Optimising our product portfolio

To determine the categories where Tiger Brands is best positioned to compete, we have undertaken a detailed review of the South African FMCG market, assessing key consumer trends and the current macro-economic outlook (see here) and identifying those product categories that are the largest and/or fastest growing in terms of volume and/or value. For each of these categories we have considered their strategic and financial fit for Tiger Brands' portfolio, reviewing the current performance, competitive positioning and market share of our existing brands, assessing the synergies between categories and evaluating the potential for our brands to stretch to other categories.

Informed by a recent updated analysis, we have identified specific opportunities in the market in which Tiger Brand should play – where we have "the right to win" – and those categories that we should exit. We continue to see potential to further expand our current category footprint and drive penetration in groceries, baked goods beverages, wheat flour, breakfast cereals, rice and pasta, processed fruit and vegetables, and selected products in snacks and treats and in home and personal care. An important objective in shaping our revised portfolio is to "de-seasonalise" the sale of our product offerings as far as possible — for example by expanding the markets of highly seasonal products or shifting the composition of certain product offerings to provide for available seasonal raw materials.

We have also identified various opportunities for entry in adjacent categories where we see valuable synergies, a growing market and/or higher margin potential. These opportunities are aligned with our identified three key growth platforms: affordability, health and nutrition and snackification (see here). In these existing and potential prioritised categories, we are investing in game-changing product and process innovation (see here), driving further process efficiencies and/or expanding production capacity.

We continue our portfolio assessment and reviewing the strategic and financial fit of several business units over the short to medium term, including (but not limited to) maize meal, King Food and Beverages, Baby wellbeing, resulting in the disposal of certain non-core brands in Home and Personal Care, as well as Baby wellbeing being held for sale.