LISA WITEPSKI
A flair for innovation, based on a knack for intuiting and interpreting the market’s demands, has helped manufacturing company Analit Africa carve a niche in a highly competitive market.
Lungisa Lutshaba, founder of Analit Africa which is based in Gqeberha, Eastern Cape, has always been fascinated by consumer behaviour. What makes people loyal to one brand and eschew another? Why do product life cycles play out the way they do? How can marketers encourage consumers to connect with their product?
These are just some of the questions that he has mulled over while building Analit Africa into a flourishing, diversified manufacturer, with a strong presence in South Africa and a growing profile overseas.
The company got its start from the downturn at General Motors, where Lungisa was working in the early 2000s. Although he had studied computer science, his interest in the subject had slowly dwindled and so, when he was forced to find employment to fund further study, he looked to the manufacturing sector. He enjoyed his time at General Motors but, when the company encountered a period of turmoil and retrenchments, he decided to apply what he had learnt about business in his own start-up.
His first foray into entrepreneurship saw Lungisa establish a series of hardware stores, operating out of customised containers in his hometown of Motherwell in Port Elizabeth.
“The business did extremely well, but I found myself having to take on an extra load to make up for my partners’ lack of experience. Eventually, I decided to close it,” he says.
By now, he had acquired further skills, working with Chemin, a chemical technology incubator and taking part in a food manufacturing programme in Germany. This laid the foundation for Lungisupreme (as Analit Africa was originally named), an FMCG company which would enable him to explore, and express, his passion for business.
The company’s first product, a flavoured sparkling water, captured the market’s imagination – but, Lungisa recalls, “it was difficult for a small business to compete against the dominant industry player, which held over 42% of the market”.
Instead, he turned his attention to a product which is consumed daily by all South Africans, and which would therefore ensure more stable demand: cooking oil.
“Our feasibility studies showed that 86% of South African households use oil daily,” he informs.
Although there were already a number of brands trying to service consumer needs, Sunpheka Foods – the brand Lungisa established to tap into the market – stood out thanks to its presentation and packaging. The oils are available in sachets and on tap, so customers can fill their own containers. A solid variant, blended with coconut oil, is also available. Lungisa explains that the idea to package the product this way arose from his own experience.
“I was one of six siblings raised by a single mother. My mother would often ask me to head to the shop to buy a nip of oil - so I thought, how could I bring some dignity to this experience, make it exciting?” Cutting out the cost of packaging also makes the product more affordable for consumers, he points out.
Sunpheka Foods has since introduced a range of chilli oils and flavoured butters; “again, it’s about adding a twist to products consumers use daily,” Lungisa says.
The success of Sunpheka Foods means that Lungisa has achieved his aim of establishing a presence in major Eastern Cape retailers, but the company is setting its sights further: supported by the Department of Trade Industry and Competition, it is exploring markets in Kuwait, Dubai, Italy and the United States.
Analit Africa has expanded, too, adding Ticklecare, an organic skincare range, to its offering. Lungisa notes that, following the spate of listeriosis infections in 2017, the company thought it prudent to diversify.
“It was a difficult time for small food manufacturers,” he recalls – and, since his experience in chemical engineering meant that he had the knowledge, his entry into this area made sense.
Tickeclare prides itself on offering chemical-free, clean beauty solutions such as soap and shower gel, and is in demand with retailers such as Makro, Takealot and Clicks.
“I have always believed that the way to differentiate your brand is by finding a unique positioning. Going forward, that’s how we’ll continue to grow: making products consumers need, but finding a way to make it different to our competitors,” Lungisa concludes.
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