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Niche Distributor Of FMCG Products For Sale

Johannesburg, Gauteng, South Africa
Asking Price:
R31,000,000 Furniture / Fixtures included
Sales Revenue:
R150,000,000
Cash Flow:
R7,500,000

This business has a customer base in the retail sector that were most affected by the COVID epidemic, therefore their trading results over the last two years reflect this, as they were unable to trade for 5 months during of FY 2020 and also had trade restrictions in FY 2021. It is a testimony of the robustness of the business that they have survived this difficult period with staff levels largely intact, and a loyal customer base that is still growing. They expect to return to pre-Covid profitability levels or better this year, as their main opposition has significantly scaled down operations. This fact should be taken into consideration when enquiring about the business.

It is a third generation family business established to serve retail, hospitality, forecourts and entertainment outlets, wholesalers, supermarkets and conference and catering facilities with beverages, snacks and sweets, confectionery products, dry goods, select wines and spirits.

It is a growing, medium size, owner-managed company that has an excellent reputation in the market place with customers and suppliers alike.

They has been the proud recipient of numerous trade awards for service excellence.

The many reputable customers they serve, will attest to the reasons they prefer to deal with this company exclusively for the products they supply. Today they service, amongst many others, all the Gauteng-based Bottle Store Groups, the largest casinos in SA, the leading hotel groups, most popular hotels and conference venues, airlines, catering groups, pharmacies, wholesalers, distribution companies, top restaurants and approximately 80% of all independent bottle stores in the areas they cover.

They own the property they operate from and this is for sale in a separate transaction.

Property Information

Location:

Business is situated in a secure prime business park.

Business Operation

Expansion Potential:

The business has many growth opportunities, and is easily scalable to service growth.

They operate from their owned facility in a premium, secure business park, and the property is for sale in a separate transaction or can be rented from the owners. In addition, they rent an adjacent property. There are several properties to let in the park should growth require same. The only other requirement to facilitate growth is additional material handling equipment and delivery vehicles which can be easily sourced from existing suppliers.

Growth opportunities include increased service offering to existing client base, diversification into dry goods and full utilization of their existing liquor distribution license.

They are in the process of taking distribution for Proctor and Gamble, which will enhance their service offering to pharmacy’s, universities and hotels.

They have also recently had a supplier withdraw from operating within their space, and the supplier have provided them with a client list of over 1000 potential clients, which they are currently pursuing.

Reasons for selling:

Owner wishes to retire

Trading hours:

08h00 - 17h00 Mon - Fri

Employees:
60
Years established:
36

Other Information

Support & training:

Owner will remain on for a negotiated training period

Relocatable:
This business can be relocated.

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