Bounty Brands on expansion trail, buys Tuffy


BOUNTY Brands, the fast-growing diversified consumer goods company, continues to make waves with another four acquisitions in the last six months, for a total consideration of roughly R1.2-billion.

A relative newcomer to the FMCG world, Bounty Brands currently boasts revenue of R3.2-bn and operating profit of R500m, executing on its strategy to grow beyond R5-bn in revenue and R1-bn in operating profit before listing in 2017, the Cape-based group said in a statement.

Of the recent deals, that of most interest to the industry is the purchase of Tuffy Brands of Cape Town, for an undisclosed sum. Tuffy is a leading manufacturer of a range of plastic bags, including refuse and carrier bags, wraps (including aluminum foil and cling film) and food bags (including zipper bags) as well as other household products.  Several of its products contain either partial or 100% recycled material; its refuse bags are produced using only recycled material.

“Tuffy is a fantastic business and its brand has become synonymous with durable refuse bags that are made from 100% recycled materials – something few competitors achieve,” said Bounty CEO Stefan Rabe.

“Tuffy will continue to trade as per normal and we don’t have any specific plans for it, other than to support its ongoing growth as a supplier of high-quality 100% recycled products in SA,” he added.

The Tuffy team, whose management team is headed by Jonathan Duffet, has achieved consistent good growth over at least the last decade. Tuffy gained traction in the Western Cape market after it purchased Uniplastics in Cape Town in 2007. At that stage the company operated from Lansdowne in Cape Town; it later moved to a far larger, specially designed site at Airport Industria in about 2010.

Bounty Brands’ strategic focus is on foods, personal care and home care and it has now set its sights on growing its presence in these categories in Central and Eastern Europe (CEE).  The specific emphasis is on Poland, where Bounty already owns Sonko, the market-leading, value added rice and healthy snacks business.  The drive to expand internationally is part of Bounty Brands’ intention to list on the London Stock Exchange as well as on the JSE.


Diversify geographically

“We’ve always aimed to diversify our income stream geographically.  The CEE region provides us with an opportunity to acquire leading brands in a relatively fast-growing, but stable market,” added Rabe.

The first acquisition of Rieses Food Imports bolstered the revenue of the Foods division and provided strong distribution and sales capabilities for future bolt-on acquisitions.  Rieses is a leading ambient food supplier to the retail market in South Africa, with a portfolio of successful brands like Serena, Offenau, Jemz and Sea Queen.  Rieses also distributes a host of well-known international brands like Sonko, Pietro Coricelli, Real Foods, Fantico and others.

Bounty’s Home Care category was established with the next two deals, Tuffy and Goldenmarc, which together contribute revenue of approximately R1bn to the group.  Both are leaders in their respective categories and supply most of the large retailers in South Africa. Goldenmarc, which is a 60 year old brand, is a distributer of an extensive range of its own brand and private label household cleaning products, tableware and kitchen accessories.

Footwear Trading, the fourth acquisition, brings with it two iconic fashion brands in Diesel and Levis, adding further fashion clout to an already impressive group of leading apparel and footwear brands like Vans, Hurley and Jeep.  The addition of Footwear Trading brings the total revenue contribution to the group by apparel and footwear brands to over R1bn.

“The consolidation of leading apparel and footwear agency brands has been a successful strategy for Bounty in South Africa, creating a sizeable business with critical mass and a relatively stable income stream” says Rabe.

Coast2Coast Capital, with its team of 50 experienced investment professionals, is instrumental in driving and executing Bounty’s acquisition strategy.  This allows the Bounty executive team to focus on organic growth and implementing synergy and integration initiatives.  With just over a year to go before the planned listing, CEO Stefan Rabe is confident that Bounty Brands will be ready.

“We have been preparing for listing almost since inception and most of the necessary controls and structures are already in place.  Although we are big enough to list locally, another few international acquisitions in our target categories will make us more attractive to international investors,” concludes Rabe.


About Bounty Brands

Bounty Brands is a fast-growing, diversified consumer goods company investing in premium brands in chosen local and international markets.  It was founded in February 2014 by Coast2Coast Capital, the same group that listed Ascendis Health in 2013.  Bounty Brands previously announced seven acquisitions: Chappers Sports Direct, Table Charm, Cosmetix, Annique Health & Beauty, Musgrave Agencies, Liberty Foods and, its first international business, Sonko – all with a combined revenue of R3bn.

Bounty Brands is headquartered in Steenberg, Cape Town, and also has offices in Johannesburg.  Its executive team includes Stefan Rabe (CEO), Peter Spinks (CFO) and Anton van Zyl (director for Food & Group Marketing).