French entertainment giant Canal+ is dumping the popular DStv Delicious International Food and Music Festival, withdrawing as the naming rights sponsor, as it undertakes an aggressive cost-cutting exercise after taking over MultiChoice.
The festival has grown into a premium event held at the Kyalami Grand Prix Circuit over the past 13 years of sponsorship by MultiChoice, attracting thousands of attendees over a two-day spectacle.
It has brought top local, continental and international acts to South Africa, including Janet Jackson, Lauryn Hill and Wycleaf Jean, Babyface, Jill Scott, Erykah Badu, Busta Rhymes, Burna Boy, and a host of local talent, among them, DJ Zinhle, Oscar Mbo, Sjava and Kwesta.
It doubles as a culinary showcase, bringing together celebrated chefs, restaurants and food entrepreneurs who offer a wide range of cuisines, turning the festival grounds into a vibrant food marketplace.
Alongside this is a strong fashion and lifestyle component, where local designers and brands exhibit their work, adding a retail and cultural dimension to the experience.
The DStv Delicious Festival has also served as a platform for small-, medium- and micro enterprises (SMMEs). From food vendors and beverage suppliers to clothing brands and event service providers, festival organisers have cited the opportunities created for a wide network of businesses operating in the creative industries.
This combination of music, food and entrepreneurship has made the event popular with revellers who flock to Kyalami in their thousands each year to take in the sights and enjoy the acts on offer.
Insiders said the popular music and lifestyle event is among the casualties of a more aggressive push to rein in costs across the business.
Canal+ has previously said it expects to achieve cost savings of 400 million euros from its acquisition of MultiChoice by 2030. It has already shut down the streaming service Showmax, citing unsustainable annual losses.
Sunday World understands from multiple sources in the company and in the entertainment industry that Canal+ has quietly taken a decision to discontinue sponsorship of the music event.
When pressed on the issue, MultiChoice – now called Canal+ Africa – declined to directly confirm or deny the decision, offering a broad statement about its long-term investment strategy.
“Since taking ownership of MultiChoice last year, Canal+ has put in place a strategic plan to ensure a sustainable future for the company, putting it back on a pathway towards growth.
“This is essential to ensure that consumers are able to continue to enjoy compelling local and international content on leading platforms and that we can continue to support South Africa’s creative industries.
“We are proud to work with a broad ecosystem of partners, including SMEs and local production houses, which are critical to our business and to the growth of the creative sector across Africa. We remain committed to the undertakings we made during the acquisition process and are focused on building a strong, sustainable business to the benefit of South African consumers and creatives alike,” the company said.
The response did not address specific questions on the scrapping of the festival, the scale of cost savings being pursued, or the number of supplier contracts affected.
Thato Mocumi, accounts manager at Total Exposure, the public relations company responsible for publicity for DStv Delicious, told Sunday World that they have not yet been informed about the sponsorship withdrawal, but if it is confirmed that the festival is cancelled, it would mean that jobs would be lost.
The uncertainty around the festival is compounded by parallel developments within the group, including a decision to offer voluntary severance packages to staff in South Africa.
Litlhare Moteetee, Canal+ vice president for Africa corporate communications, said the severance programme is voluntary and not targeted at specific demographics.
“As this is a voluntary programme, there is no set number of employees expected to participate. There are no demographic targets.
“The programme is focused primarily on certain support functions where fewer roles may be required going forward,” said Moteetee.
This comes after the Competition Commission emphasised commitments around employment protection, supplier development, and sustained investment in local content. These obligations are estimated to be worth about R26-billion over three years.
“The merger parties have agreed to a moratorium on retrenchments for a period of three years following the merger implementation date.
Following its takeover of MultiChoice, Canal+ demanded a blanket discount of 20% on invoices from suppliers to curb costs. However, the decision was reversed after the Competition Commission hinted it could violate conditions of approval of the merger.
- Canal+, the French entertainment company, is withdrawing as naming rights sponsor of the DStv Delicious International Food and Music Festival.
- The decision is part of Canal+'s aggressive cost-cutting measures.
- These measures follow Canal+'s recent takeover of MultiChoice.
- The festival, previously popular and sponsored by Canal+, will no longer have their financial backing.
- Further details are available in the Sunday World e-edition.
