Best sold after "Best Before"

How South Africa's frugal consumers are embracing groceries sold after their recommended date, and how new retailers are capitalising on it

Newsroom

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Newsroom

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Oct 22, 2024

Best sold after "Best Before"

In a country where economic hardship is becoming increasingly prevalent, South African consumers are exploring new ways to stretch their budgets at the grocery store. One emerging trend is the rise of discount retailers that specialise in selling food and personal care products past their best-before dates. This practice, common in parts of Europe and Australia, has begun to gain traction in South Africa, as cash-strapped consumers seek more affordable alternatives.

Many small towns may recognise their own local chains, such as Kookwater in Drakenstein, but some retailers have managed to turn this secondhand practice into a lucrative and expanding enterprise on a regional scale.

A prime example of this model is Best Before, a retailer founded in 2017 by Mark Gordon and Alain Soriano. The chain has rapidly expanded across Johannesburg and is set to open its first store in Pretoria. By focusing on short-dated or past-dated products, Best Before can offer consumers significant savings—often selling items at 40% to 50% less than the prices found at major supermarket chains like Pick n Pay, Checkers, and Spar. These products remain safe to consume as long as they have not passed their use-by date, although they may no longer be at their peak quality. The retailer’s business model capitalises on the fact that food labelling laws do not prohibit the sale of shelf-stable products after their best-before date.

The appeal of these stores is evident. According to Deloitte’s June 2023 Food Frugality Index, 46% of South African consumers reported engaging in three or more frugal behaviours over the previous two weeks to make ends meet—the highest percentage among the 13 countries surveyed. With inflation and rising food costs pinching household budgets, many consumers are willing to embrace alternative shopping habits, even if it means purchasing products that would otherwise be disregarded by more traditional retailers.

Despite the legality of selling past-dated goods, this trend has not been without controversy. The National Consumer Commission (NCC) has taken a hardline stance, conducting raids on stores selling products past their best-before dates. These inspections, framed as necessary measures to protect consumer health, have resulted in the removal of items such as canned goods from store shelves, even though South Africa’s food regulations clearly differentiate between best-before and use-by dates. The former pertains to quality, while the latter relates to safety—a distinction that the NCC has been criticised for overlooking.

One such raid took place at a Shop 4 Less store in Kimberley, owned by Malcolm Koen, who specialises in selling food products past their best-before date. During the raid, NCC officials and health inspectors allegedly intimidated Koen and his staff, accusing them of selling unsafe products. Koen argued that the products he sells are clearly labelled and that customers are informed about the nature of the stock. No products were confiscated during the raid, but Koen was ordered to remove certain items under the Consumer Protection Act, which mandates that all goods sold must be of “good quality.”

Experts like Janusz Luterek, a renowned food and consumer lawyer, argue that the NCC’s actions are not only misguided but also counterproductive. Luterek points out that many products remain perfectly safe to consume well after their best-before dates, and the slow deterioration in quality is often negligible. In fact, some items, such as honey and vinegar, have indefinite shelf lives and do not even require best-before labels. Furthermore, there are no legal requirements for toiletries and cosmetics to carry date labels, making any concerns about selling such products past their best-before date unfounded.

For many consumers, the distinction between best-before and use-by dates is not always clear. As a result, the NCC’s crackdown on past-dated goods has led to confusion, with some believing that products past their best-before dates pose the same health risks as those past their use-by dates. This conflation of terms has further complicated the public’s understanding of food safety, and retailers like Best Before and Shop 4 Less have found themselves in the crosshairs of regulators despite operating within the bounds of the law.

Amid this regulatory uncertainty, Best Before continues to expand. With six stores already operating in Johannesburg, the retailer is now setting its sights on Pretoria, where it will open a store in the Atterbury Lifestyle Centre. The move marks the company’s first foray outside Johannesburg and reflects the growing demand for discounted goods among South African consumers. The new store, set to open in October 2024, will be one of the largest in Best Before’s portfolio and is expected to draw significant foot traffic from the surrounding areas.

This trend of embracing past-dated goods mirrors a broader global movement towards reducing food waste. In many countries, selling food past its best-before date at a discount is not only legal but encouraged as a way to combat the environmental and economic costs of food waste. By offering consumers access to affordable, nutritious food that would otherwise go to waste, retailers like Best Before are providing a much-needed service in an increasingly strained economic environment.

As the South African economy continues to face challenges, the demand for frugal shopping options is unlikely to abate. For many, the decision to buy past-dated products is driven not by necessity but by a desire to save money without sacrificing quality. In a market where food prices continue to rise, this approach offers a pragmatic solution for consumers looking to stretch their budgets.

While the NCC’s hardline approach may deter some retailers, others are likely to follow Best Before’s lead, recognising the untapped potential in this market. As long as the distinction between safety and quality remains clear, the sale of past-dated goods could become a cornerstone of the South African retail landscape, providing consumers with more affordable options in an increasingly expensive world.

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