SUPERIOR CHANNEL PRESENCE
We seek to drive superior channel presence and lead mutually profitable growth with our customers and route-to-market partners, through our core trade channels, exports across the African continent, and food service solutions.
CORE TRADE CHANNELS
We define our core trade channels as modern trade, e-commerce and the rapidly growing informal "general trade". Underpinning our strategies in these various channels, is our drive for precision execution – delivering agile and efficient technology-enabled operational excellence at scale, which will enable us to leverage predictive modelling to identify and act on growth opportunities, optimise our cost-toserve, and secure and maintain competitive positioning on shelf.
Volumes remain under pressure within the overall FMCG retail market, with household spending constrained and shoppers making trade-offs and continuing to seek value. In addition, shoppers are increasingly seeking a seamless, frictionless omni-channel experience with elevated services and tailored loyalty offers. These key trade dynamics are informing how we partner with our customers to deliver differentiated and tailored brand solutions, communications, as well as data-driven offers by channel and format.
Customer portfolio optimisation
We are driving purposeful development of our customer mix, optimising trade investments and delivering sustainable growth and profitability. Our revenue management is centred around value-based pricing strategies informed by research into shopper willingness to pay, employing AI in pricing decisions, as well as ensuring alignment of trading terms and category objectives. These strategies have enabled alignment of product pricing, placement, and availability to customer segments, leveraging enhanced data analytics and simulation tools to drive sustainable growth.
Proactive category development in partnership with our customers including joint category development plans has allowed us to leverage the Tiger Brands basket and drive shared value. This joint planning is aimed at enhancing our supply chain management by driving improved factory efficiencies and ensuring optimised service levels.
Accelerating general trade
Although the formal retail channel remains the largest contributor to the South African FMCG sector – at roughly 60% of the estimated R668 billion market1 – there has been strong growth in the market share of wholesalers and distributors ("general trade"), including among informal independent traders such as spaza shops and superettes. We have also seen a growing blurring across traditional channels, with wholesalers moving into the retail space, and large retailers venturing into wholesale and small, low-cost convenience stores in lower income neighbourhoods and more remote rural areas.
1 NIQ Market Pulse Report September 2025
With households in the general trade channel representing around 60% of total shoppers, and with the channel projected to grow at a compound annual growth rate (CAGR) of around 6.4% to 2027, this is a critical target market for Tiger Brands. The general trade channel is becoming increasingly modernised, organised and more convenient, aided by the acceleration of fintech solutions. South African shoppers reportedly visit spaza stores up to four times more than traditional supermarkets, providing a significant opportunity to expose shoppers to our products and brands.
We are accelerating the presence of our brands across the general trade channel through a focused recruitment drive in existing territories coupled with entry into new regions. As part of our roll-out plan, we are working to expand our direct callage and presence to 150 000 stores nationwide by FY30. This expansion is supported by a growing salesforce team that employs representatives from the local community, as well as by the roll-out of our mobile cashless payment and order platform, which facilitates stock delivery from a midi-wholesaler to a spaza store or supermarket within 48 hours and dramatically reduces the risks for customers associated with handling cash.
We continued to make good progress on our targets this year, reaching 101 980 general trade stores and employing more than 300 sales representatives from local communities. We are continuing to strengthen brand visibility through our "perfect store" and trader loyalty reward initiatives and the roll-out of our visible branding of selected general trade stores using local artists and painters.
This year, we launched 40 additional perfect stores, completed the branding of a further 132 spazas and community walls with stories on some of our most recognised heritage brands. We are also continuing to roll out our branded coolers to improve the availability of Tiger Brands' ready-to-drink beverages placing 323 additional coolers in FY25.
Lead in digital commerce
Recognising the recent significant growth in online grocery platforms and digital ordering, we are committed to expanding our digital footprint and securing competitive relationships with key digital players, with the goal of securing a leading share in our targeted digital platforms.
We have continued to make good progress this year in each of our strategic focus areas:
We have delivered exceptional performance this year in our e-commerce ambitions, delivering 41% growth in Bricks & Clicks and 10.5% growth in Pureplay.
PRECISION EXECUTION
To drive cost-efficient and effective execution across our serviced channels and to meet our "cost to serve" and execution targets, we are identifying opportunities to leverage AI and predictive modelling to efficiently act on growth opportunities and challenges, optimising resourcing to ensure that the right people are in the right store at the right time. By applying increasingly sophisticated retailer data, we are enhancing our predictive analytics to improve identification of execution opportunities. These insights are being shared more effectively through a digital dashboard, enabling improved resourcing and stronger delivery of our Perfect Outlet standards. This year, we extended the Perfect Outlet programme into wholesale, pharmacies and general trade, and continued to roll out the Perfect Outlet standards, which now cover 490 stores countrywide.
Food service solutions
The South African food service industry is projected to grow to R740 billion by 2028, consisting of Quick Service Restaurants (QSR), informal eateries and the Horeca market. Consumers are increasingly seeking local flavour profiles with trusted, branded products, which have remained important amid affordability and convenience seeking consumers. Tourism is crucial to the food service industry, providing economic benefit across the value chain – and although still lagging pre-COVID-19 levels, there was a 5.1% increase in the sector in 2024, presenting opportunities for Tiger Brands' food service offerings.
Our food service strategy is to drive growth through collaborative partnerships, investing in QSR, increasing penetration in informal eateries, and optimising offerings for both front-of-house and back-of-house operations.
Exports
Outside of South Africa, markets in neighbouring Southern Africa, as well as the rest of sub-Saharan Africa present a compelling growth opportunity for Tiger Brands, with consumer expenditure expected to grow driven by the emerging middle class.
The Tiger Brands' exports strategy is an asset light, risk-adjusted strategy focused on select category growth and integrated route-to-market networks to win in the market. In line with our vision, the strategic goal to lead with operational excellence in Southern Africa remains a focus to solidify our presence, with medium to long-term targets of building winning capabilities in East Africa and tactical trading and expansion into the rest of the continent.
Key wins this year included Benny winning Gold and Silver in Mozambique with the Live with Mo'Flava TVC, as well as the Benny Mozambique omni-channel campaign. In addition, Jolly Jus won bronze for the Mozambique social impact campaign at the same awards.
