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.

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Key inputs

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

  1. Albany route-to-market
  2. Negative impact of Covid-19
  3. Business continuity vulnerabilities
  4. Operating environment
  5. Food safety and product quality
  6. Occupational health and safety
  7. Information and cyber security
  8. Data and information risk
  9. Attract and retain critical skills
  10. Intensifying competition

Wheat
Rice
Maize
Oats
Sorghum
Tomatoes
and beans
Fruit
and nuts
Sugar
Cocoa

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

  • Provision of affordable nutrition
  • Economic opportunities across value chain
  • Community impact of operations
  • Stable operating context contributing to sustained market demand
See outcomes

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
See outcomes

OUR BRAND AND REPUTATION

  • Investment in maintaining brand equity
  • Innovation launches including in health and nutrition, value and convenience
See outcomes

MANUFACTURED CAPITAL

  • Investment in modernising plant and equipment
  • General wear and tear/depreciation
See outcomes

FINANCIAL CAPITAL

  • Dividends
  • Return on net assets
  • Return on equity
  • Return on invested capital (ROIC)
  • Favourable funding terms
See outcomes

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
See outcomes

Key outcomes