Strategy

As one of the largest FMCG companies in South Africa, we have a substantial role in shaping employment, enterprise development, and skills development opportunities, as well as upholding ethical governance, promoting human rights, entrenching fair labour and remuneration practices, balancing income distribution, and providing access to affordable quality food products.

We manufacture and market processed food products that have direct implications for public health, including food staples and fortified foods that provide the backbone of household nutrition, and snacks and treats with nutrition profiles directly correlated to high levels of obesity, NCDs, and malnutrition in South Africa. The availability and messaging of our popular brands strongly influence the perceptions of adults and children on food choices and family health and nutrition. Additionally, proper adherence to food safety and quality standards is crucial at various stages of our value chain, including sourcing, manufacturing, and distribution. Lapses in safety and quality at any of these points can lead to contamination or spoilage, posing potential health risks to consumers. Conversely, strict compliance ensures the provision of nutritious and uncontaminated products, promoting overall health and nutrition.

People working in our manufacturing plants and warehouses, and drivers of our delivery trucks, are exposed to various occupational health and safety risks. We have a direct responsibility to protect employees and contractors from these risks, and keep them healthy and safe. Our key safety risks include working at heights, dangerous machinery, moving vehicles, and unsafe conditions from heavy loads or objects. Our key occupational health concerns include exposure to dust and heat, lifting heavy loads, and ergonomic impacts of computer use.

Water scarcity and energy security are acute issues in South Africa. We use energy and water in our operations, and the efficiency and circularity of our use of these resources in our operations directly impact the general availability of these resources for communities and ecosystems (water). Our use of borehole water potentially impacts groundwater quality and availability.

GHG emissions from our direct operations and manufacturing plants, purchased electricity, upstream manufacturing and agriculture (land conversion) and manufacturing, and downstream transport contribute to climate change. Organic waste that we send to landfills contributes to climate change through the release of methane.

Effluent released from our manufacturing plants alters the quality of water in downstream water ways and water bodies, and can increase the costs associated with public water treatment.

Our production, disposal and processing of solid waste and packaging contribute to GHG emissions and waste from Tiger Brands' operations contributes to climate change and local environmental pollution.

We incur food waste and loss at various stages of our supply/value chain. Inefficiencies in harvesting, manufacturing mishaps, poor storage and transportation, and issues at the retail level contribute to this waste. Our management of supplier partnerships, particularly in relation to quality standards and handling requirements, plays a critical role in either mitigating or exacerbating these losses.

Our sourcing activities and supply chain, encompassing agriculture, food processing, and manufacturing operations generate both positive and negative social impacts. These impacts relate to ethical governance, human rights, fair labour practices, social inequality, and inclusion. Particularly at the local level, we exert some influence in promoting and upholding socially ethical practices in collaboration with our suppliers.

Our sourcing and supply chain activities – particularly in terms of food processing, manufacturing, and agricultural operations – have both positive and negative environmental impacts. These effects influence water quality and availability, biodiversity and land conversion, climate change, waste production, and pollution. At the local level, we exert some influence in promoting and upholding environmentally responsible practices in collaboration with our suppliers.

High unemployment, poverty, and social unrest present risks to operations, potentially disrupting supply chains and market stability.

Extreme weather events and climate change, aggravated by local water scarcity and energy instability, could lead to significant disruptions in the supply of commodities and raw materials, and the distribution of products.

New legislative requirements, including new taxes and stricter regulation of environment and health, present legal and compliance risks.

Failure to address economic transformation, public health, food security and climate-change issues could damage Tiger Brands' reputation and market share, especially with rising social and shareholder activism.

By prioritising fair and inclusive employment practices, ensuring socially ethical sourcing, and building equitable supply chains and business models, we can build and grow a more resilient business while contributing to economic transformation and social justice ( see – Enhanced livelihoods ).

We can transition our product portfolio to healthier foods by reformulating products to be healthier, and by developing new products and service models. We can raise awareness and educate consumers about health and nutrition. We can collaborate with government and other stakeholders on public health and nutrition to address systemic challenges and grow the market for healthy foods ( see – health and nutrition).

By implementing water-efficient processes, energy-saving technologies, and renewable energy sources, we can help mitigate resource scarcity, lower costs, and reduce environmental impact ( see – energy and climate and – water and effluents).

By developing more local, diversified, sustainable, and resilient supply chains, we can support local economies, reduce vulnerability to geopolitical or climate-induced disruptions, and strengthen our ability to partner with suppliers to address social and environmental impacts and risks in the supply chain (see – preferential procurement and – ethical supply chain).

Reducing packaging waste and food waste, as well as developing innovative new packaging solutions, service models, and circular material flows offer the potential to reduce costs and to develop new income streams and business models that reduce resource consumption and environmental impact, and that support enterprise development initiatives that address social inequality and economic exclusion ( see – waste and packaging).