Case
Supplementary Resources
Abstract
Irene Ivy-Schuurmans and Dale Kneen started the Cape Herb and Spice Company in 1992, selling their wares from a modest barrow at the Cape Town Waterfront. They were housemates with full-time jobs, but both were passionate about cooking “wacky, creative and unusual” gourmet food with interesting herbs and spices that weren't commercially available. “It was while hunting for a specific herb for a specific dish we wanted to make that we stumbled onto this idea for a business,” recalls Kneen. “We thought it was unlikely we were the only foodies out there who wanted the perfect herb or spice, or combination of them, to make the perfect dish.” So the Cape Herb and Spice Company (CH&SC) was launched, and Ivy-Schuurmans and Kneen began locating and selling those speciality herbs that were so difficult to find. They never imagined then that 14 years later they would have an international, multi-million rand company and that this once-small business would reach a stage where it could go one of two very diverse ways: keep up its speciality status or become a mass producer of herbs and spices.
Ivy-Schuurmans, now the new product development director, and Kneen, who heads up the procurement department, are yet undecided, but know that the wrong decision could be the death-knell for their business.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1. Table of Products with Respective Margins and Turnover
| Product groups | Description | Percentage Share of Turnover | Gross Margin as % of Turnover |
| Grinders | Spice in bottle with grinder | 55.72 | 50.82 |
| Sets | Tins/bottles in acetate sets | 9.45 | 53.66 |
| Rubs | Spice blends in tins | 8.92 | 48.15 |
| Standard Bottles | Bottled spices with flip-top lids | 8.08 | 55.08 |
| Organic Grinders | Ordinary blends, organic ingredients | 3.56 | 54.32 |
| Kits | Spice with recipe card | 3.51 | 68.52 |
| Elements | Special blends, extra labels | 3.27 | 51.17 |
| Racks | Grinders in presentation racks | 1.86 | 46.68 |
| Fleur de sal | Special salt, packaged with spoon | 1.82 | 51.64 |
| Sweet grinders | Sugar-based grinders | 1.33 | 47.11 |
| Bulk | Unpackaged Spice | 0.97 | 27.67 |
| Shakers | Plastic shakers, value spices | 0.68 | 36.8 |
| Organic Rubs | Organic blends, in tins | 0.45 | 52.74 |
| Organic Elements | Special blends, organic ingredients | 0.31 | 53.09 |
| Tball | Tea “flowers” | 0.02 | 93.85 |
| Doy Bags | Spice in doy bags (pouches) | 0.02 | 30.98 |
| Tubes | Spice in re-fill tubes | 0.02 | 42.83 |
Source: Information provided by The Cape Herb & Spice Company on 2 September 2008.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
