Mars Africa, which is synonymous with Mars Bars, M&M' s and Whiskers cat food, has been doing rather well in the southern part of Africa, with growth of 16% in the past year, still real growth despite food inflation.
However, it is starting to feel the pain as interest rates move up, fuel rises relentlessly higher and no one has cash, or credit, for luxuries.
It's not alone in this boat. Competitors AVI, Foodcorp and Tiger Brands are also feeling the pinch, which is eating into margins.
However, unlike its competitors, Mars is much more tightly focused. It offers only pet food, confectionery and limited food offerings such as Uncle Ben's Rice and Royco.
Mars has admittedly been around for some time and has no doubt weathered other storms. But with this particular storm, the more diverse a company's range, the better it will be able to fend in a time of down-trading and belt tightening.
Source: Business Day
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