2022 Health and nutrition product launches:
We are prioritising new product development in health and nutrition within our existing brand portfolios, and through the launch or acquisition of new brands, as well as through exploring entirely new product territories.
We have taken deliberate steps to prioritise health and nutrition in our programme to deliver growth through innovation. Our innovation capability is focused on new product development, and health and nutrition is one of our core focus areas see IR. We have a world-class innovation toolbox and commercialisation process, including recently refreshed product-design standards, “health and nutrition by design” framework, fortification decision toolkit, and updated EWLW nutrition criteria. Our innovation management process includes thorough checks from a nutritional, regulatory and legislative perspective, including in relation to responsible marketing and labelling see responsible marketing, while also driving speed to market, agility, and execution discipline.
TIGER BRANDS' FIRST INVESTMENT IN A PLANT-BASED FOOD COMPANY
Our R100 million Venture Capital Fund was set up in mid-2021 to support up-and-coming consumer brands in the food and beverage sector. This forms an important part of our strategy to stay ahead of the curve in terms of key consumer trends, to ensure that we are better able to address the evolving needs of our consumers, and to give us access to exciting new developments in emerging brands and technologies. The fund’s first investment, made in March 2021, was in Herbivore Earthfoods, a company founded in 2014 with the goal of making healthy, plant-based foods accessible and affordable in South Africa. Their first product was kale chips, and their product lines now include dairy-free milk alternatives and desserts, confectionery and protein alternatives.
Through our investment in Herbivore Earthfoods – which includes financial capital, as well as support in the form of distribution, brand building, and research and development – we are partnering with the company to provide the necessary scale to make plant-based foods more accessible for the South African consumer, an important part of delivering on our purpose to nourish and nurture more lives every day. Since our investment, Herbivore has acquired additional machinery to increase capacity and drive innovation, with their recent crumbed range launch and additional dairy-free offerings gaining traction. The partnership with Tiger Brands has enabled the company’s first foray into the food service and quick service restaurant market, leveraging the strategic expertise of our out-of-home team. This is a market we believe will be core to the growth of the segment. We are encouraged by the continued increase in demand from consumers for plant-based meat and dairy alternatives, and confident in the Herbivore team’s ability to deliver these at affordable prices.
The Venture Capital Fund has a strong pipeline in health and nutrition, and looks forward to executing these opportunities once we have conducted our due diligence.
We have made some important strides in 2022. We have put more weight behind the commercialisation of our EWLW endorsed products, improved our project tracking process, and initiated a monthly workshop with relevant Brand teams to ensure that all brand-related health and nutrition activations are aligned with EWLW. Our health and nutrition innovations continue to grow within our overall innovation funnel, and we delivered seven product launches during the year and generated revenues in excess of R500 million from our health and nutrition focused innovation launches in 2022.