Shoprite has introduced a new private label range of food products, dubbed Homegrown, primarily sourced from local small, medium and micro enterprises (SMMEs). The Homegrown label has been designed to create opportunities for emerging enterprises to thrive in the retail space. With access to market via Shoprite's 534 supermarkets nationwide, the retailer says the initiative enables SMMEs to get their products onto shelves, increase turnover, and impact their local community by creating more jobs. 

This development follows the launch of Shoprite Next Capital in June last year, a business division dedicated to giving small suppliers access to its consumer market. 

"'Homegrown' speaks to the products within the new private label being 100% made in South Africa by local businesses, while the product range consists of everyday favourites including chutney, tomato sauce, atchar, biscuits, chips and candy. It also provides an opportunity for customers to buy a more quality range at Shoprite stores, without compromising their budget," the retailer said.

 

Shoprite launches new division focused on SMME development 

All products under the new label are MSG-free, tartrazine- and azo dye-free and made using sustainable palm oil. The following businesses form part of the initial range of Homegrown products launching into stores. The range will continue to grow as new products and suppliers are added.

 

Exotic Taste 

Single mother Amina Abrahams in her home kitchen started exotic Taste in 2006. Her longstanding relationship with Shoprite began when she started supplying Exotic Taste's mix vegetables and lemon atchar, cooking sauces and frozen samosas to selected stores. 

The business has since expanded to a 200m2 factory in Kensington, Cape Town. Being part of Homegrown has enabled Abrahams to employ more than 30 people, which includes disadvantaged learners from the FoodBev Seta Learnership Programme. The Homegrown range includes Exotic Taste's mango and vegetable atchars.

 

QUESTION 1 (20 Marks) The case above discusses Shoprite and the launch of private label range sourced from local SMMEs. As a purchasing manager, provide recommendations on the best way to source the relevant material required in the production of any of the products mentioned in the case study.

 

QUESTION 2 (30 Marks) The case above discusses design and innovation at Shoprite. As a purchasing manager, advise on an appropriate assessment criteria you would follow for the product mentioned in question one.