OUR BUSINESS MODEL
OUR PURPOSE
- Nourish and nurture more lives everyday
KEY RESOURCES
- Experienced, diverse leadership team and skilled employees underpinned by strong governance structures
- Reliable and sustainable access to primary agricultural products (including wheat, rice, maize, oats, sugar and sorghum), other ingredients, packaging, energy, fuel and water
- Well capitalised manufacturing plants, supported by efficient and effective distribution and logistics networks
- Strong and trusted corporate brand; positive supplier and customer relations and constructive relationship with government, regulators and host communities
- Continuous investment in our brands through research and development, marketing investment, and innovation informed by strong consumer insights
- Access to financial capital, through strong cash generation and enhanced by superior investor returns and sustained market confidence
KEY RELATIONSHIPS
- Employees and trade unions
- Customers
- Consumers
- Government
- Investors
- Suppliers
- Communities
- Media
GOVERNING THE VALUE CREATION PROCESS
The board represents a range of corporate and strategic business leadership skills, diversity and independence to appropriately exercise sound judgement and leadership in directing Tiger Brands to create value for all stakeholders.
Our operating environment
Trends impacting value:
- A challenging macro-economic environment
- Shifting customer and consumer dynamics in an increasingly competitive environment
- Heightened stakeholder expectations on ESG performance
Sensitivity analysis
Tiger Brands’ cost base is highly sensitive to exchange rate volatility with ~70% of our costs directly or indirectly exposed to exchange rates. Price/volume management is therefore a key strategic lever. In an inflationary environment, for every 1% price increase not implemented, the group requires 4% volume growth to offset the impact of higher input costs.
Material risks
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Industrial action | |
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Third party supplier risk |
| Procurement | Manufacturing | Research and development | Packaging and logistics | Marketing, branding & distribution | ||||
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Our revenue streams
Our revenue streams comprise product sales from:
- Grains: 46%
- Consumer Brands: 36%
- Home and Personal Care: 5%
- Exports and International: 11%
Material revenue differentiators
- The group’s long-standing market-leading position in branded food and beverages
- Our “Billion-Rand Brands”, many of which are rated first or second in their categories and have received many external awards as 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 our category strategies
Our cost streams
Our most significant cost streams are:
- Raw material procurement
- Sales and distribution expenses
- Marketing expenses
- Maintenance and upgrading of plant and equipment
- Food quality and safety
- Employee wages and benefits
- Electricity and fuel
- Regulatory compliance costs
- Other administrative costs
Material cost differentiators
- Our vertical supply chain
- Standardisation and simplification of group processes, systems and practices
- Centralised procurement function leveraging scale both internally and externally
OUR PRODUCTS (OUTPUTS)
- Grains
- Groceries
- Baby Nutrition and wellbeing
- Beverages, Snacks & Treats
- Home and Personal Care
OUR IMPACTS (OUTCOMES)
Significant impacts (positive and negative) include:
- Consumer nutrition and health
- Natural resource use
- Food and packaging waste
- Employment (direct and indirect)
- Development of small business
- Government tax revenue
- Shareholder returns
- Investment in infrastructure, plant and equipment.