INTEGRATED ANNUAL REPORT 2023
For the year ended 30 September 2023
For the year ended 30 September 2023
Informed by a thorough analysis of global, regional and local trends specific to the FMCG and retail sectors, we have prioritised three growth platforms aimed at driving broader consumer and shopper relevance and increasing market success: we will be delivering market-leading solutions for the value-seeking consumer, driving education and accessibility of our portfolio to meet the nutritional needs of consumers, and working to own all the relevant demand spaces for consumers in the snackification segment.
Our ambition is to become the leading choice for value-seeking consumers by enhancing the affordability and accessibility of existing and new product offerings through appropriate pack, price and channel architecture, harnessing effective distribution channels, and realising opportunities for product and packaging innovation, supported by value-led marketing and consumer engagement campaigns, as well as our broader cost reduction initiatives.
We have made further progress this year in these ambitions, delivering value-for-money innovations in selected categories to ensure more affordable price points, including new value packs in beverages as well as new value offerings in groceries and beverages. We have identified a pipeline of value-led innovations, including new value packs in snacks and treats, and value offerings in groceries. These innovations will be aided by our continuing activities to enhance efficiency and reduce costs, as well as by delivering on our goals to compete more effectively in the deep discounter channel.
Informed by renewed insight and analysis, we have refreshed our strategy to best defend our product offerings against the increasing threat of private labels by further investing in our brands, building our innovation capabilities, protecting our IP, and offering consumers choice through our premium and value offerings. We will only manufacture private-label products in selected categories where we see clear, long-term strategic benefit, informed by a thorough cost-benefit assessment.
As Africa's largest food company, our health and nutrition agenda is integral to our corporate purpose of nourishing and nurturing more lives every day. In addition to the broader socio-economic and moral imperative of driving positive change in health and nutrition, we believe that there are valuable opportunities for business growth in leading this agenda in our markets.
In the lower-income market, we aim to democratise nutrition by driving awareness, accessibility and affordability of our healthy food portfolio. We are amplifying our nutrition communication to drive category leadership by leveraging on our Eat Well Live Well labelling, and we are making healthier products more accessible through increased availability in general trade. To close nutrient gaps, we enrich many of our affordable nutrition food offerings with nutrients that are often lacking in the South African diet – such as Vitamin A, iron, zinc and protein – ensuring that we strike the right balance between taste and enhanced nutritional value. In the higher-income market, we are innovating across categories to unlock "superfoods" as a snacking option.
This year, we launched new healthy product lines in the Oat-based breakfast offerings (Jungle), Pulses and Beverages categories, including Jungle Oats functional beverages, a lower-calorie Energade drink, and new breakfast offerings. We have also continued the roll-out of clear and simple consumer-relevant health claims on various brands. Through our renovation and innovation efforts, we have targeted that by 2030, 75% of our food basket will meet our EWLW nutritional standards for healthier product categories "improved for you" and "good for you".
Recent research confirms that snacking is continuing to gain momentum in South Africa, with more than 70% of South Africans estimated to be snacking on a daily basis across all consumer age groups. We aim to capitalise on this growing trend by owning relevant demand spaces for consumers in all key snacking categories, including liquification, nano-meals, "crunch time" and "sweet pleasures".
We are continuing to drive innovation to capitalise on this trend, with recent product innovations including ready-to-eat cereal snacks, KOO fruit squeezes and new offerings in confectionery. In launching new products, we are spending equal effort to develop robust pipelines to enter adjacent categories aligned with our core and emerging capabilities.
Recognising that an effective consumer care and after-sales service provides a pivotal source of competitive differentiation and consumer retention, we pride ourselves in ensuring that consumer complaints are addressed in a timely and efficient manner. Over the years, the nature of consumer complaints has become more complex, and consumer needs and expectations have changed. In response to these changes and a recent review of our consumer contact centre, we have introduced various changes, including increasing the contact centre's operating hours from 08:00 to 22:00 Monday to Sunday, resulting in a marked reduction in consumer waiting time, especially over weekends. As a result of enhanced inter-departmental collaboration between the consumer contact centre and Tiger Brands quality teams, product complaints have decreased by 7% year-on-year.
The Jungle Oats RTD range also meets the growing need among consumers for foods that are convenient and offer functional benefits such as heart and digestive wellness. A recent study by consumer research organisations, Kantar and Mintel, indicates that more than half of consumers would like their diet to help maintain health and wellbeing including brain function and maintain immunity.