Investment by global brands has increased in emerging markets, which are replete with aspirational and brand-aware consumers. Although there is little respite on the horizon from lower utility costs or easier credit, quick-service dining and the propensity to shop, particularly for clothing and footwear, has endured in SA.
Dunkin' Donuts entrance to the market follows that of Domino's Pizza and global doughnut company and coffee retailer Krispy Kreme, which in November opened an outlet in Rosebank, Johannesburg. NYSE-listed Starbucks will open coffee shops in SA later this year.
"At GPI, we work with world-class partners to develop brands that will resonate with South African consumers, which is why we're thrilled to bring Dunkin' Donuts and Baskin-Robbins to the market," Hassen Adams, executive chairman at GPI, said on Thursday.
The agreement will see the introduction of Baskin-Robbins ice cream products in supermarket chains and convenience stores in SA.
With more than 11,500 restaurants in 40 countries worldwide, Dunkin' Donuts sells more than 1.8-billion cups of coffee a year. The brand aimed to offer regional menu items to cater to domestic tastes, it said.
SA's coffee culture has grown as a deluge of artisanal roasteries and niche chains serve up java fixes to a growing market.
Baskin-Robbins is the world's largest chain of ice cream specialty shops known for its "31 flavours" and range of frozen desserts.
According to a recent Datamonitor study, the industry is worth more than R3bn in SA.
In the domestic market, Ola SA, a division of Unilever, holds 33% of the market measured by value. The company's biggest brands include Ola and Magnum, both with a 6% share, according to Euromonitor.
Nestlé SA holds a 29% value share, with its Country Fresh bulk ice cream leading the brand rankings.
Out of home consumption is largely dominated by Famous Brands' Steers and Milky Lane chains, while KFC and McDonalds also offer a range of popular ice creams.
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