Rhodes Food Group (RFG) – The Rhodes Less Travelled

Looking back at the evolution of RFG, we show that the business has shifted from being dominated by its fresh foods segment and is increasingly moving towards a greater weighting in its regional long life business. While this may initially appear to be counterintuitive, given that the fresh foods business is a more cash generative and higher margin business, we see this as a strategic shift by management to bolster its offering and presence in other parts of Africa where margins for its long life products are higher than those in S.A.