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KZN startup bags big Woolies contract

Cape Town -  A steadfast commitment to exceptional quality, service and big dreams has allowed a startup company to turn their dreams into reality by manufacturing and supplying luxury paper bags for Country Road and Trenery - brands owned by Woolworths Holdings [JSE:WHL].

Bagpac, based in Johannesburg, produces and supplies recyclable paper shopping bags for Trenery and Country Road stores, and is one of 40 small businesses that have experienced accelerated growth through the Woolworths enterprise development programme.

With the majority of luxury shopping bags having been imported for decades, South African manufacturers have never really been able to crack this highly competitive market. But Bagpac is stemming the tide and bringing luxury shopping bag manufacturing home.

When Woolworths placed its first order, Bagpac manager and owner Humeira Kazi manager could hardly have imagined that it would be followed shortly by an order of 400 000 bags to be delivered within 11 months.

“The large quantities had a big impact and it became clear that we needed to expand in a sustainable way. However, as a small business we simply did not have the means to do so on our own,” said Kazi.
 
Through the Woolworths Enterprise Development Programme the business received a R100 000 loan to secure separate premises and additional equipment to accommodate orders.
 
The bags support enterprise development and they are made from recycled material, and the bags themselves can be recycled. This initiative is part of Woolworths' sustainability programme called the Good Business Journey. 
 
Country Road General Manager Brendan Short said: “The luxury shopping bag market is tough, but this local supplier is proving that South Africans can innovate and manufacture at a price that is globally competitive while also creating jobs and up-skilling other South Africans.

"For us this is an investment in local economic development. We believe in the development of local businesses by not only providing the tools required, but also the ongoing support needed for sustainability and growth.”
 

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