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Tiger Brands Limited

Sustainablility report

NOTICE OF AGM

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CRITICAL ANCHORS

FOOD SAFETY AND QUALITY

Tiger Brands is committed to superior product quality and consumer safety, and we are determined to continually raise the bar on our performance and develop capabilities that differentiate us from our competitors.

Millions of people rely on Tiger Brands products for their daily nutritional and health needs, including through our home and personal care products. Product safety (including food safety) and quality is a non-negotiable foundational aspect of our business, and a core organisational value. On the back of the listeriosis outbreak in 2018, we have made significant strides at strengthening our food safety and quality systems and processes, advancing our contribution to enhancing food safety in South Africa, and improving our food safety and quality performance.

Approach

Since 2019, Tiger Brands has been a member of the European Hygienic Engineering and Design Group (EHEDG), and pays an annual corporate subscription fee. EHEDG is a global consortium of food industry organisations, including Nestlé and Unilever, who come together to formulate, review and update guidelines on hygienic design and food safety and quality. These guidelines are very detailed and provide helpful guidance and expertise that informs Tiger Brands’ approach to enhance food quality and safety.

We align and comply with all relevant food-safety related legislation and regulations to retain the government certificates of acceptability for all our manufacturing factories. We have an established foundation in quality and product safety management that is aligned to applicable legislation and regulations. Our manufacturing factories undergo external certification and surveillance audits annually by a global certification body. We validate the effectiveness of our product safety and quality management systems through internal and independent third-party certification audits, and we address any identified non-conformances and share lessons learnt to further improve our processes.

Management

Our food quality management system includes a manufacturing, excellence, customs and practices (MECP) management framework, which we are currently establishing across 10 priority sites. We have started implementing the MECP framework by establishing foundational pillars of MECP practice, one of which is quality (see ethical supply chain). All our manufacturing units are certified to the Global Food Safety System Certification 22000 (FSSC 22000) standard, which is recognised by the Global Food Safety Initiative (GFSI). This excludes three manufacturing units which are currently on Hazard Analysis and Critical Control Points (HACCP) certification and will progress to FSSC 22000 certification by mid-2023. Additionally, all our factories conduct GFSI self-assessments on a quarterly basis. As part of our certification requirements and commitment to consumers, we conduct internal audits and risk assessments on an ongoing basis at all our manufacturing facilities, and identify specific opportunities to mitigate or eliminate the risks identified. The internal audits and risk assessments cover elements related to products, processes, equipment and infrastructure.

Our centralised food safety and quality system, embedded at group level, provides the policy, strategy, direction and support needed to empower each employee to take personal responsibility for food safety and quality, particularly at the operations level. The chief manufacturing officer is responsible for executing the food safety and quality system, with support from the quality director. The board exercises ultimate oversight on food safety and quality through the risk and sustainability committee.

Our key policies

  • Group quality and product safety policy

Our quality strategy outlines short, medium and long-term priorities that drive improvements in our end-to-end management of food safety and quality, across functions. We aim towards a fully integrated system, where robust and contemporary processes, continuously updated, are supported by talented and well-trained people who work with inspiration in a culture of quality excellence. In line with our strategy, we set annual measurable product safety and quality objectives for all our operations, and at group level, to ensure continuous improvement and compliance with all standards. We track performance against these targets using a quality scorecard, which we have standardised across all our sites and categories, with a monthly reporting cycle on performance.

We hold ourselves, our suppliers, and third-party manufacturing partners to the same stringent standards by implementing ongoing risk assessment, gap closures and certification. In 2022, we strengthened our supplier quality assurance (SQA) programme, including our risk assessment process, across raw materials, packaging, manufacturing, hygienic design, cleaning and sanitation, finished product, monitoring and validation. Our updated approach involves multidisciplinary internal teams, which include external expert consultants, who meet weekly or bi-weekly to discuss and implement gap closure, identify capex-related issues and implementation plans to close gaps. A project management officer manages the governance of implementation plans and monitors implementation. All suppliers are required to have food safety certification, preferably a certification recognised by the Global Food Safety Initiative (GFSI), such as FSSC 22000, British Retail Consortium (BRC) Global Standards, International Featured Standard (IFS) and Safe Quality Food (SQF) Programme. Hazard Analysis and Critical Control Points (HACCP) certification is also conditionally accepted as a minimum.

The regular training of staff is a key part of our approach to ensuring effective food safety and quality management. We conduct routine food quality and safety training via our e-learning platform and onsite at all our manufacturing plants. Additional more targeted training for quality and non-quality functions is conducted as needed. We have rolled out an online tool for conducting skills assessments of the quality functions to support our identification of specific technical and behavioural training needs. Key training in 2022, included practical training in advanced hygienic engineering, FSSC 22000 train-the-trainer development, and Lean Six Sigma training as part of a project to improve bread quality. We again held a series of food safety lectures for our technical teams, delivered by Professor Gouws from the Centre for Food Safety at Stellenbosch University see below.

OUR FOOD SAFETY AND QUALITY STRATEGY

Making quality a competitive advantage for Tiger Brands
DEVELOP A WORLD CLASS QUALITY APPROACH DELIVERING THE BRAND PROMISE
  Raising the floor (Restoring basics)     Build quality capability and culture (Quality mindset)     Raising the bar (Continuous improvement)
 
  • Drive right first time innovation
  • Embed quality into management of change
  • Improve supplier quality assurance
  • Focus factories on perfect execution and consumer safety
  • Drive quality in logistics and go-to-market
  • Implement quality management IT systems for improved data management
   
  • Build quality talent pipeline, skills and knowledge
  • Build an aligned quality organisation and communities
  • Raise profile and mindset for quality throughout the organisation
  • Actively engage external entities
   
  • Bring the voice of the consumer to life across the business
  • Embed structured quality improvement through cross-functional teams
  • Embed the MECP quality pillar
  • Implement quality-related cost reduction initiatives
  • Review and build on existing group quality documentation

Product testing capabilities

We conduct all necessary product testing through in-house and outsourced facilities. In 2022, we obtained certification from the South African National Accreditation System (SANAS) against the ISO17025 standard for our Central Micro Laboratory, where we conduct microbiological testing of product samples from our inland factories.


Our testing activities include:

  • Microbiological testing at our Central Micro Lab for inland factories, or onsite for coastal factories
  • Pathogen testing (outsourced to Microchem)
  • Physiochemical testing (onsite and outsourced for more specialised testing)
  • Sensory evaluation (onsite)
  • We also conduct precautionary testing for emerging quality/safety concerns
  • A detailed description of our food safety standards is available at www.tigerbrands.com

Our key activities this year included:

  • Supplier quality management process improvements
  • Focused review of risk assessments
  • MECP quality pillar implementation at our 10 priority sites
  • Certification/re-certification of external warehouses to BRC standards
  • World Food Safety Day activations across all sites in June 2022
  • Launched a Lean Six Sigma project to address bread quality at bakeries
  • Approval and kick-off of project to improve Quality IT Systems

Performance

While we improved our performance in 2022 in certain areas of food safety and quality, we have also posted negative results in some areas. We achieved a 14% reduction in overall complaints (per million units sold), 23% reduction in the number of health-related complaints, and reduced insect complaints by 26%. Meanwhile, our negative results included one public recall, an increase of 11% on marketplace incidents, and an increase of 17% on foreign object complaints.

 OUR 2021 QUALITY PERFORMANCE
KPI 2022
target
2022 2021 2020 2019
Number of public recalls Zero 1 1 Zero Zero
Increase/(decrease) in market place incidents (%) (15) 11 (40) (25) (35)
Increase/(decrease) in complaints (%) (12) (14) (25) (5) (18)
Increase/(decrease) in foreign object complaints (%) (12) 17 (35) Data not available
Increase/(decrease) in health-related complaints (%) (5) (23) (57)
Increase/(decrease) in insects complaints (%) (12) (26) (2)

CENTRE FOR FOOD SAFETY

Stellenbosch University    

The Centre for Food Safety is an applied food-science research consortium, where Stellenbosch University researchers work together with the food industry and other stakeholders on real-world food safety challenges. The centre was launched in 2018 by Stellenbosch University together with Tiger Brands, and we continue to support the centre as a way of contributing to the advancement of food safety knowledge and practice in South Africa. The centre continues to partner with Tiger Brands on various projects, including support with microbiological risk assessments, and the provision of independent food safety research, advice and input.

 

INSIGHT

Recall of Purity Essential Baby Powder

In 2022, we instituted a recall of Purity Essential Baby Powder products. The recall was instituted after trace levels of asbestos were detected in test samples of a batch of pharmaceutical-grade talc powder used in the production of the baby powder. The levels of asbestos detected in the test samples were so low that the trace amount could not be quantified by our standardised testing methodology. We instituted the recall as a precautionary measure to protect consumer health and uphold our quality standards.

Clear learnings have emerged from a root cause analysis of the incident, and a thorough review of our risk assessment processes is underway across our product categories.

This review process is expected to be completed by the end of December 2022, and will assist greatly in avoiding similar incidents in future.

 

A 2022 update on the listeriosis class-action lawsuit

The 2018 listeriosis outbreak was a tragic event in South Africa. We cannot overstate the significant and far-reaching consequences of the listeriosis crisis, particularly on the victims of the outbreak and their families. A class-action lawsuit was instituted against the company for its alleged role in the outbreak. Tiger Brands remains committed to participating fully in the legal process, which will determine whether the company is liable for the outbreak. We will continue to follow due-process to ensure that the lawsuit is resolved expeditiously and fairly within the confines of the legal process, and that a conclusion is reached in the shortest time possible in the interests of all parties, particularly the victims of listeriosis. In November 2020, Tiger Brands sold its value-added meat products (VAMP) business.

Participating in the legal process

Various third parties have contested subpoenas issued by Tiger Brands for disclosure of information related to the testing for and incidence of listeriosis. On 23 June 2020 the High Court in Johannesburg ruled in favour of Tiger Brands, compelling the National Institute for Communicable Diseases (NICD), the South African Bureau of Standards (SABS), two accredited national laboratories and various meat producers to provide critical epidemiological information required for the listeriosis class-action lawsuit. All of the third parties (except the SABS) who applied for leave to appeal the decision were granted leave to appeal to the Supreme Court of Appeal (SCA). On 4 February 2022 the SCA handed down its judgment in which it overturned the earlier order of the Gauteng Local Division of the High Court. The company continues to engage with the plaintiffs’ attorneys as part of pre-trial preparations in efforts to ensure a speedy resolution of the class action.