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Our key relationships

Our key relationships

Recognising the critical importance of understanding and being responsive to our stakeholders’ interests, we have introduced a structured stakeholder relations strategy to ensure a consistent and proactive approach to engagement across the group.

In 2017 we undertook a dedicated engagement process to develop a baseline appreciation of stakeholders’ perceptions regarding our existing engagements, and to identify opportunities to foster increased inclusivity. Since October 2018, we have been working with various stakeholder groups to develop and implement site-specific stakeholder engagement plans. During 2020, we spent more time in our host communities undertaking social-mapping exercises. The results of these exercises have enabled us to be more responsive to specific community needs, and to co-create impact programmes with communities to bring about mutually agreed change. In the table below we identify those stakeholder groups that have a substantive impact on our ability to create value, briefly outlining their contribution to value creation, our means of engaging with them, and each stakeholder group’s primary interests relating to our business activities. Although we appreciate that there is often substantial diversity of perspective and interest within each group, we believe that the interests listed below are a sufficiently accurate reflection of each group’s most material interests regarding Tiger Brands’ activities and performance.

Employees

Employees Provide the experience, productivity and skills needed to deliver our strategy

How we engage

  • CEO and executive-led engagements
  • Category executives and factory management-led engagements
  • Internal website
  • Data-free mobile communication application
  • Newsletters and email
  • Internal videos
  • News boards
  • Employee hotline
  • Employee engagement sessions
  • One-on-one consultations
  • Thrive employee wellbeing programme communications
  

Material interests

  • Talent and career development
  • Employee relations
  • Inspirational leadership and transparency
  • Enabling environment
  • Teamwork and collaboration
  • Protocols, practices and processes
  • Diversity and inclusion
  • Employee safety during Covid-19
  • Rationale for commercial decisions in particular disposals
  • Ongoing Class Action litigation
  
  Our response  
  › Launched partnership engagement sessions with our union leaders led by the CEO and executive team on business and employee matters; in future these will be conducted biannually. (See Great people)  
  › The Voice of Tiger, which is our company experience and engagement pulse survey launched in November 2020. The survey gives all our employees a confidential, digitally-enabled platform to give feedback to Tiger Brands on how they experience the organisation, culture and leadership by responding to a set of benchmark questions. The results will be used to design actions to further progress our culture transformation journey, improve employee experience and accelerate winning performance across the organisation. The comprehensive survey will be conducted once a year going forward but regular short and focused dip-stick surveys will take place quarterly.  
  › Continued with Heart of the Tiger employee dialogues on values and winning behaviours.  
  › Revived and communicated our employee value proposition and employer brand. (See Great people)  
  › Completed fit-for-future organisational restructure. (See Great people)  
  › Key changes made to business leadership.  
  › 79% of leadership positions filled internally, with African employees comprising 95% of internal promotions this year; 46% female and 54% male. (See Great people)  
  › Prioritised safety of work force and employee wellbeing over the period of National Disaster. (See Great people)  
  › Regular communication through various channels and platform.  
       

Customers

Customers Our retail and wholesale customers, provide consumers with ready access to our product

How we engage

  • One-on-one personal engagements
  • Business forums
  • Collaborative forecasting and joint business planning
  

Material interests

  • Product provided on agreed terms
  • Trading terms that are fair, equal and available to all
  • Portfolio rationalisation in the context of disposals
  • Optimal consumer propositions
  • Reducing packaging footprint
  
  Our response  
  › Played a vital role in ensuring the ongoing availability of essential food items during the period of National Disaster, especially during the initial lockdown period. (See Grains and sustainability report)  
  › Various customer engagements to ensure clarity on expectations, including through jointly developed business plans. Launched the Perfect Store Initiative. (See Our value contribution in 2020 )  
  › Created Tiger hampers in various configurations cognisant of store formats, time of month and shopper specific.  
  › Exploring alternative sampling options such as new pack sizes, online partners and digital solutions.  
  › Working closely with customers to reduce packaging footprint.  
       

Media

Media Contribute to brand reputation and enhance stakeholder awareness of our products and performance

How we engage

  • CEO/CFO engagement as appropriate
  • Dedicated media section on our website
  • Media releases
  • Social media presence
  

Material interests

  • Increase access to management and information
  • Media governance
  • Fair treatment of consumers
  • Food security
  • Ongoing Class Action litigation with potential liabilities
  • Operational performance
  
  Our response  
  › All queries on consumer-related enquiries addressed within specified timeframes.  
  › Strengthened media governance and protocols.  
  › Enhanced media monitoring and analysis.  
  › See earlier responses on consumers.  
  › Interviews, press statements and opinion editorials.  
  › Interviews, engagement with legal representatives and press releases.  
  › Access to the CEO and press releases.  
       

Consumers

Consumers By purchasing our products, and believing in our brand, they provide the basis for revenue growth

How we engage

  • Dedicated consumer section on website
  • Packaging information
  • Consumer care line
  • Digital platforms
  • In-store engagement
  • Focus groups
  • Social media
  

Material interests

  • Food safety
  • Product quality
  • Product affordability
  • Health and nutrition
  
  Our response  
  › Implemented a detailed quality strategy to ensure a robust integrated management system. (See Be efficient and sustainability report)  
  › Achieved external certification of all manufacturing facilities. (See Be efficient)  
  › Introduced Tamper Evident packaging innovation on Albany bread.  
  › Provided food security information during Covid-19. (See Chief executive officer's review)  
  › Strong focus on ensuring that product quality meets or exceeds consumer expectations achieving reductions this year in customer complaints and market place incidents. (See Be efficient)  
  › Strive to mitigate inflationary pressures through cost-saving initiatives and operational efficiencies. (See Be efficient)  
  › Specific packs for discount channels. (See Drive growth)  
  › Launched value brands such as Induna Maize. (See Drive growth)  
  › Launched several healthier/more nutritious products including Jungle cereal bars, Purity snacks and Koo Black Beans. (See Drive growth)  
  › Tips on nutrition and home cooking.  
       

Government

Government Provides the regulatory framework and informs the socio-economic context essential for our activities

How we engage

  • One-on-one engagements
  • Engagements on draft regulations
  • Public forums
  • Industry consultative bodies
  • Parliamentary processes
  

Material interests

  • Consumer and Customer Protection and National Disaster Management Regulations
  • Growth and development of local agricultural sector
  • Impact of portfolio rationalisation on labour
  
  Our response  
  › Supported government’s broader national effort by deferring price increases of products for the initial period of the lockdown.  
  › Initiated engagement with the regulators around the future construct and interpretation of the Consumer and Customer Protection and National Disaster Regulations.  
  › Active partnerships to promote agri-sector development and smallholder farmers. (See Sustainable future and sustainability report)  
  › Engaged with local and relevant national government departments on developments with regards to the impact of disposals.  
       

Suppliers

Suppliers Provide the services and raw materials that form the basis of our products and activities

How we engage

  • Supplier forums
  • Site visits
  • Supplier assessments
  • One-on-one engagements
  • Website
  

Material interests

  • Timely payment and fair terms
  • BEE/SME supplier development
  • Health and safety standards
  
  Our response  
  › Negotiate with strategic suppliers to secure requirements at reasonable cost.  
  › Strong drive in place to promote supplier and enterprise development, investing in smaller suppliers to diversify the supply base and create real transformation to our supplier base. (See Be efficient and sustainability report)  
  › Engage with relevant suppliers on appropriate health and safety standards.  
       

Investors

Investors Provide the financial capital needed for long-term growth

How we engage

  • Annual and interim reports
  • One-on-one meetings, non-deal roadshows, investor conferences
  • SENS announcements
  • Dedicated investor relations
  • Website
  

Material interests

  • Gross margin compression due to poor strategy execution
  • Ability to sustain premiums in a value-orientated economy and the loss of market share particularly to private label
  • Supply chain disruptions
  • Ongoing Class Action litigation with potential liabilities
  • Company culture, talent acquisition, succession and retention
  • Dividend policy in the context of a strong balance sheet
  
  Our response  
  › Implemented a fit-for-future operating model that enables a focused and relevant solution for each of our categories. (See Great people)  
  › Acceleration of portfolio optimisation initiatives. (See Financial review)  
  › Resolution of dispute in Nigeria supporting recovery in Export performance. (See Financial review)  
  › Drive relevance in value segment by building clear benefits of our current brands. (See Drive growth)  
  › Meet the needs of consumers seeking value using innovation and renovation. (See Drive growth)  
  › Select commercially viable opportunities to manufacture private label. (See Drive growth)  
  › Specific commitments to drive efficiency, maximise product availability and deliver customer service excellence. (See Be efficient)  
  › Further optimised our processes with the aim of ensuring optimal on-shelf availability and meeting speed-to-market deadlines for innovation execution. (See Drive growth)  
  › Initiated a new capex approval process introducing a capital review committee with the aim of expediting approvals and improving overall project delivery. (See Be efficient)  
  › Frequent updates on the Class Action process providing background and context on developments. (See Chairman's review)  
  › Newly appointed chairman designate and additional members with extensive expertise in leading innovation and growth in the FMCG sector globally. (See Our leadership team)  
  › Employer branding campaigns were well received, with 140% increase in followership on Tiger Brands’ LinkedIn profile. (See Great people)  
  › Voted number 1 Graduate Employer of Choice in the manufacturing sector, and second in the FMCG sector in the South African Graduate Employers Association 2020 survey. (See Great people)  
  › Certified as Top Employer. (See Great people)  
  › Improved succession ratio from 1:1 to 3:1 for senior executive leadership roles. (See Great people)  
  › After withholding the interim dividend, resumed dividend payments with the total ordinary dividend in FY20 aligning distributions with the dividend policy of 1.75x cover based on full year headline earnings. Paid a special dividend in FY19 and FY20. (See Financial review)  
       

Communities

Communities Provide the social capital and licence to operate for the business to succeed

How we engage

  • Community social mapping to identify opportunities to share value
  • Community mobilisation and interaction on SED projects
  

Material interests

  • Food security and related nutrition issues
  • Food support during Covid-19
  • Stimulate economic activity to support and sustain community enterprise development and job creation
  
  Our response  
  › Partner with government and developmental agencies to promote nutrition, health and education, and contribute to community development and poverty eradication. (See Sustainable future and sustainability report)  
  › Freed-up R3,5 million in capital through voluntary salary sacrifices from our senior leadership  
  › Assisted our partners with an additional 12 000 food hampers through our Family Food Programme, with a total of 105 648 hampers distributed this year  
  › Adapted our School Nutrition Programme to distribute 15 000 food hampers to homebound school children (Tiger Brands Foundation)  
  › Continued our support of 4 500 students through our Plates4Days programme  
  › Donated R9 million worth of bread to various organisations, including to frontline healthcare workers at Charlotte Maxeke and Nelson Mandela Children’s Hospitals and others  
  › Re-focused our distribution of near-dated stock and donated 1 000 units of hand sanitiser and 10 000 food hampers to vulnerable communities by Food Forward SA  
  › Supported job creation through the manufacture of Tiger Brands Covid-19 Safety Packs (See sustainability report)  
  › Initiatives in place on enterprise and supplier development, and community investment. (See Sustainable future and sustainability report)