We have a lot of inqui-
quality is preserved.” Guided by this philosophy,
ries to supply our product in European markets.
JULY 2012 • The African Business Journal
THS 1/2pg Corp Ad ABJ TradKings 4/11/12 11:31 AM Page 1
C
M
Y
CM
MY
CY CMY
7
K
Composite
These markets are serviced by manufacturers
Chews, and Soccer Chews. They have recently
out of Turkey and South America who do not
launched Amazon Monsta Pops, which became an
offer quality products and their prices are very
instant hit. The near future undoubtedly holds chal-
high,” says Devraj. “At the moment, we are tying
lenges for Trade Kings. However, Devraj and the
up an agreement with large European retail su-
rest of the company are excited to confront these
permarket chains who will list our products. The
challenges and turn them into opportunities. TAB
agreements will be concluded within the next
few weeks and as soon as we have increased
capacity from our second line”.
As Trade Kings gets ready for scaling up and
serving more markets, it continues to diversify
the range of products it offers. The locally manufactured goodies include Super Sweets, Amazon
www.tradekings.co.za
AS SEEN IN THE JULY 2012 ISSUE
OF THE AFRICAN BUSINESS JOURNAL