Super Group finally makes rebranding move

Check out where it will be rolled out.

According to CIMB, it believes Super’s rebranding campaign comes at an opportune time as sales in mature markets of Singapore and Malaysia may have slowed.

Sales growth in younger markets, like Thailand, Ingredients and lower coffee prices drove FY12 earnings growth. The firm's estimates stay unchanged for now, and they retain their target price (20x CY14 P/E, at a 20% discount to NESZ MK).

Super’s rebranding exercise aims to give its brand a vibrant feel and broaden its customer base. The rebranding will be carried out first in the mature markets of Singapore and Malaysia and the new packaging will be on the shelves in Mar. 

Younger markets like Thailand and Myanmar will not be rebranded for now. To aid consumer education, television ads will hit the airwaves in Jan and Feb before the new packaging hits the shelves in Mar.

Here's more from CIMB:

We think the rebranding comes at an opportune time as Branded Consumer sales in mature markets may have slowed. We estimate it is the younger markets that are driving Branded Consumer sales and that Singapore could be experiencing low single-digit growth.

Our channel checks reveal Nescafe was FY12’s best seller in Singapore. If executed well, the campaign could see Branded Consumer sales growth exceed its historical average of the past 2 years of 10%.

We think there is little risk of alienating its core drinkers as Super will not be changing its taste profile and has taken great pains to maintain its brand heritage through careful packaging design and consumer re-education.