SUSTAINABILITY REPORT 2024

Supplement to the integrated annual report for the year ended 30 September 2024

Health and nutrition

Our goal is to enable consumers to improve their health and wellbeing by providing affordable good nutrition.

Context

Public health in South Africa is in crisis, with the 2023 National Food and Nutrition Security Survey indicating that 63,5% of South African households are food insecure. High rates of obesity and lifestyle-related non-communicable diseases (NCDs) occur alongside hunger and malnutrition, disproportionately affecting lower-income households. Although public aspirations for health and wellness are rising, economic constraints limit most people's ability to afford healthier options. Regulatory controls related to public health, such as front-of-pack food labelling, marketing to children and a sugar tax, are gaining momentum, impacting food processing and marketing companies.

Approach

As Africa's largest food company, we aim to positively influence consumer health and nutrition throughout the value chain. We focus on crafting food products with transparent nutrition messaging and strong brands that promote healthier choices and improve public health outcomes. Fortifying foods with essential vitamins and minerals help reduce nutrient deficiencies and provides broader health benefits. Simple, clear nutritional information on packaging empowers consumers, while responsible marketing practices encourage healthier choices among children and adolescents. Additionally, providing affordable, healthy foods helps address the nutritional challenges faced by economically stressed households.

We see valuable commercial opportunities in health and nutrition and our strategy positions the company for growth in this segment. It addresses South Africa's pressing health challenges, regulatory developments in labelling, marketing and nutrition, as well as the growing demand for healthier products. By building a portfolio of affordable, nutritious products that also meet consumers' convenience needs, we aim to strengthen customer relationships, support broader societal sustainability goals and enhance the resilience of our business model.

In response to South Africa's constrained economic environment and to better address nutrition inequality, we are sharpening our focus on affordability and value in the development of healthier products. From 2024 onwards, our strategy will concentrate on democratising nutrition, driving innovation and enhancing education through our core brands. Our overarching aim is to close the nutrient gap by expanding the nutritional options within our core range and offering a wide consumer base affordable solutions to meet their nutritional needs. We will prioritise consumer education on the nutritional value of our brands and products, including portion control, methods for creating nutritious meals, and the inherent benefits of our offerings.

Our 2030 targets
  • Democratise good nutrition for everyday Southern African consumers by ensuring healthier options are affordable and accessible
  • 65% of our food portfolio (excluding Home, Personal Care & Baby, and Snacks and Treats) to meet our EWLW nutritional standards for healthier product categories.
Our key initiatives
  • Develop nutritional standards for our products that meet or exceed globally recognised nutritional guidelines
  • Develop more nutritious, affordable food products, including fortification of new and existing products
  • Leverage our brand and marketing activities to promote consumer nutrition and health awareness and inspire positive behaviour change
  • Play a leading role in modern food labelling practices