One of Musa Capital’s investee companies, African Dynamics Group (“ADG”) was recently selected by Premier Foods to be their strategic contract manufacturing partner for their new products (500g tub of custard, 500g tub of corn starch and 200g tin of baking powder).
ADG is a subsidiary of African Frontier Holdings in which Musa is a significant shareholder. ADG manufactures various porridges, drinks, soya based foods, desserts and supplements for different market segments and client requirements. They also specialize in bulk buying of products such as samp, rice, sugar and beans all for their tender manufacturing business.
Premier Foods is a major South African staple foods producer which has been operating, in one form or another, since 1852 and remains committed to providing high quality, nutritious foods at an affordable price to southern African families. Its main activity is the milling, marketing, selling and distribution of branded maize and flour products as well as the branding, marketing, selling and distribution of bread.
The relationship began in 2011 when ADG started to develop recipes and prepare the shelf-life testing of the products prior to launch. ADG’s main role in the partnership is to develop recipes, buy the raw materials, package them in bulk, blend the recipes and pack them into retail size. ADG is also in the process of developing a few other products for Premier Foods packaging and distribute to their warehouses in SA.
The partnership between Premier and ADG has created a total of 15 new jobs in the manufacturing plant, as well as in warehousing. It is our hope that the relationship will grow and be further cemented when the Premier market share on these products increases, thus justifying the existence and continuity of the partnership.