Our business model
Tiger Brands creates value and delivers on its purpose by producing, marketing and distributing everyday branded food, home and personal care products, predominantly in South Africa with a growing market presence across Africa.
Our core target consumers are middle-income consumers, the largest and fastest growing segment. Our core category is food with immediate adjacencies in beverages, snacks and treats.
Click tabs below to explore our operations
Key inputs
- SOCIAL AND
RELATIONSHIP
CAPITAL
- OUR PEOPLE
- OUR BRAND AND
REPUTATION
- MANUFACTURED
CAPITAL
- FINANCIAL
CAPITAL
- NATURAL RESOURCES
CAPITAL
SOCIAL AND RELATIONSHIP CAPITAL
- Committed workforce
- Investor confidence
- Constructive relationship with government and regulators
- Positive supplier and customer relations
- Trusted brand and reputation with consumers and society
- Stable operating context contributing to sustained market demand
OUR PEOPLE
- Strong and diverse board
- Experienced executive team
- 11 188 permanent employees (2019: 10 543 permanent)
- Enabling environment
- Adequate governance structures
- Improved reward and personal development opportunities
OUR BRAND AND REPUTATION
- Strong brand and reputation
- Unique product formulations and trusted recipes
- Research and development capacity
- Governance and business systems
MANUFACTURED CAPITAL
- 40 manufacturing facilities
- 29 sites
- Logistics and distribution
FINANCIAL CAPITAL
- Equity
- Borrowings
- Cash generated from operations
NATURAL RESOURCES CAPITAL
- Local and imported raw materials and ingredients
- Water and energy for production
- Fuel (diesel and petrol) for distribution as well as manufacture
- Fertile soil and conducive agricultural conditions
Our external environment
- Muted consumer spend in a weak economy
- Increasing competition and power shifts in food retail
- Changing consumer dynamics and growing complexity
- Increasing stakeholder pressure for responsible business leadership
- Covid-19 compounding the impact of existing trends
Throughput of primary agricultural products transformed into branded food items.
Our top 10 risks
- Albany route-to-market
- Negative impact of Covid-19
- Business continuity vulnerabilities
- Operating environment
- Food safety and product quality
- Occupational health and safety
- Information and cyber security
- Data and information risk
- Attract and retain critical skills
- Intensifying competition
and beans
and nuts
Value chain
activities
Procurement
Procuring raw materials,
ingredients and packaging
from local and international
markets
Manufacturing
Converting raw materials into
quality food, home and
personal care products, using
Tiger Brands’ proprietary
formulations
Research and development
Monitoring consumer tastes
and trends, and investing in
product and process research
and development, to ensure
that we maintain a leadership
position
Packaging and logistics
Packing our products in
branded packaging, and
distributing these products as
efficiently as possible to
consumers through a network
of customers that include
retailers, wholesalers and the
general trade
Marketing and branding
Supporting these activities
with our strategic marketing
and branding initiatives, and
our focused corporate social
investment activities
Our revenue stream
Our revenue streams comprise:
- Grains (47%)
- Consumer Brands (33%)
- Home, Personal Care and Baby (9%)
- Exports and International division (11%).
Material revenue differentiators
- The group’s long-standing market-leading position in branded food and beverages
- Our “power brands”, most of which are rated first or second in their respective categories and that have received many external awards for being South Africa’s most loved brands
- A robust marketing strategy to ensure our brands remain relevant and top-of-mind, supported by increased and targeted investment
- Far-reaching distribution capabilities
- The strength and quality of our relationships with our customers
- Strong consumer insights informing category strategies.
Outputs
Milling and Baking
Other grains
Groceries
Snacks & Treats
Beverages
Home, Personal Care and Baby
Our cost streams
Our most significant cost streams are:
- Raw material procurement
- Employee wages and benefits
- Sales and distribution expenses
- Electricity and fuel
- Marketing expenses
- Regulatory compliance costs
- Maintenance and upgrading of plant and equipment
- Other administrative costs.
Material cost differentiators
- Our ability to leverage scale through a centralised procurement hub
- Standardisation and simplification of group processes, systems and practices.
- SOCIAL AND
RELATIONSHIP CAPITAL
- OUR
PEOPLE
- OUR BRAND AND
REPUTATION
- MANUFACTURED
CAPITAL
- FINANCIAL
CAPITAL
- NATURAL RESOURCES
CAPITAL
SOCIAL AND RELATIONSHIP CAPITAL
- Provision of affordable nutrition
- Economic opportunities across value chain
- Community impact of operations
- Stable operating context contributing to sustained market demand
OUR PEOPLE
- Investment in employee skills and motivation
- Investment in employee health and safety
- Enhanced employee and board diversity
- Some negative health and safety incidents
OUR BRAND AND REPUTATION
- Investment in maintaining brand equity
- Innovation launches including in health and nutrition, value and convenience
MANUFACTURED CAPITAL
FINANCIAL CAPITAL
- Dividends
- Return on net assets
- Return on equity
- Return on invested capital (ROIC)
- Favourable funding terms
NATURAL RESOURCES CAPITAL
- Investments in numerous mitigation measures
- Innovation in products, processes and consumption
- Raw material extraction
- Energy use and GHG emissions across value chain
- Water use and potential contamination
- Habitat impacts across supply chain
- Environmental incidents
Key outcomes