Sustainability report: a review of Tiger Brands’ environmental, social and governance (ESG) performance

Health and nutritionDownload pdf version

         

WE ENABLE CONSUMERS TO IMPROVE THEIR HEALTH

South Africa's population is one of the least healthy globally, characterised by high levels of obesity, lifestyle-induced non-communicable disease (NCD) and persistent hunger and malnutrition, exacerbated by Covid-19.

Our health and nutrition agenda is integral to our corporate purpose of nourishing and nurturing more lives every day. Health and nutrition has been identified as one of three key strategic innovation growth drivers in the business. While remaining responsive to other key market trends, we can both grow our business and contribute meaningfully to the achievement of our priority SDGs 2, 3 and 12.

Covid-19 has focused even more attention on health and wellness, as well as the value of a healthy lifestyle, but the economic fallout from the pandemic means that South Africans are likely to have less disposable income in the coming years. Middle and higher-income consumers will continue to shape more of their purchasing around health concerns, but it is likely that value purchasing behaviour will predominate across most income groups (see IR). The opportunity for Tiger Brands is to improve the accessibility and affordability of its healthier products for those with lower disposable incomes but who are nonetheless health conscious.

We are committed to enabling consumers to improve their health and wellbeing by providing affordable good nutrition.

Our key initiatives to deliver on this commitment:

  • Develop nutritional standards for our products that meet or exceed globally recognised nutritional guidelines
  • Develop more nutritious, affordable food products, including fortification of new and existing products
  • Leverage our brand and marketing activities to promote consumer nutrition and health awareness and inspire positive behaviour change
  • Play a leading role in modern food labelling practices.

Developing more nutritious, affordable products

Consumer-based innovation is a core priority for growing our business (see IR), and we see valuable opportunities in leading the health and nutrition agenda in South Africa and across the continent. We are looking to realise these commercial opportunities through our health and nutrition strategy, and are building a strong innovation pipeline that looks to combine health and nutrition with trends for convenience, affordability and value.

Our health and nutrition strategy has been in play for more than 18 months and remains highly relevant given the state of nutrition in South Africa (see above) and the pending labelling and marketing regulations (see below). We have recently revised the strategy to include a stronger focus on commercialisation, and expanded our management framework, to drive stronger execution on this portfolio and provide clear internal protocols for developing healthier products (see IR).

We provide affordable nutritious products

DEVELOPING NUTRITIONAL STANDARDS FOR OUR PRODUCTS

Malnutrition affects a significant proportion of the populations we serve. In this context, manufacturing quality staple foods, such as bread and maize meal for lower-income households, comes with additional responsibility for supporting nutrition outcomes.

We monitor advances in nutrition and broader public health issues, including through the World Health Organisation (WHO) and South African Department of Health (DOH), and regularly review our nutritional standards, so that our products meet or exceed globally recognised guidelines.

In 2020, we refreshed the EWLW programme and updated the EWLW nutritional standards to align with globally recognised guidelines. These updated standards have since been formalised through the NICUS, and we have arranged to have these standards reviewed through NICUS every three years. We have introduced a three-tier approach to categorising the nutritional value of our products: indulgent; improved-for-you; and good-for-you, and have begun to assess our product range against the set criteria.

We have taken deliberate steps to prioritise health and nutrition in our programme to deliver growth through innovation (see IR). Innovation processes have been synced to sales and operations processes, and we are targeting innovations with the greatest potential for impact. Health and nutrition impact is a priority focus of our innovation activities, and we have developed new product-design standards, including an R&D health and nutrition by design framework, fortification decision toolkit and updated EWLW nutrition criteria. We have commenced implementation of a new PLM system, which will help us track the design and development of products and monitor their performance. The data captured through the PLM will enable us to establish a 2021 baseline and set a 2030 target for nutritious products as a percentage of our portfolio.

We remain in full compliance with the latest sodium reduction regulations and health promotion levy in South Africa. We have implemented sodium and sugar reductions in alignment with national regulations across the majority of our product portfolio, including significant sugar reductions in products across Bakery, Cereals and Beverages. While chocolate products need fat and sugar as necessary ingredients, there are opportunities for reductions in sodium, sugar and saturated fats across our Culinary category. In 2021, we focused on identifying these opportunities, with the priority on addressing the nutritional profile of our top-selling products in this category.

We have commenced with several health and nutrition product renovations in 2021 and anticipate becoming more active in this space as the front-of-pack labelling regulations in South Africa near approval.

In 2021, we launched the following nutritious and affordable products:

  • In January 2021, we launched Purity Junior Smoothies to support toddler nutrition
  • In March 2021, we relaunched Brookes Low-Cal Fruit Squash Concentrate, which contains on average 95,6% less kilojoules than 100ml of Brookes Oros Original Orange Squash
  • In March 2021, we launched Ingram's Hand Sanitisers to maintain hygiene in the face of Covid-19.

Fortification of new and existing products

We fortify staple products like maize meal and certain flours (and therefore certain breads) in alignment with SA regulations. We fortify these staple foods with key vitamins and minerals, including vitamins A, B1, B2, B3, B6, B9 (folic acid), iron and zinc. Amendments to the national regulations stipulating the amounts of these vitamins and minerals, including the appropriate type of iron to be used, are currently pending approval, and we are contributing to this process. We will ensure that our affected products comply with these new regulations once published.

We voluntarily enrich additional products across cereals, bakeries, and baby food, including Morvite, certain Jungle cereals, and Ace Instant, with micro-nutrients commonly deficient in South African diets. We also develop fortified products that target a specific nutritional health improvement, such as Purity Junior snacking cereals and biscuits, which are enriched with B-vitamins to assist in releasing energy, and which have been specifically developed to provide micronutrients that support immune function. Currently, we have delivered micro-nutrient enrichment across >30% of our portfolio (as measured by net sales), predominantly in our Grains products.

In addition to the inclusion of micro-nutrients in foods, we are continually looking for ways to improve our product recipes. We have relaunched products in our baby portfolio where citric acid is replaced with lemon juice concentrate, and chemically modified maize is replaced with tapioca flour.

WE LEAD ON NUTRITION LABELLING

We are committed to playing a leading role on nutrition labelling to make it easier for consumers to make informed choices about our food products and their health.

Basic nutrition labelling and the declaration of certain ingredients and allergens are regulated by South Africa's national Department of Health, through the regulations relating to the advertising and labelling of foodstuffs. We remain in full compliance with these requirements. Beyond compliance, we declare the presence of beta glucan (insoluble fibre) in our Jungle Oats, Jungle Oats Instant and Jungle Oats Bran cereals in relation to heart-health benefits, and label the glycaemicindex (GI) and glycaemic-load (GL) of Albany Low-GI breads in relation to sustaining energy levels. We declare GI and GL for all formulated products where a low GI claim is made.

INSIGHT

THE EAT WELL LIVE WELL PROGRAMME

www.ewlw.co.za

Tiger Brands launched the Eat Well Live Well (EWLW) programme in 2009 to help South Africans make healthier food choices for a better life on any budget.

The EWLW brand is committed to providing consumers with easy-to-understand nutrition information, and wholesome recipes, using EWLW-endorsed products to support government's efforts of reducing the prevalence of non-communicable diseases. Making healthy, or healthier, choices is often difficult, expensive and time consuming. Eat Well Live Well seeks to solve this tension by making consumers' journey less confusing and more empowering, so that a healthy lifestyle becomes an internalised part of their lives.

Tiger Brands was the first South African company to voluntarily make nutrition information available on the back-of-product labels. We designed and implemented the EWLW nutrition-labelling system that includes the guideline daily amount (GDA) now familiar on a number of Tiger Brands products. In FY15, we started to introduce the Be-Nutrient-Wise GDA system which appears on the front of some of our product labels. This newer logo alerts consumers to be mindful of the five key nutrients that have a proven impact on non-communicable diseases, such as heart disease, type 2 diabetes, obesity and some cancers.

The EWLW programme was refreshed and relaunched in 2020. We continue to develop and evaluate "good for you" products that carry the EWLW logo, and maintain full adherence to our EWLW nutritional profile criteria across more than half of our portfolio (when measured against net sales values). Current examples of products that meet the nutritional criteria of the programme, include: Albany: low GI variants, and 100% smooth wholegrain brown bread; KOO: Baked Beans Lite; All Gold: Tomato Sauce Light; Black Cat: no-sugar, no-salt variants; Tastic Wholegrain Brown Rice; and Jungle Oats. All the EWLW endorsed products are listed online at www.ewlw.co.za/products.

The relaunch of the programme has been followed by the release of two State of Nutrition reports in the financial year, commissioned by the EWLW Institute. The State of Nutrition Report 2020 helps build understanding of what constitutes balanced nutrition and a healthy lifestyle. The State of Nutrition in South Africa Report 2021 (https://www.ewlw.co.za/research) highlights improvements and challenges to our national health and wellbeing in South Africa, with an emphasis on youth. Both reports make a valuable societal contribution in communicating how the foods we eat affect our health, development and functioning throughout life. The report launch events received support from the Department of Health (DOH) and Department of Forestry, Fisheries and Environment (DFFE), and the initial announcement reached over 11 million people through traditional news media, healthy lifestyle publications, paid digital and social media.

The EWLW website provides a digital reference for healthy living, and a portal for interacting with others and accessing support from our nutritionist. The brand is active on Facebook and Instagram, and we have approximately 130 000 followers to date, at www.facebook. com/EatwellLivewellSA.

Moving into 2022, we aim to build on this year's momentum in the EWLW programme and target meaningful developments that will raise the visibility of nutritional information and the health benefits of our products.

New front-of-pack nutrition labelling regulations are forthcoming in South Africa, and we plan to fully comply with these requirements. In preparation, we have set an internal target to maintain full adherence to the on-pack nutrition labelling requirements of our EWLW and Be-Nutrient-Wise initiatives. Under the EWLW programme, we continue to re-structure label architectures and artwork across various brands to accommodate more nutrition information. We have launched back-of-pack portion-control messaging on Jelly Tots, mmmMallows and Allsorts products in our Snacks & Treats category, and are exploring the same for chocolates.

WE LEVERAGE OUR BRAND TO INSPIRE CHANGE

As Africa's biggest food company, we are aware of the power of our brand, and the significant role that our products play in the everyday nutrition, health and wellbeing of people. With many historic and well-loved household brand names in our portfolio, we are also aware of the unique position we are in, to leverage these brands to inspire positive behaviour change among consumers. We are committed to building the integrity of our brands, prioritising the delivery of healthier product options, and to helping consumers make healthier food and product choices.

We are working in partnership with key stakeholders, including government, academia and NGOs, to leverage our brands for positive change through the EWLW programme. We are building brand-value and trust by making healthier choices easier for the consumer to make. We provide healthier food options, take a lead on national nutritional guidelines, and drive health and nutrition awareness and education through on-product activations in schools and communities.

We have begun to re-position key brands and products in relation to their flagship health and nutrition attributes. We have introduced clear and simple on-product health claims for Jungle (for heart health), Ace maizemeal (for fibre), Morvite (for immunity) and Albany (for enhanced on-pack communication of nutritional benefits). In 2021, we introduced the KOO Colour Your Plate initiative to promote the health benefits of eating more fruit and vegetables.

We are working towards setting a 2030 target for health and nutrition marketing activations and measurement of impact. We made some progress this year, with the launch of two Eat Well Live Well State of Nutrition in South Africa reports (see below). We do not currently track the proportion of our marketing spend that goes towards the promotion of healthier products, but we are looking to track this in future. We spent a total of R3,3 million on EWLW marketing activations.

INSIGHT

GETTING SOUTH AFRICAN'S HEALTHY WITH "COLOUR YOUR PLATE WITH KOO"

KOO has launched a new TV show in partnership with SABC 2 to jumpstart their KOO 5-A-DAY Campaign, which aims to get South Africans eating more balanced and healthy meals through the inclusion of at least five servings of fruit and vegetables per day.

Colourful fruit and vegetables are not only beautiful – bringing pleasure to the experience of a meal – but informative. The colours of fruit and vegetables are indicative of the nutrients, vitamins and minerals they contain. This is the premise of the new campaign.

The new 30-minute weekly reality TV show, Colour Your Plate with KOO, covers the search to find South Africa's next cooking star, whose culinary skills inspire you to brighten your plate and balance your health. Each week the show features five amateur chefs participating in a cook-off to produce a 10-course menu featuring a hero fruit or vegetable.

The contestants' healthy and balanced meals are judged by award-winning local celebrity chef Reuben Riffel; media personality and businesswoman Basetsana Kumalo; and KOO's nutritionist Arthur Ramoroka.


ADMINISTRATION Expand

TIGER BRANDS LIMITED
Incorporated in the Republic of South Africa
Share code: TBS
ISIN: ZAE000071080
Registration number: 1944/017881/06

COMPANY SECRETARY
JK Monaisa

REGISTERED OFFICE
3010 William Nicol Drive
Bryanston
Sandton

POSTAL ADDRESS
PO Box 78056, Sandton, 2146
Telephone: +27 11 840 4000

AUDITORS
Ernst & Young Inc.

PRINCIPAL BANKER
Rand Merchant Bank

SPONSOR
JP Morgan Equities South Africa Proprietary Limited

SOUTH AFRICAN SHARE TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue
Rosebank, 2196
Private Bag X9000, Saxonwold, 2132

AMERICAN DEPOSITORY RECEIPT (ADR) FACILITY
ADR Administrator
The Bank of New York Mellon

INVESTOR RELATIONS
Nikki Catrakilis-Wagner
Erene Kairuz
Telephone: +27 11 840 4000

SUSTAINABILITY
Stiaan Wandrag
stiaan.wandrag@tigerbrands.com

WEBSITE ADDRESS
www.tigerbrands.com

CONTACT DETAILS
Companysecretary@tigerbrands.com
Investorrelations@tigerbrands.com
Consumer helpline: 0860 005342


FORWARD-LOOKING INFORMATION

This report contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations at the time of finalising the report. Actual results may differ materially from these expectations if known and unknown risks or uncertainties affect the business, or if estimates or assumptions prove inaccurate. Tiger Brands cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The company assumes no obligation to update or revise any forward-looking statements, even if new information becomes available as a result of future events or for any other reason, save as required by legislation or regulation.