Ref. No - BFS937308

LocationSouth Africa, Western Cape

Ref. No - BFS937308

Sector - Food

Asking Price
R1,980,000
Monthly Profit
R62,240
Asset Value
R 363,815
Stock Value
R 0
Yearly Net Profit
R 746,879

Summary

This business represents a rare opportunity to acquire a premium, asset-light platform with proven market traction. Revenue is driven by repeat orders across diversified channels, supported by strong supplier relationships and a lean operating model. The foundations are firmly in place, making this an ideal acquisition for an entrepreneur or investor looking to scale margins through export growth and channel expansion.

Give me more information

Fully describe the business's activities?

The business operates as a highly focused distributor of a premium consumer product, positioned at the intersection of brand, access, and execution. Rather than carrying manufacturing risk, the business concentrates on owning the route to market, building brand presence, and monetising long-term customer relationships across multiple channels.

Core activities include:

Product procurement & supplier management

- Partnering with established producers to secure consistent, high-quality supply at stable pricing, protecting both margin and continuity.

Sales & key account management

- Managing deep, repeat-driven relationships with retailers, hospitality groups, resellers, and corporate clients, forming a dependable and recurring revenue base.

Distribution & logistics oversight

- Coordinating fulfilment, inventory planning, and delivery through trusted logistics partners to ensure reliability and scalability without operational complexity.

Brand positioning & market expansion

- Actively growing brand visibility through targeted marketing, point-of-sale execution, and channel-specific promotion, strengthening premium perception.

Customer service & retention

- Delivering responsive order management and after-sales support that drives loyalty and repeat purchasing.

This is an asset-light, scalable distribution platform with proven market access and strong supplier relationships—offering entrepreneurs or investors a compelling entry into the premium consumer products sector, with clear pathways to channel and geographic expansion.

How does the business operate on a daily basis?

The business operates through a streamlined, repeatable daily process focused on procurement, distribution, financial control, and export coordination. Operations are efficient, asset-light, and designed for consistency rather than complexity.

Daily operations include:

Procurement management

Line 1: Products are sourced directly through owner-managed procurement, ensuring quality control and margin protection.

Line 2: Supplied by a key long-term supplier, providing reliable volume, consistent quality, and continuity of supply.

Order processing and fulfilment
Incoming orders from local and export customers are consolidated, processed, and prepared for dispatch through established logistics channels.

Financial administration
Daily invoicing, payment tracking, and account management ensure strong cash-flow visibility and disciplined financial control.

Export coordination
Export orders are managed as part of normal operations, including documentation, compliance, and logistics coordination with freight partners.

The business runs with clear operational separation between sourcing, sales, and finance, reducing dependency on individuals and supporting scalability. This structure allows the business to handle both domestic and export demand efficiently, making it attractive to an entrepreneur or investor seeking a well-organised distribution operation with international exposure.

What Advertising/Marketing is carried out?

Social media on Instagram and facebook with occasional paid promotion, occasional collaboration with stronger, related brands, 2-3 trade domestic trade shows per year, in-person visits to potential stores

What competition exists?

The business operates in a competitive consumer products market with multiple established and emerging players. Competition is broad, ranging from mass-market brands to smaller niche operators.

However, this business has clearly differentiated itself as a premium brand, focused on a well-defined market segment rather than competing on price.

Key competitive advantages include:

Strong brand positioning within a specific, quality-focused consumer segment

Proven market traction, supported by repeat purchasing and recognised premium perception

Clear separation from commoditised competitors, reducing direct price pressure

Appeal to export markets, where premium positioning enhances margins and scalability

While competition exists, few players operate successfully at this intersection of premium positioning, targeted audience focus, and export readiness. This creates a defensible niche that is difficult to replicate without brand credibility and established market access.

For an entrepreneur or investor, the competitive landscape presents opportunity rather than risk: a strong foundation locally, with significant upside through further export expansion and selective market penetration.

How could the profitability of the business be improved?

The primary opportunity to improve profitability is through expansion into export markets, particularly Europe and Asia, where demand for premium consumer products is strong.

Export markets support higher pricing and improved margins, driven by premium positioning and strong consumer perception. Larger order volumes can be achieved without a proportional increase in overheads, improving operating leverage.

International sales also diversify revenue, reducing reliance on local seasonality and domestic retail cycles. With an established distribution platform already in place, export expansion represents a clear and scalable growth strategy for an entrepreneur or investor seeking to materially enhance profitability.

Give a breakdown of staff/ functions/ length of service?

Owner - runs the business strategically
Senior Sales Rep - Sales
Junior Sale Rep - Sales

Do any have management potential?

Yes the Senior Sales Rep

How involved is the Owner in running the business?

About 20 hours per week

When does the current lease end?

Storage unit used for slow-moving/irregular stock, on a month-to-month lease.

What are the trading hours?

Normal business hours

What are the main assets of the business?

This business does not have assets, with the exception of its inventory and minor office items.

Strengths?

- Established premium brand positioning within a defined market segment
- Asset-light distribution model, limiting operational risk
- Strong repeat-order customer base across multiple channels
- Exposure to export markets, providing growth and margin upside
- Flexible operations with no reliance on long-term fixed contracts

Weaknesses?

- No fixed contracts, creating reliance on ongoing relationship management
- Some dependency on key suppliers for specific product ranges
- Seasonal sales skew, with stronger performance in peak periods
- Export growth not yet fully optimised or systemised

Opportunities?

- Expansion into Europe and Asia, where demand is significantly higher
- Ability to formalise supply or distribution agreements to stabilise revenue
- Scaling through additional sales representation or partners
- Development of corporate gifting and travel retail channels
- Margin improvement through increased export volumes

Threats?

- Competitive consumer products landscape with low barriers to entry
- Currency volatility impacting import/export pricing
- Changes in retail or travel footfall affecting sales volumes
- Supplier concentration risk if alternatives are not secured

What is the reason for the sale?

Owner has immigrated and running the business remotely for the last 19 months. While this was initially problematic, structural changes over the last year have resulted in many benefits to the current status and future potential of the business. Still the owner recognises the limitations of his position and feels the business would benefit from a closer hand on the tiller and someone who has the means and ability to elevate the brand to the next level.
Location

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Elmo

Elmo Lombard

LocationSouth Africa, Western Cape

Preferred method of contact

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