SNACK, TREATS AND BEVERAGES

Our ambition

To become South Africas foremost snacks and beverages powerhouse, bringing moments of joy and refreshment to consumers and stakeholders by unleashing the full potential of our iconic, loved brands. We are committed to igniting our people and leveraging their passion for the best quality snacks and beverages in the Southern African market.

Financial performance

Snacks and Treats domestically achieved revenue off the back of price inflation, offset by decline in volume. The volume decrease was mainly driven by chocolate, where reduced chocolate sales were driven by soaring input costs, notably sugar and cocoa, with the latter experiencing a c.63% year-on-year increase. Stringent cost containment measures partially safeguarded profitability.

Beverages saw revenues increasing supported by volume growth and price inflation. Significant increases in the cost of key ingredients and packaging items were offset by improved factory efficiencies as well as sports drinks (Energade) performing ahead of expectations.

In response to the constrained consumer environment and changing consumer preferences, we have identified specific opportunities to drive growth through innovations in affordability, health and nutrition and snackification. These include innovations in price-pack architecture, new healthier low/free from product lines, as well as new beverages offerings in the cold, ready-to-drink category, all within our consolidated brand portfolio of four market-leading power brands: Maynards, Energade and Oros.

In delivering on our cost leadership ambitions – and to manage pricing and supply volatility in core raw material inputs such as orange concentrate – we are identifying opportunities for product reformulation and packaging innovation, rationalising our SKUs, and enhancing line optimisation including through automation. To ensure a superior channel presence and develop the candy and cold ready-to-drink categories, we are optimising our price-pack architecture and case configurations, developing and executing a fit-for-purpose cold availability plan, and driving innovation to increase our presence in general trade.