INTEGRATED ANNUAL
REPORT 2023
for the year ended 30 September 2023
NOURISH AND NURTURE
MORE LIVES EVERY DAY
Who we are
Tiger Brands is one of Africa’s largest listed manufacturers of fast-moving
consumer goods (FMCG). Our core business is the manufacture, marketing and
distribution of everyday branded food and beverages.
Our products are relevant across every meal occasion and are well-positioned to grow. The portfolio also includes leading
brands in the home and personal care segments, supported by a growing presence in Africa.
OUR VISION
To deliver top-tier financial results and be
recognised by all stakeholders as the pre-
eminent FMCG company in South Africa and
the most desirable growth company on the
continent.
OUR PURPOSE
We nourish and
nurture more lives
every day.
Our strategy
Our strategy for sustainable profitable growth is supported by six strategic pillars,
underpinned by our core values.
Meeting the needs
of the consumer
Being obsessed about
cost-savings and
efficiencies
Investing in a
sustainable future
Contents
OVERVIEW
About this report
Our value contribution in 2023
Our footprint
OUR BUSINESS
Group profile
Our board
Our executive committee
Chairman’s review
Chief executive officer’s statement
Our business model
How we sustain value
Our key relationships
OUR OPERATING CONTEXT
Our operating environment
Material risks and opportunities
OUR STRATEGY
Strategy overview
1. Building a growth pipeline
2. Meeting the needs of consumers
3. Optimising our supply chain
Building a
growth pipeline
Optimising our
supply chain
Igniting our people
5. Igniting our people
4. Being obsessed about cost-savings and efficiency
OUR VALUES
/
/
/
We treat each other with care and respect
We deliver with passion and excellence
Safety and quality are non-negotiable for us
/
/
We embrace diversity and inclusivity
We act with integrity and accountability
in all we do
Winning behaviours
Consumer
obsession
Empowered
accountability
Teamwork
Focused execution
6. Investing in a sustainable future
OUR PERFORMANCE
Chief financial officer’s review
Operational review
Grains
Consumer Brands
Home and Personal Care
Exports and International
GOVERNANCE
Governance
Remuneration and performance
Company information
2
4
6
10
12
15
18
20
22
24
28
32
37
43
44
48
50
53
55
58
62
65
65
66
68
69
70
75
IBC
TIGER BRANDS’ 2023 INTEGRATED
REPORTING SUITE
Our 2023 integrated reporting
process comprises the following
reports:
INTEGRATED ANNUAL REPORT 2023
Provides a succinct review of our
strategy and business model, operating
context, operational performance, and
governance. Aimed primarily at existing
and potential investors and providers
of capital, it is written for use by all
parties who have an interest in Tiger
Brand’s long-term performance.
ANNUAL FINANCIAL
STATEMENTS 2023
ANNUAL FINANCIAL STATEMENTS 2023
Comprehensive review of our financial
results, with audited financial statements,
prepared in accordance with IFRS
accounting standards.
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NOURISH AND NURTURE
MORE LIVES EVERY DAY
SUSTAINABILITY REPORT 2023
Reviews our performance in managing
our most significant impacts on people,
society and the environment (impact
materiality), and in addressing the
significant sustainability-related risks
and opportunities that could reasonably
be expected to affect cash flows,
access to finance, or cost of capital
over the short, medium or long term
(financial materiality).
These reports are all available at
www.tigerbrands.com.
HOW TO NAVIGATE
THE REPORT
Reference to further
online disclosure
Further reading in the
sustainability report
Jump to page within
document
1
Page headerTiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business
About this report
Report audience and purpose
Tiger Brands’ integrated report (IR) is our primary annual
report in our annual reporting suite. The IR is written mainly
for existing and potential investors and providers of capital
who have an interest in Tiger Brands’ capacity to create value
over the short, medium and long term, and who are
assessing whether to provide resources to the company.
Although this report will be of interest to a broad range
of interested parties – including customers, government and
regulators, current and prospective employees, civil society
organisations and the media – the primary purpose of this
report is to inform the decisions of report users relating to the
provision of resources to the company.
By providing a frank review of our business model and
strategy, the risks and opportunities in our operating
environment, and our governance activities and performance
for the financial year ending 30 September 2023, the report
is intended to help report users assess whether Tiger Brands
is a good long-term investment. The IR should be read
in conjunction with our sustainability report (SR) and our
audited annual financial statements (AFS), available on our
website:
www.tigerbrands.com.
Noting the growing call from investors and analysts for
Reporting frameworks
The reporting process across our reporting suite complies
with the following regulatory requirements:
› South African Companies Act, 71 of 2008 (as amended)
› JSE Listings Requirements
› The company’s memorandum of incorporation
› King IV™ Code on Corporate Governance™ for South Africa,
2016 (King IV™)
› The International Financial Reporting Standards (IFRS)
accounting standards, developed and maintained by the
International Accounting Standards Board (IASB)
Our reporting has also been informed by the following
disclosure standards and frameworks:
› The GRI Sustainability Reporting Standards
› The IFRS sustainability standards recently released by the
International Sustainability Standards Board (ISSB): IFRS
S1 General Requirements for Disclosure of Sustainability-
related Financial Information and IFRS S2 Climate-related
Disclosures
› The Processed Foods Sustainability Accounting Standard
issued by the Sustainability Accounting Standards Board
(SASB)
› The JSE Sustainability Disclosure Guidance and JSE Climate
Disclosure Guidance
transparent, reliable and comparable ESG data, we have also
made provision for the disclosure expectations of relevant
ESG rating agencies.
2
Our approach to materiality
In response to recent developments in global disclosure
standards and frameworks, we have adopted “double
materiality” across our reporting suite.
Financial materiality: Our IR provides information on those
matters that are likely to influence report users’ assessment
of Tiger Brands’ future cash flows over the short term (less
than 12 months), medium term (one to three years) and long
term (beyond three years). Our AFS reflect the effects
on company value and cash flow that have already taken
place at the time of the financial year end.
Impact materiality: Our SR provides disclosure on the
most significant impacts of our operations and activities
on people, society and the environment over the short,
medium or long term; this includes impacts caused by the
company in its own operations, products or services, as well
as the impacts directly linked to Tiger Brands’ upstream and
downstream value chain. We have also made provision in the
SR for financially-material ESG risks and opportunities
impacting the business, thus adopting a “double materiality”
perspective for our sustainability report.
Our materiality process
To identify the issues for inclusion in our IR and SR, we ran
an independently facilitated materiality workshop in which
management representatives from across the company
considered the following issues:
Our business model – reviewing Tiger Brands’ significant
revenue and cost streams and areas for differentiation and
identifying our most important resources and relationships
across our value chain, including specific resources and
relationships we depend on for capital value retention
and growth.
Our dependencies and impacts on the capitals –
reviewing where we have the most significant dependencies
and impacts (positive and negative, direct and indirect)
on each of the capital stocks.
Our operating environment – identifying the most
important trends in our operating environment, including
relevant sustainability-related risks and opportunities that
we anticipate will impact our performance over time, and
reflecting on the outcomes of our latest internal risk
assessment process.
Our stakeholders’ interests – reviewing the matters
of greatest interest to our stakeholders and providing for the
latest developments in global disclosure standards and for the
outcomes of recent assessments of relevant ESG rating
agencies and internal board discussions.
Our strategy – reflecting on the robustness of our strategy
to ensure Tiger Brands’ long-term resilience is informed
by the above analysis.
The outcomes of this internal materiality process informed the
content and structure of our IR and SR. We prioritised the
matters for inclusion in these reports based on their relative
importance, applying the principle of double materiality.
Our aim is that all the information in the IR is material, in that
it should be reasonably capable of influencing the decision
of any report user wishing to make an informed assessment
relating to the provision of resources to the company. Our
IR is structured in a manner to enable such an assessment,
by providing information on: our business ( pages 10 to 26),
our operating context (
(
pages 43 to 58) and our governance (
most significant risks impacting value (
with the key trends in our operating environment
(
of material issues.
page 32) are often seen as constituting a discrete set
pages 32 to 41), our strategy
pages 70 to 96). The
page 37), together
These risks and trends are not sufficient to inform report
users’ assessments of value creation; hence we have chosen
once again not to list a separate set of material issues.
Report boundary
In assessing those issues that materially impact value
creation, we have looked beyond the conventional financial
reporting boundary to provide for the relevant interests of key
stakeholders. We have considered the most significant risks,
opportunities and impacts associated with our own
operations, as well as with the activities directly linked
to Tiger Brands’ upstream and downstream value chain.
Combined assurance
Combined assurance refers to the incorporation of all
assurance services and activities to optimise our risk and
governance oversight function within our risk appetite. All
assurance providers co-ordinate efforts and reporting,
ensuring alignment of governance and risk activities with the
company strategy and improved business performance. The
audit and risk and sustainability committees of the board are
responsible for overseeing the effectiveness of combined
assurance arrangements within the organisation, directing
the effort of the three lines of assurance:
› First line of assurance: All levels of management –
covering strategy development and implementation,
performance measurement, risk management, and
company control and monitoring of assurance to laws and
regulations
› Second line of assurance: Corporate functions and
oversight forums (such as the company secretariat,
compliance function, combined assurance forums,
operational audit and risk committees) – all risk and
assurance management structures of the company such
as risk management, compliance and legal services
› Third line of assurance: Internal audit, external audit and
other assurance providers who are independent of the
operational activities of the company and provide
assurance to the board. This year, Deloitte & Touche
audited our consolidated and separate annual financial
statements, from which extracts have been included in this
report. The auditor’s report does not report on the
information included in this integrated report.
EmpowerLogic (Proprietary) Limited provided external
verification of our B-BBEE activities. Marsh South Africa
conducted risk control audits at our manufacturing sites
and warehouses1, covering health, safety, security, fire
protection and readiness
Board approval
As members of the Tiger Brands board, we acknowledge
our collective responsibility for ensuring the integrity
of this report, which was drafted with input from all
members of the executive team. The board has applied
its collective mind to the preparation and presentation
of the information in this report. We believe that the report
is presented in accordance with the Integrated Reporting
Framework, and that it presents a balanced and fair
account of Tiger Brands’ performance, governance
practices and operating context for the financial year
ended 30 September 2023, as well as an accurate
reflection of our strategic commitments. On the
recommendation of the audit committee, the board
approved the integrated report and the consolidated
annual financial statements on 30 November 2023.
We invite our stakeholders to review this report and
to provide feedback on the company’s performance,
strategy and disclosure.
Geraldine Fraser-Moleketi
Chairman
Tjaart Kruger
Chief executive officer
Donald Wilson
Chairman of audit committee
1 Does not include audit disciplines at third-party owned or managed
manufacturing and warehousing facilities, with some of these third-party
facilities excluded from the programme
3
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Our value contribution in 2023
The value created, preserved, or eroded for our stakeholders in 2023.
FINANCIAL PERFORMANCE
DELIVERY OF VALUE BY STAKEHOLDER GROUP
Providers of financial capital
R1,6 billion paid
in dividends (2022: R1,4 billion)
Return on equity
15,7% (2022: 18,4%)
Return on net assets
21,7% (2022: 27,5%)
Return on invested capital
14,7% (2022: 16,4%)
Cash generated from operations
R2,7 billion (2022: R2,7 billion)
Employees
R4,5 billion paid
in salaries and benefits to 9 296 permanent employees
(2022: R4,3 billion to 9 670 employees)
R93 million
invested in employee training and development
(2022: R97 million)
One fatality
(2022: three)
Suppliers
R18 billion spend with B-BBEE-verified suppliers
(2022: R14 billion)
R7 billion spend with black-owned enterprises
(2022: R7 billion)
R6 billion spend with black women-owned
enterprises
(2022: R5 billion)
What is in it for
the consumer?
Morvite, the brand that is known of giving
South Africans strength is now entering
the market with Corn Flakes with added
nutrients and the same convenience at
an affordable price.
Customers
(retailers, wholesalers, and general trade)
98%
on-shelf availability (2022: 97%)
91% order-fill
(2022: 88%)
Consumers
31 innovation projects launched this year
(2022: 21)
28,4% value share
(2022: 28,2%)
Expanded our reach in the booming
South African informal sector, securing 50 000
general trade stores since inception
Four awards in the
MMASmarties Award*
Fatti’s & Moni’s “Always Eat’alian”
TV commercial won a
Silver Loerie Award
Communities
R70 million total socio-economic development spend
(2022: R26 million)
14 million breakfasts served by The Tiger Brands
Foundation, reaching 74 109 learners
(2022: 10 million breakfasts to 74 177 learners)
Revenue
R37,4 billion
2022: R34,0 billion
10%
Group operating
income*
R3,1 billion
2022: R3,4 billion
9%
EPS
1 725cps**
2022: 1 762cps
-2%
HEPS
1 735cps**
2022: 1 702cps
2%
Final dividend
671cps**
2022: 653cps
Total dividend
991cps**
2022: 973cps
3%
2%
*
Before impairments, fair value losses
and operational items
** Cents per share
Ingram’s Moisture Plus Body Cream on the packaging line
at the Tiger Brands Home and Personal Care manufacturing
plant in Isando.
4
* Honours for effective modern marketing in South Africa
5
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business
Our footprint
WE CURRENTLY EXPORT OUR PRODUCTS TO
29 MARKETS IN AFRICA
SOUTH AFRICA
Senegal
Côte
d'Ivoire
Ghana
Nigeria
Cameroon
Ethiopia
South Sudan
Manufacture
Current exports
Out of scope*
* Botswana, Namibia, Lesotho and
Eswatini are serviced by the
domestic business
Uganda
Kenya
Democratic
Republic of the
Congo
Tanzania
Angola
Malawi
Zambia
Mozambique
Zimbabwe
Madagascar
Namibia
Botswana
Eswatini
Lesotho
South Africa
Plant
Location Randfontein
Mill
Plant
Peanut butter
Location Randfontein
Plant
Davita (Exports – powdered
soft drinks (Jolly Jus) and
seasoning (Benny))
Location Crown Mines
Plant
Location Randfontein
Bakery
Plant
Location
HPC
Isando
Plant
Location
Pasta
Isando
NC
Plant
Location
Tomato paste
Lutzville
Bakery
Plant
Location Pretoria
NW
L
GP
Plant
Location Potchefstroom
Sorghum
FS
KZN
Plant
Location
Bakery
Virginia
Bakery and mill
Plant
Location Pietermaritzburg
Plant
Location Hennenman
Mill
Plant
Location Ndabeni
Pulses
Plant
Location Ndabeni
Jungle
Plant
Baby unit
– jars,
pouches,
cereals
Location Ndabeni
Bakery
Plant
Location Bellville
Plant
Location
Jam
Paarl
Plant
Location
Mill
Bellville
Plant
Location Maitland
Bakery
EC
WC
Plant
Location
Deciduous
Fruit (LAF)
East and West
Ashton
Plant
Location Umzinto
Bakery
Plant
Location Margate
Bakery
Unit
Bakeries
Grains
Unit
Groceries
Home and Personal Care
Mills
Snacks and Treats
Beverages
Plant
Location Musina
Tomato paste
Plant
Vegetable
agriculture
Location Marble Hall
Plant
Bakery
Location Secunda
Plant
Consumer unit
includes salad,
mayonnaise,
vegetables and
tomato sauce
Location Boksburg
Plant
Location Germiston
Bakery
Plant
Location Sasolburg
Bakery
Beverages
Plant
Location Roodekop
Plant
Bakery
Location Durban
Snacks and
Treats
(Mallows
and Jellies)
Jacobs
Plant
Location
Plant
Location Mobeni
Tastic Rice
Plant
Snacks and
Treats
(Candy and
Chocolate)
Location Mobeni
Own and operate
and export to
41
manufacturing units in
South Africa and 1 in
Cameroon
with almost
72%
of total export sales from
29
markets in Africa
5 priority markets:
Mozambique, Zimbabwe,
Zambia, Nigeria and
Cameroon
6
7
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Our investment case
Strong brands
› With almost 30%* of the grocery basket and 10 Billion Rand Brands, Tiger Brands has leading positions in most categories,
and its iconic brands are well-entrenched with consumers in South Africa
› Our products provide a solution for every meal occasion and meet consumer needs through a range of daily touchpoints
*
Source: Circana 12-month moving data to September 2023
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
#1
#1
#1
#2
#1
#1
#2
#2
#2
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
#3
#2
#2
#1
#1
#1
#1
#1
#1
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
Equity rank
Volume rank
Value rank
#1
#1
#1
#3
#4
#3
#1
#1
#1
#1
#1
#1
Refreshed leadership
› New CEO with strong FMCG
experience, especially in Milling and
Baking
› Focus on improving organisational
effectiveness and delivering improved
returns
Supportive financial position
› Cash-generative operations
› Balance sheet flexibility
› Ability to invest in capex
› Attractive dividend yield at 5,64%
Dividend yield (%)
30,88
17,80
5,64
12-month
yield
One-year
dividend growth
Three-year
dividend growth
Source: Bloomberg
Positive environmental, social and governance
performance
› We have made significant progress in delivering on our
sustainable future strategy and on our commitments
in each of our three strategic focus areas: health and
nutrition, enhanced livelihoods, and environmental
stewardship
› Our key initiatives focus on reducing waste to landfill,
recycling packaging material, reducing food waste and
loss, and diverting food waste and loss towards new
value-creation opportunities
› We recognise that we have a significant responsibility
to continue addressing our material ESG impacts and
continue to fully integrate this responsibility across the
business
Through our sustainable future strategy, Tiger
Brands is committed to creating opportunities for
inclusive economic participation in our value chain.
Growth areas
Informal market
The informal market in South Africa is valued at approximately R150 billion a year. We are pursuing various
initiatives to expand our reach in this market and have reached 50 000 stores with the aim to expand our presence
to 130 000 stores over the next five years.
Stores in South Africa’s informal market are supported by a dedicated team of sales representatives, relevant
ranging as well as visible storefront branding.
Innovation
Innovation should be viewed through the dual lens of both continuous improvement and product innovation. We need
to ensure the continuing relevance of our products – informed by an assessment of their cost, taste and overall value
proposition. Once we have ensured that the core business remains relevant, we will explore opportunities to introduce
new products in our three prioritised growth platforms: driving affordability, democratising health and nutrition, and
snackification.
Africa
We aspire to be a pan-African business with a South African head office. The past year has seen a step change
in trajectory for the Rest of Africa business, with Exports reporting a marked improvement across all key metrics, namely
volumes, revenue and profitability. This has been driven by the rejuvenation and remodelling of our key distributor model,
allowing for improved visibility and availability of our brands. With the foundation stabilised, the business is well-positioned
for growth.
8
9
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Group profile
Our core business is providing everyday branded food to large and growing
markets, primarily in South Africa and neighbouring countries. We target best-in-
class profitability, underpinned by a cost-conscious culture and a strong
commitment to ESG performance.
We have leading positions in most categories and our iconic brands are well-entrenched with consumers in South Africa,
as illustrated by the percentage share of market.
GRAINS
CONSUMER BRANDS
HOME AND PERSONAL CARE
EXPORTS AND
INTERNATIONAL
ulti
Reg. No. L 7317
Act No. 36 of 1947
'Ns�crs
C'
Revenue
R17,0bn
2022: R15,5 billion
Operating income
R838m
2022: R1,3 billion
Revenue
R13,3bn
2022: R12,4 billion
Operating income
R1,2bn
2022: R1,4 billion
Revenue
R2,2bn
2022: R1,9 billion
Operating income
R461m
2022: R308 million
Milling and baking
› Bakeries
› Wheat milling
› Maize milling
› Sorghum-based
breakfast and
beverages
Other grains
› Pasta
› Oat-based breakfast
› Rice
(Jungle)
Groceries
› Condiments and
ingredients
› Spreads
› Canned fruit and
vegetables
Snacks and treats
› Sugar
› Chocolate
Personal care
› Body care (includes
Camphor cream)
› Depilatories
› Hair care
› Deodorant
› Hair styling
Tiger Brands Food
Service Solution
(previously Out of Home)
› Services professional
Home care
› Sanitary cleaners
› Pesticides
kitchens and
quick-service
restaurants
Beverages
› Concentrates
› Sports drinks
› Ready-to-drink
Baby
› Nutrition and
wellbeing
S
D
N
A
R
B
P
O
T
10
Revenue
R4,9bn
2022: R4,3 billion
Operating income
R601m
2022: R350 million
International
operations
› Central Africa
(Chococam)
Deciduous fruit
› Langeberg &
Ashton Food
(LAF)
Exports
Revenue
Revenue
Revenue
46%
36%
6%
12%
MARKET SHARE (%)
Grains
Grains
Maize
Flour
Cereals
Rice
Dry pasta
Bread
9
27
26
20
49
40
30
Consumer Brands
Groceries
Spreads
Condiments
Canned fruit and
vegetables
Snacks and treats
Chocolate
Candy
Health bars
Beverages
Dilutables
Sports drinks
Ready-to-drink
Baby nutrition
23
14
8
39
33
42
56
57
58
44
43
50
30
Home and Personal Care
Home care
(Pesticides)
Personal care
9
62
Source: Circana 12-month moving to end-September 2023
Operating income
Operating income
Operating income
Grains
Consumer Brands
Home and
Personal Care
Exports and
International
27%
38%
15%
20%
11
CamphorTiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context
Our board
Our governance framework is designed to support our core purpose in line with
the Companies Act, JSE Listings Requirements, King IV™ and other relevant laws
and regulations and ensures that Tiger Brands remains a good corporate citizen.
The Tiger Brands board comprises a range of corporate and strategic business
leadership skills, diversity and independence to appropriately exercise sound
judgement and leadership in fulfilling its oversight functions.
EXECUTIVE DIRECTORS
INDEPENDENT NON-EXECUTIVE DIRECTORS
INDEPENDENT NON-EXECUTIVE DIRECTORS
EMMA MASHILWANE 48
Lead independent director
Appointed December 2016
Emma is co-founder and CEO of MASA
Group of Companies, which includes MASA
Risk Advisory Services (Proprietary) Limited
and MASA Chartered Accountants
Incorporated. A seasoned chartered
accountant, she has more than 15 years’
experience leading internal audit, external
audit and advisory teams at various
multi-national companies in the public and
private sectors, including logistics, mining,
financial services, retail, FMCG, real estate
management, healthcare and non-profit
organisations. Until 30 September 2023,
Emma served as a non-executive director
on the boards of Capitec Bank Holdings
Limited and Capitec Bank, and as
chairman of Capitec Bank’s social and
ethics committee. She holds an MBA from
Wits Business School, BCom Honours
(University of KwaZulu-Natal) and BCompt
(UNISA).
Area of expertise and contribution
› Extensive auditing and finance
› Governance and leadership
› Corporate finance and banking
› FMCG
› Risk management
Board meeting attendance
› 8/9
TJAART KRUGER 63
Chief executive officer
DEEPA SITA 46
Chief financial officer
Appointed 1 November 2023
Appointed October 2020
Area of expertise and contribution
› Strategy execution
› Extensive FMCG experience
› Culture alignment
Board meeting attendance
› N/A
Area of expertise and contribution
› Leadership and strategy
› Extensive finance and governance
› Risk management
› Innovation and IT
› Procurement practices
› FMCG
Board meeting attendance
› 9/9
GERALDINE FRASER-
MOLEKETI 63
Chairman
Appointed September 2020 and as
chairman on January 2021
Geraldine serves as chancellor of the
Nelson Mandela University, a non-executive
director on the board of the Standard Bank
Group and Standard Bank South Africa and
lead independent director of Exxaro
Resources Limited. She is also chairman of
the Thabo Mbeki Foundation. She is a
fellow of the Institute of Politics at the
Harvard Kennedy School and has
completed a leadership course at Wharton
Business School, University of
Pennsylvania. She has been recognised
with several awards, including the OP
Dwivedi Public Service Award from the
International Association of Schools and
Institutes of Public Administration, and a
special award for outstanding achievement
from the University of Pretoria’s School of
Public Management and Administration.
Area of expertise and contribution
› Leadership and strategy
› Extensive governance and public
› Stakeholder relations and sustainability/
administration
ESG leadership
Board meeting attendance
› 9/9
KEY
Nomination and governance committee
Social, ethics and transformation committee
Risk and sustainability committee
Audit committee
Remuneration committee
C
Chairman
Investment committee
GAIL KLINTWORTH 60
DONALD WILSON 66
LUCIA SWARTZ 65
MAHLAPE SELLO 61
Appointed August 2018
Appointed June 2019
Appointed June 2022
Appointed October 2019
Gail is the co-founder and chair of Savo
Project Developers, an advisory and
investment facilitation business focused
on building a portfolio of sustainable
businesses across the African continent.
She additionally holds a portfolio of
strategic and governance roles with
various industries to help drive systemic
change to a more sustainable economy.
Her formal roles include board advisor to
MAS Holdings, member of the supervisory
board of Rabobank and chair of the Shell
Foundation. Previously, Gail served as the
business and transformation director for
the global Business and Sustainable
Development Commission, as customer
and responsible business director for Old
Mutual Plc and global chief sustainability
director for Unilever (Proprietary) Limited.
Earlier, Gail led several Unilever
businesses, including as EVP for Unilever’s
global savoury category and as CEO of the
group’s South African business. She has a
master’s degree in Sustainability
Leadership from Cambridge University.
Donald is an experienced finance executive
whose career spans over 20 years working
for listed entities with global operations. He
retired in 2020 as group finance director of
Barloworld Limited, a global industrial
company. At Barloworld, he played a
strategic role during the unbundling of PPC
Limited and the listing of Freeworld Limited.
He is a non-executive director of Mpact
Limited and Zeda Limited and director of
BHBW Holdings (Proprietary) Limited.
Donald is a CA(SA).
management
Area of expertise and contribution
› Mergers and acquisitions and
stakeholder engagement
› Extensive finance and general
› Governance and remuneration
› Leadership and strategy
Board meeting attendance
› 9/9
governance
Area of expertise and contribution
› FMCG – General management and
› Stakeholder relations
› Brand and reputational management
› Innovation and marketing
› Extensive sustainability/ESG leadership
and strategy
Board meeting attendance
› 9/9
As an executive and strategic business
partner within international corporate and
startup operations, Lucia has wide-ranging
experience in human resources leadership.
She started her career with Reckitt &
Colman before joining BP Southern Africa
as human resources officer. Following this,
she spent eight years at the Seagram
Group of Companies as human resources
director and later joined Sappi Limited as
group head of HR. She also served as the
vice president, people at AB InBev Africa
Zone. Previously Lucia served as a
non-executive director of Clicks Holdings
Limited, Zambian Breweries Plc and
SABMiller Namibia (Proprietary) Limited.
She is currently a non-executive director of
Mr Price Group, Santam, Isizwe Advisory
Services (Proprietary) Limited and Delta
Corporation Limited (Zimbabwe).
Area of expertise and contribution
› General management and strategy
› Extensive human resources
› Remuneration policies
› Governance and FMCG
Board meeting attendance
› 9/9
Mahlape is a practising advocate and a
member of the Johannesburg Society of
Advocates and of the International Court of
Arbitration of the International Chamber of
Commerce Council. She has been in
practice since 2003. She is a panellist with
the Arbitration Foundation of Southern
Africa and China-Africa Joint Arbitration
Centre. She is currently non-executive
director of Life Healthcare Group Holdings
Limited. Mahlape was appointed a member
of the South African Law Reform
Commission in 2007, on which she served
until December 2011, before being
re-appointed in August 2013. She was
previously chairman of Murray & Roberts
Limited, having been appointed to the
board in 2009 and as chairman in 2013.
She was chairman of the Advertising
Industry Tribunal Appeal Committee of the
Advertising Standards Authority of South
Africa (appointed in 2013).
expertise
Area of expertise and contribution
› Extensive legal and commercial
› General management and leadership
› Governance, strategy
› Stakeholder relations
Board meeting attendance
› 9/9
12
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context Our board continued
Our executive committee
INDEPENDENT NON-EXECUTIVE DIRECTORS
Our executive committee (Exco) facilitates the effective control and monitoring
of the business activities in terms of the delegation of authority framework
approved by the board.
It is responsible for implementing policies and executing strategies in line with the board’s mandate and ensuring that
appropriate internal controls are in place to maintain compliance with relevant laws and best practice.
OLIVIER WEBER 60
Appointed August 2020
Olivier is a senior executive with more than 30 years
of experience in the food and beverage industry. He is
currently director of Marilan Alimentos S.A. (Brazil),
Risamar (USA) and Resiter S.A. (Chile). He has held
various general management roles, including as
president, leading the PepsiCo Food businesses in Latin
America (except Mexico). He has specialised in
successfully turning businesses around in Latin America
and leading M&A activities.
Area of expertise and contribution
› General management and strategy
› Mergers and acquisitions
› Governance
› Business turnaround and culture transformation
› Risks management and marketing and brands
› ESG experience
Board meeting attendance
› 9/9
FRANK BRAEKEN 63
Appointed April 2022
Based in Dubai, Frank has deep FMCG and emerging
markets experience, having held various senior and
executive roles at Unilever in Eastern Europe, Latin
America, Africa and Asia. Other previous roles include
executive chairman of Feronia Inc., chief investment
officer of Amatheon Agri Holding and a short period at
Procter & Gamble. He is currently chairman of MSI
International and Baobab International, a non-executive
director of Buhler Holdings AG (Switzerland), AECF LLC
(USA) and Alliance for a Green Revolution in Africa
(Kenya).
Area of expertise and contribution
› General management and strategy
› Mergers and acquisitions
› Governance and risk management
› FMCG and emerging market
› Sustainability/ESG
Board meeting attendance
› 9/9
MICHAEL AJUKWU 67
Appointed March 2015
Michael is a seasoned business executive who has
held leadership roles across various sectors. He is
currently non-executive director of International
Breweries Plc, a subsidiary of AbInbev, MTN Limited
(Nigeria), Novotel Hotels Group, Sterling Bank Plc,
chairman of Munica Properties Investment Limited
and Mobax Nigeria Limited. Previously, Michael was
non-executive chairman of Fenikso Limited. He has an
undergraduate degree from the University of Lagos and
an MBA from The Leonard N Stern School of Business.
Area of expertise and contribution
› Stakeholder relations
› Risks and general management
› Corporate finance
› West Africa
› Banking and finance
› FMCG
Board meeting attendance
› 9/9
NON-EXECUTIVE DIRECTOR
SAM SITHOLE 50
Appointed March 2023
Sam is co-founder and CEO of Value
Capital Partners (VCP). Prior to VCP, he held
several leadership positions at Brait
including executive director: capital and
treasury. He was a partner at Deloitte,
where he was group leader for the
Financial Services Audit Practice in the
Johannesburg office. Sam is chairman of
Sun International, as well as an alternate
director of Metair Investments and Adcorp
Holdings and a former non-executive
director of Altron.
expertise
Area of expertise and contribution
› Extensive investment and finance
› General management and strategy
› Mergers and acquisitions
› Governance
› Stakeholder relations
Board meeting attendance
› 6/6
TJAART KRUGER 63
Chief executive officer
DEEPA SITA 46
Chief financial officer
ZAYD ABRAHAMS 46
Chief strategy and marketing officer
Appointed November 2023
Appointed October 2020
Appointed January 2023
Tjaart is a CA(SA) with a PMD from Harvard
Business School and has more than 30 years of
leadership experience garnered from multiple
leading South African companies including strong
fast-moving consumer goods (FMCG) know-how. He
sharpened his career through previous experience
as divisional managing director at ICS Foods Limited
(today Astral Foods), CEO of Country Bird
(Proprietary) Limited, and at Tiger Brands as the
managing executive for the Pharmaceuticals and
Grains divisions over the period 2001 to 2007. In
2007, Tjaart was appointed as CEO of Afrox Limited
where he gained experience in managing a global
company with responsibility for operations in six
countries. Prior to re-joining Tiger Brands in 2023,
Tjaart served as CEO of Premier Foods over the
period 2011 to 2021.
Deepa joined Tiger Brands from the Massmart
Group, where she held the role of vice president:
integration and strategy for Massmart Wholesale.
Earlier, she served as the interim CEO for the
Masscash division. She joined the Masswarehouse
division of Massmart as finance director in 2016. In
2018, her portfolio was expanded when she was
appointed as finance and commercial director. She
is currently a non-executive director of Datatec.
Deepa’s previous roles include finance director of
Mondelˉez International (responsible for South,
Central and East Africa, Israel and Mauritius),
finance and procurement director at Entyce
Beverages, a division of National Brands (AVI), and
senior finance manager at Samsung Electronics.
Deepa is a chartered accountant, with an MBA
(cum laude) from GIBS.
Zayd re-joined Tiger Brands, from FNB, a division
within The First Rand Group, where he led the
marketing team. He brings broad commercial,
marketing, strategy and business leadership
experience amassed through leadership roles in
companies including Unilever, L’Oréal, Coca-Cola
and MTN Group, in global, local, and regional roles
across sub-Saharan Africa, Europe, the Middle East
and Turkey. He also spent several years running his
own business. He has a track record in driving
business, brand and category growth, and
developing strategy from insights to execution.
He holds a BCom degree from the University of
KwaZulu-Natal and an MBA from Wits University.
14
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context Our executive committee continued
Our executive committee represents diversity of knowledge, skills, backgrounds
and new perspective, which foster better debate and decision-making underpinned
by our values.
LUIGI FERRINI 56
Chief customer officer
Re-joined the group in October 2009
Exco member since May 2019
Luigi has more than 14 years with Tiger Brands,
after re-joining the group in 2009 as customer
executive: Grains. He was previously with AVI:
National Brands where he held the position of sales
director of their Snackworks business. Luigi has
more than 27 years’ experience within FMCG,
spanning both South Africa and international
markets with particular emphasis on sales strategy
and execution, customer management and customer
relations.
THUSHEN GOVENDER 47
Chief growth officer:
Consumer Brands
POLYCARP IGATHE 51
Chief growth officer:
Rest of Africa
Appointed May 2021
Appointed December 2022
Thushen re-joined Tiger Brands from Aspen Holdings
Limited, where he was group commercial officer
responsible for markets including China, Russia and
the USA. Prior to this, he played a pivotal role in
developing the international strategy of Pioneer
Foods with direct responsibility for the global exports
business as well as UK and Africa operations. During
his previous tenure at Tiger Brands, he played a
pivotal role in the execution and development of
Tiger Brands’ growth strategy at the time, having
held the executive position of group strategy,
investor relations and business development.
He is a qualified CA(SA) with an MBA from Henley
Management College.
Polycarp re-joined Tiger Brands in this position,
having previously served as managing director for
Tiger Brands East Africa business. He brings strong
commercial capability as well as marketing, sales,
strategy and business leadership experience
developed through various leadership roles in
companies such as Coca-Cola, Kenya Breweries,
Vivo Energy and Equity Bank across the continent.
He spent a brief period as the deputy governor of
Nairobi and is well-versed in engaging and
influencing diverse stakeholders towards a shared
outcome. He has a track record of leading
high-energy teams that deliver stretch targets,
business results, innovation and growth. Polycarp
holds a BA (Economics) degree from the University
of Nairobi.
S’NE MAGAGULA 50
Chief human resources officer
Appointed May 2018
S’ne is a seasoned and innovative business
leader with a passion and track record for
growing high impact teams that deliver
results and create sustainable value. Before
joining Tiger Brands, she was group senior
vice president, human capital for the Sasol
Group and has held various human
resources leadership positions within Sasol
since 2008, both locally and globally. Prior to
joining Sasol, she spent 10 years at Shell in
various roles in South Africa and the
Netherlands. She is a well-rounded and
highly experienced human resources
executive having a proven track record in
business strategy development and
execution, global human resources
leadership and organisational design. S’ne
has an undergraduate degree in social
sciences and an MBA from the University
of Cape Town.
YOKESH MAHARAJ 51
Chief growth officer: Grains
Re-joined the group November 2021
Yokesh re-joined Tiger Brands from
Mondelˉez where he was president for
sub-Saharan Africa. During his previous
tenure at Tiger Brands, he was chief growth
officer for Exports, International and
Consumer Brands. He has a long track
record in the FMCG industry and broad
experience in working across Africa. Yokesh
previously held the position of managing
director: Africa at Distell Limited and spent
17 years at South African Breweries (SAB).
During his tenure at SAB, Yokesh held the
positions of executive director: sales and
distribution, executive director: HR, and
president of SAB, following the AB InBev
acquisition.
DEREK MCKERNAN 56
Chief manufacturing officer
Appointed July 2020
Exco member since January 2022
Derek is an internationally experienced technical and
operations leader with over 30 years of experience
in supply chain and manufacturing leadership roles.
Prior to joining Tiger Brands as operations support
director in July 2020, Derek held senior roles at
SABMiller and AB InBev in South Africa and in
Asia Pacific.
MARY-JANE MORIFI 61
Chief corporate affairs and
sustainability officer
JOE RALEBEPA 52
Chief legal officer
Appointed December 2016
Appointed January 2020
Joe joined Tiger Brands from the Massmart Group
where he served as group legal executive, general
counsel and company secretary until December
2019. Prior to Massmart, Joe held various senior
corporate legal roles at British American Tobacco
Southern Africa Region and The Coca-Cola Company
in South Africa and the UK. He is an admitted
attorney and an accomplished legal and corporate
executive with extensive corporate legal skills and
multi-national FMCG experience as well as retail
knowledge.
Mary-Jane joined Tiger Brands in 2016 as the chief
corporate affairs and sustainability officer. Prior
to this, she was the head of corporate affairs
at Anglo-American Platinum from 2007 to 2013.
Her passion for sustainability and women’s
development has led to the establishment of many
projects to address food security. Her desire
to contribute positively to society has led
to numerous recognitions. With a career spanning
more than 30 years, she has tackled some of the
toughest socio-economic challenges. Among her
significant academic achievements was her visiting
fellowship at Harvard University. She is a senior
associate of the Cambridge Institute of Sustainability
Leadership, a trustee of The Tiger Brands
Foundation, Leratong Hospice and the
Nelson Mandela Children’s Fund. She holds
an undergraduate degree in Social Science and
post-graduate degree in Sociology from the
University of Cape Town. She is a fellow of Harvard
University and has completed a number of executive
education programmes at Stanford University,
Harvard Business School and Cambridge University.
Executive gender
Executive age
Executive tenure
Women 27%
Men 73%
40 to 49 years 3
50 to 59 years 6
60 to 69 years 2
0 to 3 years 4
3 to 6 years 5
6 to 8 years 2
16
17
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context Chairman’s review
GERALDINE FRASER-MOLEKETI: Chairman
While not always immediately visible in our year-on-year results, it is important to
recognise that, in the past three years, we have successfully delivered some important
corrective measures and continued to make valuable progress in the foundational areas
of our business.
it needed to build on the recent foundational work and instil a high-performance
culture, supported by best-in-class capabilities. With regard to growth, I had
indicated at the time that the management team was fully aware of the tough
decisions required, and of the work to be done in driving a more aggressive
approach to both organic and inorganic growth. The board therefore took decisive
steps this year towards concretely building a high-performance culture that would
achieve these outcomes.
This year, group operating income was down 9%, while headline earnings per share
(HEPS) was up 2%, year-on-year. These results were ahead of market expectations,
reflecting both the subdued nature of these expectations as well as Tiger Brands’
underlying resilience in the face of a particularly challenging operating environment.
We saw good performance from Beverages, Tiger Brands Food Services Solutions,
the Home and Personal Care divisions, and Deciduous Fruit, while our strategies
in the Rest of Africa have gained traction, with Exports outperforming on every key
metric. The strong performances were offset by the one-off impact of poor price/
volume management in Rice in the first half, reduced demand within Groceries, and
poor performance in the Bakeries and Snacks and Treats divisions.
Group earnings were bolstered by higher income from associates primarily due
to earnings from National Foods being favourably impacted by a change
in functional currency from Zimbabwean dollars to United States dollars. Earnings
per share (EPS) decreased by 2% to 1 725 cents, while HEPS increased marginally
to 1 735 cents. In addition, the company declared a final dividend of 671 cents per
share, bringing the total dividend for the year to 991 cents per share.
Addressing underperformance
While not always immediately visible in our year-on-year results, it is important
to recognise that, in the past three years, we have successfully delivered some
important corrective measures and continued to make valuable progress in the
foundational areas of our business. We have achieved valuable improvements
in manufacturing, digitalisation, procurement, and food safety and quality, launched
new products in the value segment, expanded our reach in general trade and
e-commerce, and exceeded our targets on cost-savings and efficiencies in each
of the past three years. Given the heightened stakeholder interest in companies’
ESG performance, it has been pleasing to see the notable progress we have made
in implementing our Sustainable Future strategy, leveraging our influence, and
increasing our investment to advance our commitments to improve consumer
health and nutrition, enhance livelihoods, and ensure responsible environmental
stewardship. The strategy is closely aligned with the company’s growth strategy
and has placed a particular focus on moving beyond simple compliance to identify
opportunities to innovate and differentiate our products and services as a solution
to societal challenges.
This year, despite high consumer inflation, our volumes were only marginally lower
year-on-year, showing stronger comparative performance than most of our
competitors. We were also able to sustain our service levels in the face of significant
disruption in local and global supply chains, and we improved our in-market
execution and pricing in our Rest of Africa markets.
It is clear that, in these three years,
we have made some valuable strides
in key areas of our strategy, laying
an important foundation for further
growth in the context of a particularly
tough operating environment.
This year’s performance suggests,
however, that we haven’t yet delivered
on our promised turnaround. The
company still lags behind its historical
earnings levels and faces sustained
pressure on margins, despite having
some of the country’s most iconic
brands. Understandably, the market
has lost patience with our various
strategy “refreshes”, and there has
been some evident frustration with the
pace of execution.
When I took on the role of chairman
of the Tiger Brands board three years
ago, I made it clear that I was
expecting the company to regain its
rightful place as the country’s leading
food company, underpinned
by consistent strong growth. More
specifically, in 2021, I stated that for
Tiger Brands to turn the corner,
18
Notwithstanding all these improvements, we recognise that
Tiger Brands has not realised its full value potential. Given
current pressure on consumer disposable income and
heightened market competition – including from private label
– we not only need to maintain a strong focus on addressing
efficiencies and cost reduction, but also need to be more
aggressive and effective in executing our innovation
in products, processes, and packaging. Effectively realising
these opportunities requires a strong performance-based
culture and appropriate levels of responsibility and delegation
in our decision-making.
These are all challenges and opportunities that have been
well recognised internally, but in which we have struggled
to execute efficiently and effectively.
A change in leadership
Given this context, the board concluded that it was
appropriate for new leadership to deliver the required
transformation, jointly agreeing with Noel that he would step
down as CEO while remaining available to the company until
end-March 2024. Recognising the specific challenges facing
the company, we were very pleased that Tjaart Kruger agreed
to join Tiger Brands as CEO on a 26-month contract effective
1 November 2023. Tjaart is a chartered accountant with
more than 30 years’ leadership experience at some of the
top South African FMCG companies, the most notable being
as CEO of Premier Foods, from 2011 to 2021, where
he oversaw a fivefold increase in EBITDA and significant
market share gains in the Milling and Baking category.
On the board’s behalf, I extend our appreciation to Noel for
his contribution over 20 years of service with Tiger Brands.
During his three-year tenure as CEO, Noel has navigated
some particularly tough challenges, including managing the
aftermath of the listeriosis crisis and dealing with COVID-19,
civil unrest, supply chain disruptions, and high inflation. In this
period, the company’s underlying operating profit trajectory
was stabilised and there have been many improvements
in internal operating metrics. We thank Noel for his
unwavering commitment through these challenges,
and we wish him the best in his future activities.
Board changes
In addition to Noel’s departure, there have been several
other changes to the board this year. In February 2023,
Ms Emma Mashilwane was appointed as lead independent
director with effect from the close of the AGM, having served
on the board since 2016. Mr Sam Sithole joined the board
as a non-executive director of the company with effect from
1 April 2023, bringing extensive experience in finance,
general management and strategy, mergers and acquisitions,
governance, and stakeholder relations. Ms Cora Fernandez
stepped down as independent non-executive director with
effect from 10 October 2023. At an executive level,
Ms Deepa Sita resigned as chief financial officer and
executive director with effect from 31 December 2023. The
board extends its gratitude to Ms Sita and Ms Fernandez for
their service and commitment, and we wish them well in their
future endeavours.
Outlook
To deliver the transformation we have committed to will
require hard work in what promises to be a particularly
challenging global and local macro-economic environment.
Globally, the economic outlook remains uncertain, with
a relatively flat Chinese economy, potential further tightening
in monetary policy, worrying conflicts in Eastern Europe and
the Middle East, and possible further disruptions in global
supply chains from extreme weather events. In South Africa
– our primary market – we continue to face increasing levels
of poverty, inequality and unemployment, profound
infrastructure challenges, persistent crime and corruption,
and poor levels of service delivery.
Our incoming CEO faces a daunting in-tray. As part of the
selection process, Tjaart outlined his vision for Tiger Brands,
in which he prioritised operational excellence, margin
management, and realignment of the organisational structure.
His key performance indicators for the next two years will
be linked to addressing priority areas of concern, including
addressing gross and operating margin declines, stabilising
the millbake operations, and delivering a recovery
in shareholder returns, underpinned by strengthened strategy
execution and a healthy company culture.
Acknowledgements
As chairman, I am fortunate to have an engaged board with
significant FMCG skills and a strong global presence,
well-suited to ensuring robust accountability of the executive
team. I wish to thank my colleagues on the board for their
continued support and advice during this challenging year.
On behalf of the board, I would also like to thank the Tiger
Brands management team and all employees for their effort
in responding to some of the significant challenges, and for
striving to move the company on a path to outperformance.
Geraldine Fraser-Moleketi
Chairman
30 November 2023
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context Chief executive officer’s statement
TJAART KRUGER: Chief executive officer
I am honoured and excited to be taking on the challenge of chief executive
of Tiger Brands, returning to a company where I spent some important formative
years of my career. Although it is fair to say that Tiger Brands has faced some
challenges recently and not delivered on its full potential, I strongly believe that the
company has what is needed to restore the business to its rightful position.
Financial performance
Despite strong revenue growth, Tiger Brands’ gross margins this year were down
on the prior year, while group earnings were boosted by improved income from
associates. Total revenue increased this year by 10% to R37,4 billion off the back
of price inflation of 11%, favourable foreign exchange gains of 1%, and overall
volume declines of 2%. Group operating income ended lower than FY22. The
ongoing challenges of fully recovering higher input costs persisted in the second
half, resulting in marginally lower volumes. Together with the year-on-year impact
of incremental retrenchment costs of approximately R100 million, this proved too
significant to be offset by the group’s cost reduction initiatives, which ended ahead
of the R460 million target previously guided.
Good performances from Beverages, Home and Personal Care, Tiger Brands Food
Services Solutions, Exports and Deciduous Fruit were more than offset by poor
performances in Rice, Bakeries, Groceries, and Snacks and Treats, with the last
two of these businesses operating in categories marked by absolute volume
declines.
Despite making good progress with cost-saving initiatives and supply chain
efficiencies, this was not enough to counter high input cost inflation and the
substantial costs of loadshedding, which amounted to R126 million for the year.
As a result, gross margins declined to 27,7% from 30,3% last year. Group operating
income (before impairments and non-operational items) decreased by 9% to
R3,1 billion. Earnings per share were down 2% to 1 725 cents per share, while
headline earnings per share increased marginally to 1 735 cents per share.
A particularly tough operating environment
This year’s results reflect the impacts both of a very challenging trading environment
and some internal goals. Globally, the green shoots of a post-COVID-19 economic
recovery have been undermined by high inflation, tighter monetary and fiscal
policies, and increasing geopolitical instability, further exacerbated by extreme
weather events. The outlook for the global economy remains subdued amid
growing concerns around the fragility of the Chinese economy. Closer to home, our
markets across Africa face their own macro-economic challenges, with increasing
youth unemployment, glaring income disparity, and continuing political and
regulatory instability.
In South Africa, the company has faced strong headwinds associated with record
levels of unemployment, significant infrastructure bottlenecks, and increasing
frustration with service delivery. On the political and regulatory front, businesses have
been working in what can best be described as a “holding pattern” in the run-up
to next year’s national election that could result in an untested coalition government.
With consumer confidence dropping to its second-lowest level since 1994, the
anticipated growth of the emerging middle class is stalling as it submerges under
Its brands are strong, the product
offerings are comprehensive and
well-represented, and many of the
recent challenges it has faced have
been internal, signifying that solutions
are within our reach. As is evident over
the last few years, the company has
the financial strength to withstand
some significant headwinds, and that
places it in a good position for
further growth.
In taking on this role for the next
26 months, my primary objective
is clear: to increase sales, optimise
pricing, and establish a cost structure
and operating model that will enable
sustainable growth. To achieve this,
I will be working to foster a focused
and entrepreneurial spirit throughout
the organisation that will ensure
a responsive and nimble organisation.
20
sustained waves of economic challenges, such as high interest
rates and debt levels, and soaring fuel and food prices.
As disposable income comes under increased pressure,
consumers have responded by trading down, reducing
demand for discretionary and premium products, and
increasingly relying on promotional pricing and private-label
products, with brand-loyal customers reverting to smaller pack
sizes. In the context of heightened price competition, volumes
and margins are threatened, and cost recovery ahead
of inflation remains a challenge.
Back to basics
To deliver on Tiger Brands’ full potential in this very
challenging context, there are certain aspects that I wish
to highlight:
› Fostering the right culture: In any company, culture
is the cornerstone of success. It shapes the way
we interact with one another, ideally underpinned
by strongly shared values such as mutual respect, hard
work, and unwavering commitment. As an organisation,
we should be clear on working together as a cohesive
team, setting high standards for ourselves, informed
by a spirit of collaboration, while being at ease within our
working environment
› Operating model: While there is certainly value
in achieving operational efficiencies through centralised
synergies, it is equally important that critical decision-
making should be as close to the operations as possible.
I believe that there are opportunities for Tiger Brands
to strengthen its decentralised decision-making. We will
also be realising some specific cost-saving opportunities
that have been identified, and we will seek to deliver
on specific targets by expense type and category. To this
end, the most appropriate organisational design will
be implemented with renewed intensity and urgency
› Managing complexity: Tiger Brands’ business and product
portfolios are still unnecessarily complex. I believe that there
remains valuable opportunity to optimise the product mix and
further streamline the business by eliminating non-performing
products. We will be looking to deliver changes in our current
portfolio, exiting certain categories that are no longer deemed
future-fit, and seizing identified opportunities for entry
in adjacent categories where we see valuable synergies,
a growing market, and/or higher margin potential. We will
be further simplifying, rationalising and stretching our brands
through rigorous investment to ensure that our brands talk
to the relevant consumer and demand spaces, with progress
measured both in terms of brand profitability and brand
equity indicators
› Innovation: While innovation should be a key element of the
company’s growth strategy, this must be viewed through
the dual lens of both continuous improvement and product
innovation. We need to ensure the continuing relevance
of our products – informed by an assessment of their cost,
taste, and overall value proposition – striving constantly
to update our recipes to remain relevant while driving
cost-savings. Our initial focus should be on ensuring that
the core business remains relevant before we explore
opportunities to innovate and introduce new products
Outlook
The immediate market outlook remains challenging.
Consumer confidence is likely to remain under pressure given
current high interest rates and food inflation, which have
continued to accelerate this year. While there has been
a recent softening in global food prices, this has been offset
in South Africa by a weakening rand as well as loadshedding,
which has disrupted food production and distribution, and
significantly increased costs for manufacturers and food
retailers. Although some projections suggest food inflation
in the country will abate in 2024, this assumes a further
slowdown in global food inflation, an easing in electricity
outages, an improvement in our summer crop production,
and a stable rand, none of which is guaranteed.
Given the anticipated low to no growth environment, and
in response to the recent shifts in consumer and shopper
behaviour, we have prioritised the below key focus areas
in addition to the fundamentals mentioned above.
› Restoring cost leadership: We will continue our rigorous
approach to cost savings, having identified additional
opportunities informed by an extensive external and
internal benchmarking exercise, which will deliver
on specific targets by expense type and category
› Turbo-charging our growth in general trade:
To capture the growth opportunities evident in the informal
sector we are expanding our presence in this segment of the
market by implementing robust route-to-market support and
solutions for our general trade customers
› Executing our identified key growth platforms in three
priority areas: We have prioritised three growth platforms
aimed at driving broader consumer and shopper relevance
and increasing market success: driving affordability,
democratising health and nutrition, and over-indexing
on snackification
I am confident that, with motivated people who are aligned
to a clear purpose, we can deliver the necessary results. While
the full return to ultimate performance will not be achieved
in 26 months, we should certainly be on a measurable track
towards it.
I am looking forward to leading Team Tiger on this journey.
Tjaart Kruger
Chief executive officer
30 November 2023
21
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context
Our business model
KEY RESOURCES
HC
NC
MC
SRC
IC
FC
Experienced, diverse leadership team
and skilled employees, underpinned
by strong governance structures
Reliable and sustainable access to
primary agricultural products
(including wheat, rice, maize, oats,
sugar and sorghum), other
ingredients, packaging, energy,
fuel and water
Well-capitalised manufacturing
plants, supported by efficient and
effective supply chain, distribution
and logistics networks
Strong and trusted corporate brand,
positive supplier and customer
relations, and constructive
relationship with government,
regulators and host communities
Continuous investment in our brands
through research and development,
marketing investment, and innovation
informed by strong consumer
insights
Access to financial capital, through
strong cash generation and
enhanced by superior investor
returns and sustained market
confidence
Read more on pages 26.
KEY RELATIONSHIPS
› Employees and trade union partners
› Customers
› Consumers
› Government
› Investors
› Suppliers
› Communities
Read more on pages 28.
OUR OPERATING
ENVIRONMENT
Trends impacting value:
› An unsettled global and regional
macro-economic environment
› Profound socio-economic challenges
in South Africa impacting consumer
confidence
› An increasingly competitive market
responding to shifting consumer dynamics
› Digital technologies and e-commerce
› The rising impact of ESG and sustainability-
related considerations
Read more on pages 32.
22
Tiger Brands creates value and delivers on its purpose by producing, marketing,
and distributing everyday branded food, home and personal care products,
predominantly in South Africa, with a growing market presence across Africa. Our
core category is food with immediate adjacencies in beverages and snacks and
treats. Our product portfolio is well-placed to grow presence in most occasions
with further innovation or inorganic opportunities possible.
MATERIAL RISKS
1.1 Market responsiveness
1.2 Cost competitiveness
2.1 People security
2.2 People safety
2.3 Food safety
2.4 Cyber security
2.5 Consumer preferences
2.6 Third-party supplier risks
2.7 Industrial action
2.8 Insufficient electricity supply
2.9 Security of food supply
Climate change: a particular risk type
Read more on pages 37 to 42.
Marketing and
branding:
Supporting these activities
with our strategic marketing
and branding initiatives, and our
corporate social investment
(CSI) activities
Procurement:
Procuring raw materials,
ingredients, and packaging from
local and international markets
OUR VALUE
CHAIN
ACTIVITIES
Manufacturing:
Converting raw materials into
quality food, beverages, home,
and personal care products,
using Tiger Brands’ proprietary
formulations
Packaging
and logistics:
Packing our products
in branded packaging, and
distributing these products
as efficiently as possible
to consumers through
a network of customers that
include retailers,
wholesalers, and the
general trade
Research and
development:
Monitoring consumer tastes
and trends, and investing
in product and process
research and development,
to maintain a leadership
position
GROWTH OPPORTUNITIES
› Opportunities in accessing informal market (
› Changing consumer expectations on affordability, nutrition and convenience
page 45)
(
page 34)
› Improved consumer insights through big data and analytics (
› Growing consumer base in African markets (
page 47)
page 44)
OUR REVENUE STREAMS
Our revenue streams comprise product sales from:
› Grains (46%)
› Exports and International
› Consumer Brands (36%)
› Home and Personal Care (6%)
division (12%)
Material revenue differentiators
› Long-standing market-leading position in branded food
and beverages
› Our Billion Rand Brands, many of which are rated first
or second in their categories
› Robust marketing strategy, ensuring our brands remain
top-of-mind, supported by targeted investment
› Far-reaching distribution capabilities
› The strength and quality of our customer relationships
› Strong consumer insights informing our category strategies
OUR COST STREAMS
Our most significant cost streams are:
› Raw material procurement
› Sales and distribution expenses
› Marketing expenses
› Maintenance and upgrading
› Food quality and safety
› Employee wages and benefits
› Electricity and fuel
› Regulatory compliance costs
of plant and equipment
Material cost differentiators
› Our vertical supply chain
› Standardisation and simplification of group processes, systems
and practices
› Centralised procurement function leveraging scale, internally and externally
SENSITIVITY ANALYSIS
Tiger Brands’ cost base is highly sensitive to exchange rate volatility,
with ~70% of our costs directly or indirectly exposed to exchange
rates.
Variable
Forex (sensitivity to 5% weaker rand)
Domestic operations**
International and associates translation
Exports
Price increases
Effect of a 1% movement in price increases
Up
Down
Volume growth
Effect of a 1% movement in volume growth
Up
Down
Logistics
R1 increase per litre of fuel
* Impact on operating income
** Assumes no recovery in price
Impact*
(R586 million)
R66 million
R30 million
R402 million
(R402 million)
R112 million
(R112 million)
(R38 million)
VALUE OUT
Our products (outputs)
GRAINS
The most important
meal of the day made easy!
GROCERIES
BABY NUTRITION AND WELLBEING
BEVERAGES, SNACKS AND TREATS
HOME AND PERSONAL CARE
Read more on page 62.
OUR OUTCOMES
Significant impacts (positive
and negative) include:
› Consumer nutrition and health
› Natural resource use and
habitat impact from raw
materials
› Energy and water use
in manufacturing operations
› Food and packaging waste
› Employment (direct and
indirect) and associated
benefits
› Development of small
businesses
› Government tax revenue
› Financial returns
to shareholders
› Investment in infrastructure,
plant and equipment
23
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context
How we sustain value
SRC
OUR RELATIONSHIPS
IC
OUR BRAND, REPUTATION AND COMPANY CULTURE
Material inputs
Our actions to sustain value
Outcomes of our activities
Material inputs
Our actions to sustain value
Outcomes of our activities
› Engaged workforce
› Constructive relationship with
government
› Investor confidence
› Trusted brands and strong
consumer reputation
› Positive supplier and customer
relations
› Robust operating context and
strong levels of institutional
trust
Challenges in securing inputs
› Finding the right balance
in addressing the sometimes
competing interests
of stakeholders, each of whom
add value to the company
(
see page 28)
Generally positive relations across
stakeholder groups
7% reduction in consumer complaints
R18 billion B-BBEE supplier spend
R54 million spend to support black farmers and
small businesses
Year-on-year HEPS growth of 2%
Year-on-year dividend growth of 2%
Continuing concerns in certain areas
Pending listeria class action lawsuit
› Investment in employee value
proposition
› Structured engagement with
regulators; focus on compliance
and societal contributions
› Regular investor communication
› Investment in product safety
and quality
› Product and process innovation
› Active engagement with suppliers
and customers
› Trading terms that are fair, equal
and available to all customers
Strategic pillar:
› Established strong brand and
› Focus on innovation and
renovation to meet consumer
needs including on value, health
and nutrition, convenience,
e-commerce, and sustainability
› Deploy marketing best practice
toolkit across the business
› Drive relevance in value segment
by building clear benefits
of current brands
Strategic pillar:
reputation
› Unique product formulations
and trusted recipes
› Research and development
capacity
› Internal governance and
business systems
› Company culture
Challenges in securing inputs
› Constrained consumer
environment favouring
affordability over brand
› Increased retailer concentration
and growing role of private
label
› High prevalence of promotional
activity
Sustained a strong brand presence
a Billion Rand Brands sustained their brand equity and
relevance among consumers despite inflationary
pressures
a Continue to focus on our unique ability to offer local
brands with local flavours, leveraging cross-brand
collaborations to offer consumers more of what they
love
a MMASmarties Awards (effective modern marketing
in South Africa – Albany (x2), Morvite and Eat Well
Live Well)
a Heritage brand, KOO refreshed positioning and
packaging, entrenching it as SA’s No.1 tinned product,
and highlighting its “farm-to-plate” credentials
Innovation launches
› Completing 31 innovation projects across
our consumer growth areas, achieving a 3,7%
innovation rate
› Innovations include Jungle Oats functional beverages,
lower-calorie Energade drink, Jungle Crunchalots Fillows
and Crosse & Blackwell’s Kasi Magic sauces
HC
OUR PEOPLE
MC
OUR MANUFACTURING CAPACITY
Material inputs
Our actions to sustain value
Outcomes of our activities
Material inputs
Our actions to sustain value
Outcomes of our activities
› Strong and diverse board
› Experienced executive team
› 9 296 permanent employees
Challenges in securing inputs
› Technical skills shortages
› Changing employee career
expectations and priorities
› Increasing emigration from
South Africa
› Increased cost of attracting
and retaining skills
› Company underperformance
› Enabling workplace
› Implementing people strategy
to attract, retain and develop
a diverse talent base, with strong
leadership capacity
› Invested in employee reward and
personal development
opportunities
a R3,1 billion on salaries and
Investment in talent and personal development
a Accelerated core capability in manufacturing,
customer, marketing and R&D
a Launched accelerated leadership development
programme
Progress in promoting employee diversity
a 57,6% ACI representation at senior management and
benefits
64% at top management
a R93 million on employee
training and development
› Focus on diversity and
employment equity
› Embedded enhanced employee
wellbeing programme (THRIVE)
a Eliminated historical wage and salary income
differentials ahead of target
a46% female representation at senior management
and 30% at top management
Board diversity
a 46% black and 54% female on our board
a Directors with extensive FMCG knowledge, global
experience and skills in digitalisation and innovation
Improvements in employee health and safety
a One work-related fatality (2022: three)
a 0,25 lost-time injury frequency rate
(2022: 0,45)
environment with performance
and purpose-led culture
Strategic pillar:
› R1,2 billion capital expenditure
in manufacturing and distribution
capability and technology
› 22% improvement in overall
equipment effectiveness (OEE)
in focus sites over past three years
› R525 million in cost-savings
through continuous improvement
initiatives
Strategic pillar:
Continued investment in plant and equipment
Expanded capacity, optimising efficiency, upgrading
infrastructure, and realising innovation opportunities
Some challenges remain
High agricultural and other input cost inflation
Short supply of certain ingredients resulting in factory
under-recoveries
› 41 manufacturing facilities
› Efficient logistics and
distribution activities
Challenges in securing inputs
› High frequency
of loadshedding
› Knock-on effects
of loadshedding on other
municipal services such
as water and sanitation
› Inefficient local ports and other
transport routes
› Shortage of technical skills
› Civil unrest
› Adverse weather patterns
such as flooding
24
25
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context Tiger Brands Limited Integrated annual report 2023
How we sustain value continued
FC
OUR FINANCIAL STRENGTH
Material inputs
Our actions to sustain value
Outcomes of our activities
› Equity
› Borrowings
› Cash generated from
operations
Challenges in securing inputs
› Rising interest rate cycles
› Underperformance resulting
in higher cost of capital
› Implementing a fit-for-purpose
operating model with decision-
making close to the operations
› Continued operational efficiency
drive
› Strong corporate governance
structures
› Acceleration of portfolio
optimisation
› Clear guiding principles
in response to the growth
of private label
Strategic pillar:
a 21,7% return on net assets (RONA) (2022: 27,5%)
a R238 million paid in net interest (2022: R75 million)
a R2,7 billion cash generated from operations
(2022: R2,7 billion)
a Savings of R525 million (2022: R387 million)
a Total dividend per share declared: 991 cents
(2022: 973 cents)
a 15,7% return on equity (2022: 18,4%)
a ROIC of 14,7% exceeds weighted average cost
of capital of 14,1% (2022: 16,4% >13,6%)
NC
OUR RAW MATERIAL INPUTS
Material inputs
Our actions to sustain value
Outcomes of our activities
› Energy and water efficiency
measures
› Investment in renewable energy
to strengthen energy security and
reduce carbon footprint
› Innovations and partnerships
to reduce packaging and food
waste
Some progress in mitigating impacts
0,6% reduction in total GHG emissions
0,9% reduction in GHG emissions intensity
0,3% reduction in absolute energy use
0,9% reduction in electrical energy intensity
4% reduction in absolute water use
1,9% reduction in water intensity
32,1% reduction in landfill waste intensity
Strategic pillar:
Challenges remain in certain areas
The global food system is recognised as having
a significant impact on biodiversity and habitat loss,
climate change and packaging pollution, placing direct
pressure on the resources we depend on and
increasing consumer and regulatory practices
› Local and imported raw
material ingredients
› Water (municipal and own
borehole) for production
› Fuel (diesel and petrol) for
distribution and manufacture
› Energy for manufacturing
(primarily Eskom electricity)
› Fertile soil and conducive
agricultural conditions
Challenges in securing inputs
› Climate change and extreme
weather events impacting
quality, quantity and cost
› Supply disruptions in certain
key inputs due to adverse
weather patterns
› Inefficiencies at South
African ports resulting in delays
26
27
www.tigerbrands.comOverviewOur businessGovernanceOur performanceOur strategyOur operating context Our key relationships
CUSTOMERS
How we engage customers
What is important to customers
We have a structured stakeholder relations strategy in place to ensure a consistent
and proactive approach to engagement across the group.
In the table below, we identify those stakeholder groups that have a substantive impact on our ability to create value, briefly
outlining their contribution to value creation, our means of engaging with them, and each stakeholder group’s primary interests
relating to our business activities. Although we appreciate that there is often substantial diversity of perspective and interest
within each group, we believe that the interests listed below are a sufficiently accurate reflection of each group’s most material
interests regarding Tiger Brands’ activities and performance.
We do not rate the quality of our relationships with each stakeholder group, as we do not believe it is possible or useful
to generalise the quality of this relationship across an entire stakeholder group; the nature of these relationships can vary
significantly between specific members within each stakeholder group, between different divisions within the company and
the stakeholders, and between different times throughout the year.
EMPLOYEES
How we engage employees
What is important to employees
Provide the capability,
experience and innovation
required to deliver on our
business strategy
› CEO engagements
› Virtual and in-person executive leadership
engagements
› Internal website
› ROAR app designed for employee engagement
› Digital communications
› Employee hotline
› Site engagements
› Focus groups
› Extended leadership engagement session
› Notice boards and digital signage
› Employee resource groups and communities
› Talent and career development
› Remuneration and rewards
› Work-life balance
› Safety, security and wellbeing
› Strong internal engagement
› Cross-functional teamwork and collaboration
› Recognition and feedback
› Opportunities to innovate and challenge the
status quo
› Speed and visibility of decisions
Responding to employee interests (
page 55)
› Our people strategy and operating model seeks to address each one of our employee issues directly
› Employee feedback is solicited through our Voice of Tiger engagement and employee experience survey and pulse which is conducted
across all our sites in six languages
› Specific actions to address key feedback areas
› Fit-for-purpose people processes focusing on talent, capability development, leadership, rewards, wellbeing, engagement and culture
› Our THRIVE employee wellbeing programme directly supports employees and their families by proactively managing their physical,
emotional and mental wellbeing
› Tiger Trolley, a digital staff shop, is a direct response to employee needs in a socio-economically challenged environment
Label inspection in the quality laboratory at Tiger Brands’ Beverages manufacturing facility in Roodekop.
Our retail and wholesale
customers; provide consumers
with ready access to our
products
› Senior leadership engagement (top-to-top)
to align on business priorities, joint corporate
initiatives, and optimised trading practices
› Annual trading term negotiations to agree
on shared growth ambitions and associated
strategic business levers and investments
to achieve the performance objectives sets
› Joint category development planning
to collaboratively identify shared growth
opportunities and agree on joint action plans
and investments
› Regular action-planning meetings to execute
business plans, respond to tactical dynamics,
and resolve operational issues to achieve our
joint performance targets
› Routine business review sessions to identify and
address performance shortfalls as well as take
advantage of new opportunities
› Trading terms and promotional pricing that
are fair and equal, and that promote mutual
profitable growth
› Innovation, commercially attractive brand
propositions, and marketing campaigns that
appeal to their shoppers and drive profitable
basket conversion
› Operational systems and ways of working that
enhance logistics and administrative efficiencies
facilitating cost-effective speed-to-market and
continuous supply
› Stock availability and service levels
› Competitive pricing
› Promotional support
Responding to customer interests (
page 44)
› Alignment of business priorities and commitment to shared growth ambitions and action plans
› Collaborative cross-functional projects/initiatives to address prioritised business imperatives
› Tailored solutions and campaigns in support of customer-specific growth opportunities and initiatives
› Sharing of market/shopper research and knowledge to better inform business and category growth strategies
› Proactive performance reviews that identify competitive growth opportunities and risks coupled with ideas and proposals
› Utilising the Tiger basket to drive value-adding promotions through combos
CONSUMERS
How we engage consumers
What is important to consumers
By purchasing our products,
and believing in our brand, they
provide the basis for revenue
growth
› Tiger Brands website
› Promotional activities and competitions
› Information on our packaging
› Research, including continuous engagement
via consumer communities, online and offline
qualitative studies, immersions, visual diaries
and preparation
› Neuroscience to identify implicit behaviour
in-store and communication engagement
› Consumer care line
› Multi-channel approach as well as integration
of online and offline channels to provide
a seamless user engagement experience
› Cooking shows and blogs
› CSI activities, community programmes and
› Affordable, value-for-money, tasty nutrition
› Innovative products not reliant on energy supply
› Healthier choices
› Food safety and product quality
› Business leadership on social, economic, and
environmental issues
› Convenience
Responding to consumers interests (
page 48)
feeding schemes
› Tiger Brands’ portfolio aimed at democratising nutrition and driving affordable solutions through our iconic brands
› Democratising health and nutrition through education of current offerings, tiering of relevant consumer benefits and innovation
› We will continue to leverage price pack architecture to provide consumers “more for less” and more affordable packaging formats.
This year, we were able to give 250g free Jungle muesli granola as an added value initiative on an existing SKU as well as introducing
the Kasi Magic sauces under Crosse & Blackwell as a more affordable format
› Through inter-department collaboration between the Consumer Contact Centre and Tiger Brands Quality Teams, product complaints
have decreased by 7% year-on-year
› Unconstrained localisation and sensory platforms to enable agility and innovation speed-to-market
› Heritage brand, KOO, refreshed positioning and packaging, entrenching it as SA’s No.1 tinned product, and highlighting its “farm-to-plate”
credentials
› Brands like Jungle, Morvite and KOO have incorporated health and nutrition messaging into their marketing initiatives
› The Eat Well Live Well nutritional programme’s Family Food Matters behavioural science study report
› In-house sensory testing capability
28
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Our key relationships continued
GOVERNMENT
How we engage government
What is important to government
SUPPLIERS
How we engage suppliers
What is important to suppliers
Provide the regulatory
framework and informs the
socio-economic context
essential for our activities
› One-on-one engagements
› Engagements on draft regulations
› Public forums
› Industry consultative bodies
› Parliamentary processes
› Bilateral business forums
› Site visits
› Job creation and preservation
› Economic development and growth
of the township economy
› Food safety and quality
› Consumer nutrition and health
› Delivering on broad-based black economic
empowerment (B-BBEE) and boosting
employment opportunities
› Fostering growth and development of local
agricultural sector
› Meeting the relevant UN sustainable
development goals
Responding to government interests (
page 58)
› Robust safety systems in place supported by academic partnerships and consumer campaigns
› Public-private partnerships to revitalise the economy (such as the Agri Processing Master Plan)
› In-school breakfast programme in partnership with The Tiger Brands Foundation and the Department of Basic Education
› Investment in B-BBEE-verified suppliers and promotion of socio-economic development
› Internal drive to ensure representation at executive and management level
› Investment in skills development
› Active partnerships to promote agri-sector development and smallholder farmers
› Engage on draft policy and legislation
INVESTORS
How we engage investors
What is important to investors
Provide the financial capital
needed for long-term growth
› Annual and interim reports
› Presentations
› One-on-one meetings, non-deal roadshows,
investor conferences
› Site visits and themed investor days
› SENS announcements
› Dedicated investor relations function and mailbox
› Website
› Performance of key segments
› Visible execution of strategies geared towards
a value economy in the context of an increasingly
constrained consumer environment and retail
concentration
› Limited visibility of a turnaround
› Cost of one-off items and resultant value
destruction
› People culture as well as global skills shortages:
impact on the ability to attract and retain talent
› ESG performance including the cost and impact
of broader infrastructure decay
› Enhanced returns and cash flows
Responding to investor interests (
pages 42 and 62)
› Clearly articulate strategies to rectify the performance of milling and baking, and groceries
› Supplemented investor engagements with site visits and increased contact with divisional leadership
› Evidence of dedicated resources to accelerate execution of value engineering initiatives and value propositions
› Provide bi-annual updates on underlying progress that will enable turnaround and consequential talent acquisition and retention
› Clear consequence management
› Introduction of governance and remuneration roadshows to create a dialogue, giving confidence to our shareholders while contributing
to better informed board deliberations
› Comprehensive disclosure and updates on ESG including mitigating strategies
Provide the services and inputs
that form the basis of our
products and activities
› Supplier forums
› Site visits
› Supplier assessments
› Supplier relationship management via digital
platforms
› Supplier satisfaction surveys
› Timely payment and fair terms
› Collaboration and partnering
› B-BBEE commitments
› Enterprise and supplier development
› Health and safety standards
› Ease of doing business through self-service
portals
Responding to supplier interests (
page 50)
› Negotiate with strategic suppliers to secure requirements
› Collaborating with Tiger Brands’ Enterprise and Supplier Development programme to diversify the supply base with a focus on
black-owned and black women-owned suppliers
› Engage key suppliers to drive procurement efficiencies and improve B-BBEE commitments and innovation
› Reviewed supplier quality programme being rolled out in line with enhanced internal quality protocols
› Utilise technology to enhance communication and administrative channels
› Develop category strategies to work with suppliers beyond a price focus
COMMUNITIES
How we engage communities
What is important to communities
Provide the social capital and
licence to operate for the
business to succeed
› Community NGO implementation partners
› Community social mapping to identify
opportunities to share value
› Community mobilisation and interaction
on SED and ESD projects
› Collaborative partnerships with industry peers
› Food security and related nutrition issues
› Stimulate economic activity to support and
sustain community enterprise development
and job creation
› Impact of our operations on host communities
› Employment and business opportunities
Responding to community interests (
page 58)
› Partner with government, industry peers and developmental agencies to promote nutrition, health and education, and contribute
to community development and poverty alleviation
› Initiatives in place on enterprise and supplier development and community investment
› Addressing environmental impacts of our operations on our host communities
30
31
Albany is South Africa’s most-loved bread brand. With 12 bakeries and almost 1 000 trucks, Albany produces
480 million loaves of bread a year and distributes to over 40 000 outlets daily.
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Our operating environment
Our ability to create value, and to deliver on our purpose, is significantly affected
by the changing dynamics in our external operating environment.
We have identified five interconnected trends that are having a material impact on our business model and that have informed
our strategic response:
1. An unsettled global and regional macro-economic environment
2. Profound socio-economic challenges in South Africa, impacting consumer confidence
3. Changing customer and consumer dynamics
4. The impact of digital technologies
5. The rising impact of ESG and sustainability-related considerations
Each of these trends brings challenges and opportunities, highlighting the critical importance of having the right skills, operating
processes, leadership and culture to ensure Tiger Brands’ continued growth.
1. AN UNSETTLED GLOBAL AND
REGIONAL MACRO-ECONOMIC
ENVIRONMENT
› The global economy has had a challenging year. Initial signs
of a post-COVID-19 recovery are in danger of being
reversed, with global trade under pressure in the face
of continuing geopolitical instability, weakening global
demand, and tighter monetary and fiscal policies
in response to stubborn inflation
› Commodity prices and foreign exchange markets have been
volatile, while fuel prices have increased, driven by rising
global oil prices off the back of slow demand and decreased
output. This has been exacerbated by the increasing
incidence of extreme weather-related events impacting
global supply chains
› The outlook remains uncertain, with sluggish growth
anticipated amid growing concerns around the fragility of the
Chinese economy. The country’s post-pandemic recovery
has been slower than expected, with lower global demand
putting deflationary pressure on the world’s second-largest
economy, which is also facing a potential property bubble
› Our markets across Africa face their own macro-economic
challenges, characterised by growing youth unemployment,
accelerating food inflation, high levels of income disparity
and continuing political instability. Regionally, the political
landscape is clouded in many countries by mismanagement,
corruption, political intolerance and popular protests, with
post-election violence increasingly a feature in many
electoral cycles
Our strategic response
› In the context of a subdued economic outlook –
and given our exposure as a premium-priced
brand in staple products – we have strengthened
our focus on driving operational efficiencies and
delivering a step-change in our innovation
practices and in the nature of our customer and
consumer engagement
› Three years ago, we introduced a more
systematic approach to driving a culture of
cost-saving and efficiencies across the business,
changing the governance structures, improving
accountabilities, and strengthening our central
revenue management capability within each
of our business units. This year, we maintained
our focus on this efficiency drive, delivering
R525 million in savings over the year
› To improve productivity and secure long-term
cost-savings across our supply chain, we have
made further investments in improving our
manufacturing operations – expanding capacity,
optimising efficiency, replacing ageing equipment,
upgrading infrastructure and realising innovation
opportunities
› In response to the increasingly challenging
geopolitical landscape and growing supply chain
vulnerabilities, we have further strengthened our
centralised procurement capabilities and shifted
our focus towards mitigating supplier risk,
ensuring seamless supply chain continuity and
managing inflationary pressures
32
2. PROFOUND SOCIO-ECONOMIC
CHALLENGES IN SOUTH AFRICA
IMPACTING CONSUMER CONFIDENCE
› South Africa’s economic prospects continue to be constrained by
record-high levels of unemployment and loadshedding, significant
infrastructure bottlenecks, persistent crime and corruption and
dysfunctional local municipalities. The country has among the world’s
highest rates of inequality and unemployment, which is constraining
economic activity and feeding growing youth alienation and heightened
potential for social unrest amid broader frustration with poor levels
of service delivery and weak political leadership. The business sector
is faced with significant policy and regulatory uncertainty in the run-up
to next year’s election that may result in a new coalition government
› Over the past 10 years, the value of the rand has depreciated 86%
against the US dollar, significantly increasing the cost of imported goods,
and contributing to the country’s inflation rate, which has been above 4%
on average for the past five years
› This year, consumer confidence plummeted to its second-lowest level
since 1994, reflecting consumers’ concerns with the country’s economic
prospects and the sustained pressure on disposable income due to high
interest rates and debt levels, and soaring fuel and food prices. While food
price inflation has been easing recently in much of the rest of the world,
South Africa’s consumer food inflation has continued to accelerate this
year, reaching 7% for the year ended September 2023
› We are now operating in an environment where the anticipated emerging
middle class is submerging under sustained waves of economic
challenges, with brand loyalty under pressure across the food and FMCG
sectors. Consumers are trading down, reducing demand for discretionary
and premium products, switching to cheaper value offerings, and showing
a heightened reliance on promotional pricing and growing shift to private
label, with brand-loyal customers reverting to smaller pack sizes. With
heightened price competition, volumes and margins are threatened, and
cost recovery ahead of inflation remains a challenge
› The outlook is not encouraging, with a tougher trading environment
anticipated due to the flat economy, downward pressure on our currency,
continuing high rates of unemployment and indebtedness, and ongoing
electricity supply constraints, on top of local political uncertainty and the
potential for social unrest
Our strategic response
› Meeting the needs of the value-seeking
consumer is a critical basis for fuelling Tiger
Brand’s growth objectives. In responding
to the affordability imperative, we have been
enhancing the affordability and accessibility
of our existing and new product offerings
through appropriate pack, price and
channel architecture, realising opportunities
for product and packaging innovation, and
harnessing effective distribution channels,
supported by value marketing and
consumer engagement campaigns
to highlight the value benefits of our current
brands. We are continuing to rationalise
our brand and product portfolio, seeking
to preserve margins by focusing resources
on our best-performing lines
› As reviewed in more detail in our response
to the increasingly competitive retail sector
and shifting consumer dynamics, we are
actively expanding our reach in general
trade, and we have refreshed our strategy
to best defend our product offerings against
the increasing threat of private label
› In seeking to alleviate some of the
underlying socio-economic challenges
facing South Africa, we are continuing
in our efforts to boost economic
opportunities and improve the livelihoods
of thousands of people across our value
chain through a deliberate focus
on supporting black/black-women farmers
and owned enterprises as part of our
enterprise and supplier development
activities, and our preferential
procurement practices
HOUSEHOLD AFFORDABILITY INDEX – LOW-INCOME HOUSEHOLD
+7%
Average cost
of household
food basket
+8,1%
Basket of core
foods
+9%
Cost for a basic
nutritional food basket
for a family of seven
Source: Econometrix, PPEJDG, Deloitte
33
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Our operating environment continued
3. AN INCREASINGLY COMPETITIVE
MARKET RESPONDING TO SHIFTING
CONSUMER DYNAMICS
› In response to challenging market conditions – as well
as drivers such as increasing digitisation, growing
urbanisation, busier lifestyles and changing aspirations
relating to healthier eating and ethical sourcing – consumers
are changing their purchasing patterns. They are typically
shopping less frequently, across fewer categories, and
at fewer retailers, for bigger baskets, with growth biased
towards essential categories, while demanding more
in terms of affordability, convenience and quality
› Responding effectively to these changing consumer
dynamics has intensified competition across the sector, with
food retailers and wholesalers looking to defend and grow
market share by being more precise and deliberate in their
consumer engagement strategies. Retailers are
strengthening their analysis of shopper behaviour and
leveraging basket data to segment stores to satisfy specific
shoppers through targeted ranging, pricing and promotions
› At the same time, we are seeing fundamental shifts in our
route-to-market, with supermarkets facing strong
competition from mixed and wholesale retailers, emerging
informal players, and convenience retail solutions such
as forecourts and e-commerce. Informal independent
traders, such as spaza shops and superettes, contribute
roughly 26% of the FMCG market in South Africa, and have
faster growth rates than the modern market. There has also
been a continued rise in e-commerce, with online retail sales
doubling in the country in roughly two years. These
developments are requiring us to revise our channel
strategies and further strengthen customer engagement
and service levels
Our strategic response
› To capitalise on emerging consumer trends,
we are creating a more streamlined two-track
innovation process that balances the benefits
of agility with more traditional linear product
development. This will ensure continued
renovation of core products, while encouraging
experimentation with higher-risk, high-reward
innovations to meet emerging consumer
preferences where speed-to-market is more
important. We have prioritised three growth
platforms for innovation: driving affordability
to meet the needs of value-seeking consumers;
democratising health and nutrition; and owning
relevant demand spaces in key snacking
categories. In doing so, we are placing
a strengthened focus on reducing artificial
ingredients and leveraging natural and home-
grown credentials to differentiate
on authenticity and health
› To ensure more effective penetration
in a challenging market, we have prioritised
the execution of shopper-centric segmentation
of our trade channels. Deepening our insight
of broad shopper profiles is informing our
shopper activation and store execution plans,
enhancing our consumer marketing campaigns,
and ensuring more targeted pricing, promotions,
and price and pack architecture
CONSUMER STATE OF MIND
Financial
state
of mind
40%
Have money left over
at end of the month
after expenses
Cost-
saving
behaviours
47%
Dedicated more
time to planning
their shopping
60%
Feel their financial
situation stayed the
same/worsened over
the past year
42%
Like to choose meals
to make the most
of the food they
already have at home
63%
Concerned about their level
of savings and the lack
of confidence in their
capacity to absorb any
financial shock
31%
Switched to cheaper
proteins and buying
store brands
34
› We are continuing to see aggressive competitor pricing,
as well as increasing sophistication in private-label
penetration, both of which are placing pressure
on branded product volumes and margins
› As convenience and value have become key drivers
of consumer choice, and informal players capture
consumers closer to home, a shift to smaller pack sizes
has enabled market expansion and affordable price points
4. DIGITAL TECHNOLOGIES AND
E-COMMERCE
› Growing levels of digitalisation, and the rapid rise of artificial
intelligence, big data and data analytics are transforming
business models across all sectors, presenting profound
opportunities and significant risks. Digitally savvy consumers
increasingly expect their shopping experience to be
as frictionless as possible and now have a strengthened
ability to mobilise market sentiment. Similarly, the increase
in digitally based hybrid work has fundamentally reshaped
the office experience and become an important feature
in attracting and retaining talent
› Digital tools and technologies are generating significant
efficiencies, allowing companies to rapidly identify and adapt
to changing consumer preferences, and providing exciting
opportunities for business innovation. Seizing these
opportunities effectively, and staying ahead of competitors,
requires new talent, skills and work patterns, as well as the
ability to manage heightened cyber security risks
› In South Africa, we have seen significant growth in Bricks
and Clicks grocery e-tailers (such as Checkers’ Sixty60 and
Pick n Pay’s ASAP), as well as more non-grocery platforms
starting to drive groceries on their platform (such as Mr D).
There has been continued uptake of Pure Play e-commerce
initiatives – in the form of e-tailers (such as Takealot) and
super apps (such as Nedbank Avo), with the online retail
giant Amazon expected to launch in the country soon –
as well as increasing growth in direct-to-consumer initiatives
› In response to the growing importance of the informal
market, we are pursuing various initiatives to expand
our reach in general trade. Following an aggressive
roll-out plan, we have reached 50 000 general trade
stores this year and aim to expand our presence
to 130 000 stores over the next five years
› We have refreshed our strategy to best defend our
product offerings against the increasing threat
of private label by further investing in our brands,
building our innovation capabilities, and offering
consumers choice through our premium and
value offerings
Our strategic response
› We have continued to drive various initiatives
to raise our online presence and become the
preferred supplier to prioritised digital
e-commerce partners. We have made further
progress this year in each of the targeted focus
areas: delivering focused category/brand activity
with leading grocery e-tailers; enhancing our
online presence through joint strategic initiatives
with platforms such as Takealot; scaling up our
pilot online shop (Tiger Trolley) as a test case
direct-to-consumer platform; and strengthening
our social e-commerce strategy
› Last year, the Tiger Brands board approved
a new digital strategy that provides
a comprehensive framework and roadmap
to leverage digital technologies to improve
productivity, drive growth and enhance the
experience of our customers, consumers,
service partners and employees. This year,
our primary focus has been ensuring effective
execution of our prioritised digitisation initiatives
in three areas: food safety and quality; digitising
the freight desk for both import and export
goods; and uplifting our procurement
capabilities. During the year, we have also
deepened the operational proficiency of our
cyber risk management processes. We have
completed our digital prioritisation process for
next year, identifying various specific
programmes for in-depth investigation, including
specifically in customer and marketing analytics,
our people strategy, and order and returns
management
35
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Our operating environment continued
Material risks and opportunities
5. THE RISING IMPACT OF ESG AND
SUSTAINABILITY-RELATED
CONSIDERATIONS
› Interconnected social and environmental pressures are
having a more visible direct impact on markets and
businesses, globally and locally. The increased frequency
and severity of extreme weather events, floods, droughts
and wildfires – seen this year across the world – has
highlighted the risks for the availability, quality and pricing
of essential raw materials, for the resilience of distribution
and supply chains, and for the robustness of manufacturing
and productivity. Similarly, the recent civil unrest in South
Africa has arguably sharpened business and investor
appreciation of the commercial impacts associated with
persistent inequality, poverty and joblessness
› The growing visibility of social and environmental pressures
is prompting greater regulatory intervention – including for
example new and/or strengthened regulation on sodium
reduction, extended producer responsibility, food labelling,
marketing to children, and taxes on sugar and carbon – all
of which has a material impact on our business activities
› A failure to demonstrate effective response measures
on issues such as economic transformation, public health,
food security and climate change can damage
a company’s reputation, market share and ability to attract
talent, particularly in the context of rising social and
shareholder activism
› Many middle and high-income consumers are now looking
behind the brand to assess whether the operating
practices and impacts of food producers are aligned with
their values, showing an increasing willingness to trade off
on price in favour of health and sustainability priorities.
In some market segments, we are seeing growing demand
for brands-with-purpose, sustainable and local products,
plant-based proteins, ethical marketing, and front-of-pack
nutrition labels. Globally, there is an increasing preference
for local ingredients, given these products are often
perceived as healthier and more sustainable, trustworthy
and authentic
› Within this context, there has been a marked increase
in investor engagement on companies’ environmental,
social and governance (ESG) performance and disclosure
amid significant changes in global reporting standards and
frameworks. The publication this year of the first set
of IFRS Sustainability Disclosure Standards, the European
Sustainability Reporting Standards (ESRS), and the
recommendations of the Task Force on Nature-related
Financial Disclosures (TNFD) signals a material shift
in global sustainability reporting
Our strategic response
› As one of the largest food companies in South Africa
and across the continent, we recognise that we have
a substantial role to play in facilitating access
to affordable nutrition, shaping employment,
enterprise development, and skills development
opportunities, respecting human rights, entrenching
fair labour and remuneration practices, and promoting
responsible environmental practices within our
operations and across our supply chain
› Our forward-looking approach to addressing our
sustainability impacts is reflected in our sustainable
future strategy. This strategy comprises three focus
areas – health and nutrition, enhanced livelihoods and
environmental stewardship – underpinned by a set
of strategic enablers aimed at building a strong
foundation for responsible business practice
› We have made further progress this year on our
commitment to empower consumers to improve their
health and wellbeing by launching various food
products that are more nutritious and affordable,
developing best-in-class nutritional standards, and
leveraging our brand and marketing activities
to promote consumer nutrition. We have continued
to invest in strengthening product quality and food
safety across the company to ensure that we have
robust systems, qualified people, and a strong quality
and safety culture, achieving external certification for
all our manufacturing facilities against globally
recognised food safety standards
› We are continuing in our efforts to improve the
livelihoods of thousands of people across our value
chain, using our procurement practices and our
investment in supplier and enterprise development
to stimulate economic opportunities, including through
a specific focus on supporting black/black-women
farmers and owned enterprises
› We have also made further progress in reducing our
environmental impact through various initiatives,
including investments in renewable energy, optimising
energy and water consumption in our operations, and
minimising waste, effluent, and emissions. We are
continuing to explore innovative opportunities for
circular economy interventions in areas such
as packaging and food waste, as well as leveraging
our brand and marketing activities to inspire positive
behaviour change
Risk management arrangements
We manage our risks and opportunities to support the achievement of our strategic objectives by identifying opportunities
to protect, create and capture value. Our risk management arrangements align with the principles of King IV™, ISO 31000:2018,
and generally accepted good practice in a manner that is fit-for-purpose. Ultimate accountability for the adequacy of the risk
management programme across Tiger Brands rests with the board. The board has assigned oversight responsibilities for risk
governance and the development of appropriate organisational and cultural maturity to the risk and sustainability committee.
The group executive committee, supported by category-level executive committees, is tasked with the design, implementation
and operation of the risk management system. Category-level management teams, supported by group operations,
continuously monitor and manage their risk profiles, and are responsible for developing and maintaining an appropriate risk-
aware culture.
Risk profiling and oversight
We adopt a comprehensive approach to identifying risks that
includes a top-down as well as bottom-up analysis. The
top-down approach starts with a group view of Tiger Brands,
where consideration is given to the operating environment, the
business model, and the associated objectives and strategies
defined by the group. Similarly, category leadership is required
to analyse their operating environments, business models,
products and strategies to identify category-specific risks;
these are also reported at the group level for oversight.
Common category-level risks are then identified, which may
be escalated and managed at the group level as needed.
In addition to identifying risks that impact our ability to achieve
our organisational objectives, management also considers
factors that may develop into risks, even in those instances
where our understanding of these factors is not sufficient
to develop comprehensive mitigating strategies. These are
termed ‘emerging risks’ and are also tracked through the
various oversight structures following a top-down and bottom-
up identification process.
We believe that effective risk management practices generate
additional benefits beyond the value protection outcomes typically
associated with risk remediation activities. As part of its risk
analysis process, management identifies and reviews
opportunities to create or enhance competitive advantage, and/or
increase our reputation, with a view to optimising value creation.
The group executive committee oversees the identification
of group risks and responses. Category-level management
oversees and manages category-specific risks and reports the
material risks to the group executive committee through the
operational risk management committee. A consolidated Tiger
Brands risk profile is then compiled and reported to the board
risk and sustainability committee before being submitted to the
board. In addition to the analysis and remediation of top risks,
we maintain a combined assurance programme that aims
to provide stakeholders with comfort that the control measures
deployed to shape risks are adequate and effective.
Risk appetite and tolerance
General risk appetite and tolerance ranges are defined by group
executive management and annually approved by the board.
These ranges are reflected in the heat maps and provide
general guidance regarding expected responses to the mapped
risks.
For each risk, group executive management determines
a targeted residual risk level that represents risk-specific
appetite levels. These targets are set against the backdrop
of the approved risk appetite and tolerance ranges and more
specifically define the nature and extent of each risk’s control
improvement plan. This target and the associated control
improvement plan is subject to management and non-executive
director oversight in accordance with Tiger Brands’ risk
management policy.
While the group will accept risk to achieve its ambitions of being
a market-leading, international, diversified FMCG company,
Tiger Brands has an aversion to risk in the areas of food safety,
the delivery of quality products, and loss of life.
36
PURITY is the market leader in baby nutrition, offering 145 variants, all specially
developed to meet the nutritional and care needs of mothers, babies and toddlers.
37
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Material risks and opportunities continued
Our top risks
Our material risks are those that exceed our residual risk tolerance level and are
thus identified as having the most material implications for Tiger Brands and its
stakeholders.
The following table reviews the
implications, mitigation measures, and
year-on-year trend in the risk rating for
each of our top risks.
The inherent risk heat map presented below represents the inherent risk profile
of our material risks. Without adequate remediation, the risks are potentially
a threat to the group as a going concern and thus merit management attention.
Following management’s intervention through various remediation programmes
the material risk profile shows a marked improvement, albeit still in need
of further remediation. This is outlined below in our residual risk heat map.
INHERENT RISK MAP
Catastrophic – 5
Critical – 4
Significant – 3
Minor – 2
t
c
a
p
m
I
Insignificant – 1
1.1
2.1
2.2
2.3
2.4
1.2
2.6
2.7
2.8
2.9
1 – Unlikely
2 – Possible
3 – Likely
4 – Almost certain
Likelihood
RESIDUAL RISK MAP
Catastrophic – 5
Critical – 4
t
c
a
p
m
I
Significant – 3
Minor – 2
Insignificant – 1
2.2
2.3
2.4
2.5
2.6
1.2
1.1
2.7
2.1
2.8
2.9
1
Unlikely
2
Possible
3
Likely
4
Almost certain
Likelihood
The positioning of cost competitiveness does not appear to improve on the
back of implemented control processes. This reflects our cautious stance
on risk. Although we are confident in our response strategies, we monitor the
risk for evidence of control effectiveness before adjusting residual risk ratings,
a position that permeates across all our risks.
In addition to the risks listed below, we recognise that climate-related risks are
becoming increasingly significant, not only directly to our business model but
also at a broader economy-wide level. Given the growing materiality of this
issue, we are maturing our processes to identify, assess and remediate the
climate-related risks across our value chain.
38
Material risk
1.1 MARKET
RESPONSIVENESS
Responsiveness to an evolving trade
environment, blurring of channels and
trade concentration.
Risk trend
2022 Ranking (Joint 3)
Context and value impact
Meeting and exceeding customer and
consumer needs and wants is the
lifeblood of our business.
With consumer spending remaining
depressed and competition high, this
challenge remains material and
threatens our market share, brand
strength, profitability and penetration
Mitigating actions
Our mitigation actions continue to
revolve around the following key themes:
› Collaborating with customers and
researchers to better understand
market needs and wants while
leveraging insights garnered by our
own consumer insights division
› Joint business planning with
customers to ensure we leverage
activity to mitigate adverse market
dynamics and respond
to consumer needs
› Ensuring that product and
customer mix are optimal
› Maximising service levels to ensure
product availability at locations
through joint forecasting with
customers
› Deploying promotions to meet
evolving shopper needs
› Price-pack tiering to ensure
affordability of our lines
› Creating differentiated value
proposition to ensure we create
value to shoppers through our
offerings
› Ongoing review of pricing
strategies to ensure
competitiveness
Material risk
1.2 COST
COMPETITIVENESS
Decline in competitiveness due to
higher input costs across the
value chain, specifically in
procurement, manufacturing,
packaging and logistics and
corporate costs.
Material risk
2.1 PEOPLE
SECURITY
Material risk
2.2 PEOPLE
SAFETY
Material risk
2.3 FOOD
SAFETY
Failing to provide a secure work
environment for employees,
contractors and visitors.
Failing to provide an adequately
safe operating environment for
employees partners and visitors.
Harm to the consumer caused
either by food-borne illnesses
relevant to our food products, or
undesired skin/body reactions
relevant to our personal and home
care products.
Risk trend
2022 Ranking (Joint 3)
Risk trend:
2022 Ranking (new)
Risk trend
Risk trend
2022 Ranking (Joint 3)
2022 Ranking (Joint 3)
Context and value impact
Context and value impact
Context and value impact
Context and value impact
Our supply chain remains a
central component of our ability
to remain cost-competitive, and
also has a direct impact on our
climate-change aspirations.
The efficiency of our inbound and
outbound logistics, together with
heightened pressure on our
manufacturing capabilities
caused by electricity disruptions
(refer to 2.8 below), are dominant
drivers of this risk.
The physical and transition risks
of climate change are also
increasingly being felt across the
supply chain, resulting in cost
escalations and disruptions in
procurement and logistics.
Mitigating actions
Our initiatives are predominantly
focused on improving efficiency
and effectiveness in four areas:
› Prioritising the availability
of stock to ensure consistent
service levels
› Maximising the efficiency
of our logistics value chain
› Optimising our manufacturing
to reduce material usage
variances and improve overall
plant efficiency
› Enhancing management
forecasting, renegotiating
creditor terms and conditions,
and careful oversight
Manufacturing is an inherently
dangerous environment. This
risk is further elevated when
contractors, temporary staff and
visitors enter our premises. It is
within this context that we
continue to pursue zero harm,
which is founded on solid
occupational health and safety
compliance and due diligence
processes. Although we have
seen a marked improvement in
our OHS performance during
2023, there is still some room
for improvement.
Mitigating actions
Tiger Brands’ comprehensive
approach to OHS management
aims to prevent incidents of
injury and provide quality
incident response capability. Our
approach is risk-based and
supported by our combined
assurance programme to identify
and rectify areas of
improvement, which are unified
and expressed in a five-year
strategy.
Strategic pillar:
The security of our employees,
partners and visitors is of
cardinal importance to Tiger
Brands.
Threats to security may be
experienced on our premises, en
route to our premises, and
off-site (for example during the
delivery of product). Common
drivers of threats include criminal
elements intent on intimidation,
covering up of theft, labour
disputes and wage negotiations.
This risk is distinct from
occupational health and safety.
Mitigating actions
Our measures aim to provide
a foundation of safety protocols
to guide appropriate behaviour,
reduce the likelihood of
occurrence and ensure effective
responses should the risk occur.
These include effective labour
and union engagement,
collaborating with law
enforcement agencies and
related parties, deploying
technology for rapid alert and
response action, security vetting
of employees and partners, and
effective disciplinary processes.
Strategic pillar:
We have elected to split food
safety and product quality risks
to better manage the underlying
drivers. Food products have
inherent potential to lead to
health concerns for consumers
and thus remain at the forefront
of management’s attention given
our strong risk-averse stance on
issues relating to public health
and safety.
Mitigating actions
The nature of food safety
demands that we approach it
in a scientific and systematic
manner to ensure consistent and
repeatable results. To this end,
we have implemented:
› Quality risk assessment and
management protocols
(including incident
management processes)
› Industry hygiene and quality
standards, including the
development and roll-out
of 60 new internal Tiger
Brands group quality and food
safety standards
› External certifications of all our
manufacturing facilities
› Positive release protocols
› Operational monitoring and
reporting processes
› Extensive ongoing employee
training programmes
A key improvement initiative
starting in FY23 has been the
roll-out of a technology-enabled
quality system to be phased in
over the next three years.
Strategic pillar:
39
Strategic pillar:
Legend – Risk trend:
– Up
– Down
– Stable
Strategic pillar:
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Material risks and opportunities continued
Material risk
2.4 CYBER
SECURITY
Material risk
Material risk
2.5 CONSUMER
PREFERENCES
2.6 THIRD-PARTY
SUPPLIER RISKS
Any risk of financial loss, disruption or
damage to Tiger Brands’ reputation
due to failures of its information
technology systems because of
large-scale cyber security attacks.
Risk trend
2022 Ranking (Joint 3)
Failure to understand and respond
effectively to changing consumer
demographics and spend, as well as
consumption behaviour and patterns.
Risk trend:
2022 Ranking (Joint 3)
Deteriorating disposable income levels
driven by cyclical macro-challenges
is resulting in an increased year-on-
year ranking.
Failing to adequately manage
risks associated with outsourced
manufacturing, and in-bound supply.
Risk trend:
2022 Ranking (Joint 3)
Material risk
2.7 INDUSTRIAL
ACTION
Deteriorating labour relations and
associated disruption to our value
chain.
Risk trend
2022 Ranking (Joint 3)
Material risk
Material risk
2.8 INSUFFICIENT
ELECTRICITY SUPPLY
2.9 SECURITY OF
FOOD SUPPLY
Insufficient availability, or inadequate
quality of supplied electricity.
Risk trend:
2022 Ranking (New)
Increasing instances of loadshedding
experienced.
Brand rationalisation due to adverse
climatic conditions, deteriorating
socio-economic norms, and evolving
legal frameworks.
Risk trend:
2022 Ranking (new)
Climate-related impacts are increasingly
affecting our supply chain, putting at risk
the security of ongoing production
of food.
Context and value impact
Increasing interconnectivity,
globalisation and commercialisation
of cyber crime are driving greater
frequency and severity of cyber
incidents, including data breaches.
This can compromise the
confidentiality, integrity and availability
of information and technology
resources, lead to disclosure of
commercially sensitive information,
intellectual property and/or disruption
to operations. In addition to
non-compliance risks, the release of
any personal information also has
negative reputational and brand
implications.
Mitigating actions
Our cyber-security measures aim
to mitigate key risks identified through
independent cyber assessments.
› We have purchased and are
implementing various core
capabilities
› We have added strong skill sets
to the team through vendor
partnerships to ensure we are
ready to respond to any cyber
incident
› We are building capacity to ensure
monthly reporting on our cyber-
security status; this is critical
in ensuring that identified gaps are
continuously addressed
Strategic pillar:
40
Context and value impact
Context and value impact
Context and value impact
Context and value impact
Context and value impact
Consumer preferences are dynamic,
requiring early signal detection and
rapid response. Our ability to respond
effectively to these changes is
influenced by the following:
› Failure to detect signals in a timely
manner
› Factory constraints
› Third-party supplier constraints
› The nature of our supply chain
dynamics
› Innovation process not fit-for-purpose
These factors accumulate and require
a comprehensive and effective response
in a timely manner to allow for
differentiation in a very competitive
market.
Mitigating actions
Our mitigation programme
is centred around the following key
activities:
› Internal and third-party market and
consumer research
› Factory design optimisation
(see also risk 1.2)
› Third-party supplier management
(see also risk 2.6)
› Consumer satisfaction monitoring
› Accelerating the quality, speed and
commercial value of our innovation
by the introduction of a new
process, which went live
on 1 October 2023
Strategic pillar:
Tiger Brands collaborates with
various supply chain partners to
deliver on its strategies. These
suppliers provide raw materials,
ingredients and packaging, and in
some instances finished goods, that
are subject to quality control
processes outside of our protocols.
Failure to ensure adherence to Tiger
Brands’ specifications and standards
may erode consumer satisfaction,
profitability, and brand equity.
Mitigating actions
Relationships with these suppliers
and manufacturers are carefully
contracted to maintain Tiger Brands’
quality requirements and allow for
effective performance management.
All potential suppliers are put through
a rigorous assessment and on-
boarding programme to ensure they
are aligned with Tiger Brands’
commitment to quality and standards
throughout the product life cycle.
Beyond contractual compliance
management, we also implement
physical inspections upon delivery;
where appropriate, we obtain
certificates of analysis.
We also roll out our supply quality
assurance (SQA) audit programmes
to provide necessary assurances.
Consumer complaints are closely
monitored and investigated where
necessary.
Strategic pillar:
Within a context of labour-dependent
manufacturing that is unionised, the
threat of industrial action remains
prevalent, especially during wage
negotiations.
Failure to contain industrial action
may lead to loss of sales, erosion of
profitability and market share.
Mitigating actions
› We are embedding an employee
relations strategy geared towards
creating labour stability and
providing a great place to work
› We are delivering employee
engagement and shop-floor
development programmes
› We continuously review our
remuneration policies and practices
to ensure competitiveness and
relevance
› Implementing a business continuity
plan
Strategic pillar:
South Africa’s electricity generation
capacity is increasingly under
pressure because of inadequate
capacity expansion.
The resultant loadshedding and
fluctuating quality of electricity supply
impacts adversely on our production
capability, costs (see 1.2), and our
environmental stewardship
aspirations.
Mitigating actions
› Our initiatives have focused
on generating electricity onsite
through mobile generator capacity
and renewable sources such
as solar. In addition, we actively
protect our equipment from
electricity surges that are linked
to loadshedding, and continue
to identify opportunities for energy
efficiency
Strategic pillar:
Our global supply chain is increasingly
impacted by climatic conditions that
impact not only the location,
availability, accessibility, and price of
our raw materials, but also
downstream factors such as logistics
and regional legal requirements.
Mitigating actions
Our mitigation response targets the
following:
› Ongoing identification of alternative
source markets for raw materials,
and/or researching the use
of substitutes for raw materials
› Reformulating products to use
more readily available, accessible,
and price-viable ingredients, and/or
optimise our manufacturing
processes to accommodate
reformulated products
› Stockpiling of raw materials
to protect against shortages,
inaccessibility or price volatility
› Application of technology
or alternative processes to improve
production of raw material
or substitutes, and enhance
forecasting of key aspects such
as planting dates and precipitation
patterns
› Enterprise development initiatives
develop and promote sustainable
farming of desired raw materials
Strategic pillar:
41
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Material risks and opportunities continued
Our strategy
Climate change: a particular risk type
We do not classify climate change as a single risk. In our minds, it is too wide
a risk definition to effectively respond to all its drivers and consequences
in a single mitigating strategy.
Consequently, we refer to climate change as a “risk type” to ensure that
it receives due consideration when emerging and active risks are identified
across our value chain.
Our drive to identify and respond to specific climate-related risks is gaining momentum. This year, we have taken
some pragmatic steps to identify and assess specific climate-related risks, including engaging with internal and
external specialists. For example, we have engaged a water specialist to undertake an assessment of water
security risks across our value chain, and we have had internal discussions with our agricultural commodity
managers to explore the security of food supply as a specific concern.
Climate-related risks are identified, managed and reported on through the established Tiger Brands risk
methodology and structures to ensure that it is not a stand-alone consideration but fully integrated with our
business oversight and management practices.
The table below provides a generalised overview of the climate-related risks, opportunities and impacts of greatest
significance for our business.
Risks
Supply chain
disruptions
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.
Regulatory and
legal risks
New legislative requirements, including new taxes and stricter regulation on environment and health, present
legal and compliance risks.
Reputational risk
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.
Opportunities
Resource
efficiency
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 sustainability report).
Sustainable and
resilient supply
chains
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 sustainability report).
Waste reduction
and circular
economy
initiatives
Reducing packaging and food waste, as well as developing innovative new packaging solutions, service models,
and circular material flows, offers 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 sustainability report).
Impacts
Greenhouse gas
(GHG) emissions
Resource use
42
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 landfill contributes to climate change through the release of methane.
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.
Tiger Brands is one of Africa’s largest listed manufacturers of fast-moving
consumer goods (FMCG). Our core business is the manufacture, marketing and
distribution of everyday branded food and beverages. Our products are relevant
across every meal occasion and are well-positioned to grow. The portfolio also
includes leading brands in the Home and Personal Care segments and we have
a growing presence in Africa.
OUR PURPOSE IS TO NOURISH AND NURTURE MORE LIVES EVERY DAY
DELIVERING ON OUR PURPOSE: OUR STRATEGY
Building a
growth pipeline
Meeting the needs
of the consumer
Optimising our
supply chain
› Innovation
› Optimising our product portfolio
› Winning at the point of purchase
› Growth in Africa
› Affordability
› Health and nutrition
› Snackification
› World-class manufacturing facilities
› Product quality and safety
› Procurement
› Logistics
Being obsessed
about cost-savings
and efficiencies
Igniting
our people
Investing in a
sustainable future
› Unlocking costs and cash
› Digital transformation
› Talent
› Leadership
› Great place to work
› Health and nutrition
› Enhanced livelihoods
› Environmental stewardship
OUR VALUES
We treat each
other with care
and respect
We deliver with
passion and
excellence
Safety and
quality are
non-negotiable
for us
We embrace
diversity and
inclusivity
We act with
integrity and
accountability in
all we do
WINNING BEHAVIOURS
Consumer
obsession
Teamwork
Empowered
accountability
Focused
execution
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur operating contextOur businessGovernanceOur performanceOur strategy Building a
growth pipeline
To realise our ambition of building a growth pipeline through best-in-
class category, channel and customer strategies, we have been driving
an innovation pipeline, optimising our product portfolio, winning at the
point of purchase and pursuing growth in Africa.
Performance
summary 2023
Positive developments
› Expanded our reach in the booming
South African informal sector, securing
50 000 general trade stores since inception
› Made progress in further raising our online
presence and becoming a preferred
supplier to prioritised e-commerce partners
› Improved in-market execution and optimal
pricing in Rest of Africa (RoA), reflected in
significant profit growth
Opportunities for
improvement
› Improving the quality and speed of
execution of our innovation and R&D
activities
› Accelerating initiatives to further improve
customer service levels
› Intensifying dedicated customer forums
across all customers
Delivering growth through innovation enablement
Driving constant innovation in our products, packaging and processes is
critical to delivering on our growth ambitions and to ensuring that we
continue to meet the constantly evolving needs of the consumer. Although
Tiger Brands has a recent history of some strong innovation, we recognise
that there is significant scope to improve the quality and speed of execution
of our innovation and R&D functions. We believe that our recent innovation
activities – from ideation through commercialisation to execution – have not
fully counterbalanced the increasing commoditisation of certain categories
and that our speed-to-market falls short of benchmark.
Informed by internal and external feedback and a review of global
innovation best practice, we are looking to address these challenges by
creating a more streamlined two-track innovation process that balances
the benefits of agility with more traditional linear product development.
This approach ensures continued renovation of our core products, while
encouraging experimentation with high-risk, high-reward innovations that
are more appropriate in the context of rapidly emerging consumer
preferences where speed-to-market is more important and where there
are potential benefits in “failing forward”.
This year, we completed 31 innovation projects, achieving a R1,4 billion in
sales and an innovation rate of 3,7%, with a priority focus in our targeted
growth areas: affordability, health and nutrition, and snackification. These
include successful launches in Crosse & Blackwell’s Kasi Magic sauces,
Energade Zero and Boost, Jungle Crunchalots Fillows, Albany Wraps and
Jungle Oats functional beverages.
In March this year, we launched a new state-of-the-art multi-purpose
centre dedicated to nurturing a culture of innovation in the company.
The Sensorium, based at our head office in Bryanston, features an
analytical laboratory, a functional pantry, a development kitchen and a
44
sensory room. By providing a modern workspace facility for
product demonstrations and training sessions, it offers an
opportunity to inspire employees and encourage collaboration.
This development forms part of a larger R42 million multi-year
investment aimed at enhancing our R&D facilities, developing
category pilot plants at our manufacturing sites, and deepening
our technical innovation skills. We have recently completed
upgrades to category pilot plants at our Home and Personal
Care and our Baby manufacturing facilities, and we plan to
upgrade a further three pilot plants and two new pilot plants
over the next two years.
We have continued to work closely with select universities,
science and technology laboratories, and expert third-party
suppliers to address technology gaps and improve speed-to-
market. We have also been working with the Tiger Venture Capital
Fund to supplement our own internal pipeline by accessing
external innovators and ideas that may not yet be scalable or easy
for us to build internally. Post-year end, the fund concluded an
investment in Rush Nutrition, a female-founded naked snacks and
functional beverages company from the Western Cape. Rush
Nutrition was established in 2013 and produces healthy and
nutritious snack bars, snack balls and beverages for children and
adults, which are made from botanical ingredients, are free from
refined sugars, soy, gluten, dyes and preservatives. We remain
committed to executing on the strong pipeline of both food and
technology-enabled opportunities to future-proof our business.
Optimising our product portfolio
We continually evaluate and optimise our product portfolio,
using a structured approach to identify those product
categories with high attractiveness and competitive strength
that should be invested in and grown, those that present new
opportunities for our portfolio of the future, and those to be
targeted for possible exit.
In determining where Tiger Brands is best positioned to
compete, we have analysed the current market dynamics in
the South African FMCG sector, identifying specific categories
that are the largest and/or fastest-growing in terms of volume
and/or value. Informed by this analysis, we continue to see
potential for further growth in groceries, baked goods,
beverages, wheat flour, snacks and treats, breakfast cereals,
rice and pasta, and baby food (jars and pouches). In these
categories, we are investing in product and process innovation,
driving further process efficiencies, and/or expanding our
production capacity. We have also identified potential
opportunities for entry in adjacent categories where we see
valuable synergies, a growing market, and/or higher margin
potential.
In rationalising our portfolio, we are reviewing the status of the
following business units over the medium term: maize meal,
sorghum-based beverages and breakfast, personal care, and
baby wellbeing.
Winning at the point of purchase
We have continued to make progress this year in our ambition
to secure growth and win at the point of purchase by delivering
against most of our success metrics in each of our three
strategic focus areas:
› Growing in new channels: through improved channel
segmentation and tailored channel strategies, expanding
our route-to-market for general trade and forecourts, and
growing our e-commerce presence
› Optimisation: ensuring best-practice revenue
management and strengthening our position
in neighbouring countries
› Execution: enhancing our customer engagement and
ensuring precision execution
These strategic commitments are underpinned by our activities
aimed at strengthening the capabilities of our sales force and
leveraging digital transformation opportunities to optimise and
automate our sales processes, improve customer data
accuracy, and equip our sales team with the necessary digital
tools and training to sell more effectively to retailers.
Given the growing importance and contribution of the informal
market (general trade) to the total South African FMCG
sector – contributing roughly 26% of the total R716 billion
FMCG market, and with faster growth rates than the traditional
retail market – we are pursuing various initiatives to expand our
reach in general trade. Through our aggressive roll-out plan,
we reached 50 000 general trade stores this financial year, and
we aim to expand our presence to 130 000 stores over the
next five years, as well as establishing 2 000 Perfect Outlets
supported by innovative point-of-sale marketing execution.
We have prioritised the execution of more in-depth shopper-
centric segmentation of trade channels to ensure more
effective proposition development in a very saturated market.
Deepening our insight and understanding of broad shopper
profiles is informing our shopper activation and store execution
plans, and contributing to more effective shopper messaging
and campaigns, targeted pricing and promotions, and
appropriate price and pack architecture.
We have continued to drive various initiatives to raise our online
presence and become the preferred supplier to prioritised
digital commerce partners. We have made further progress
this year in our various targeted areas:
› Increasing sales in Bricks and Clicks, by ensuring closer
strategic alignment and delivering focused category/brand
activity with leading grocery e-tailers (such as Checkers
Sixty60 and Pick n Pay ASAP), while accelerating our
growth in growing e-tailers (such as Spar, Makro and
Dischem)
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Building a growth pipeline continued
› Growing our online presence and conversion in Pure Play
through our joint strategic initiatives with leading platforms
such as Takealot and Yebo Fresh, growing our presence
in smaller, fast-growing customers, and being proactive
ahead of the anticipated arrival of Amazon in the country
› Scaling up our pilot online employee shop (Tiger Trolley)
while on-boarding non-competing value offerings onto the
platform
› Strengthening our social e-commerce strategy, ensuring
that every brand campaign now includes a deep linkage
directly to our e-commerce platform
We have continued to leverage our revenue management
practices to improve profitability, prioritising five specific levers
to ensure that our product prices, placement and availability
are properly aligned within each customer segment based on
an informed understanding of customers’ perception of
product value, as well as a detailed review of price indexing,
discount curves and brand health. Our recently implemented
decision-making tool, that connects disparate data sets to
enable detailed analysis at an SKU and customer level, is
delivering results in improving the identification of profitable
revenue growth opportunities, enabling us to eliminate margin
dilution in various product categories and to target volume
growth in more profitable customer groups. We have also seen
the benefits this year of our recently revised trading terms that
have clearer performance metrics aimed at incentivising
strong customer performance aligned with our strategic
growth drivers.
This year, we ran an independent trade perceptions survey,
benchmarking how Tiger Brands is perceived in terms of the
quality of our customer engagement against 26 leading
manufacturers in the FMCG sector. The survey was conducted
across eight of our most influential customers – with a mix of
directors, senior managers, buyers and operational staff – and
assessed our comparative performance across a range of key
focus areas. We were rated fifth among the 26 manufacturers,
with useful feedback on our perceived strengths and
challenges. To address the identified challenges, we have been
working on various initiatives to improve customers’ perception
of their relationship with Tiger Brands. We are intensifying our
dedicated customer forums across all our customers to
enhance our relationships, and we are continuing to work with
them to ensure greater alignment between our category
strategies and customers’ strategies to find mutually beneficial
win-win opportunities. To speed up reaction time, we have
strengthened the delegation of authority to customer
management teams, and we aim to ensure that every action
or decision requested will be attended to within 24 hours.
We remain committed to fair and competitive pricing, and
to ensuring that our pricing policy is clearly communicated
and strictly enforced.
46
Expanding our footprint in the booming
South African informal sector
The informal sector is a significant part of the South African economy, contributing at least 6% to GDP and accounting for
one-third of local jobs in the country1. Informal independent traders, such as spaza shops and superettes, contribute
roughly 26% of the total R716 billion FMCG market in the country, with more than 70% of South Africa’s households
purchasing from the informal trade and with faster growth rates than the modern market2.
To capture the significant growth opportunities in the informal sector, we are expanding our presence in the sector by
implementing robust route-to-market support and solutions for our general trade customers. We expanded our reach to
more than 50 000 outlets this year, and we aim to further expand our presence in 130 000 general trade stores over the
next five years. We are working with our customers to create Perfect Outlets in the general trade, investing in point-of-sale
marketing execution across the Tiger Brands basket and in branded coolers to improve the cold availability of Tiger Brands’
ready-to-drink beverages. Our goal is to establish 2 000 Perfect Outlets over the next five years. Some of the key tactical
initiatives we have implemented include:
› Providing a mobile cashless payment and order platform solution, facilitating delivery of stock from a midi-wholesaler
to a spaza store or supermarket within 48 hours, and dramatically reducing the risks for customers associated with
handling cash
› Using data and shopper insights to ensure optimal product ranges, pack sizes and product bundles
› Deepening brand awareness among consumers in the informal sector by investing in township marketing activations;
this included branding select general trade stores and community walls with mural stories around some of Tiger
Brands’ most recognised heritage and category brands
Through our route-to-market strategy for general trade, together with our partners, we have created an estimated 272 local
jobs in communities, with 198 local community jobs specifically for women.
1
2
Stats SA, 2021
Trade Intelligence, 2022
Driving growth in Africa
With a rapidly growing and increasingly urbanised population,
Africa offers huge opportunities for volume and revenue growth
as we seek to nourish and nurture consumers across our
target markets. We believe that we are now well-positioned to
grow at an accelerated pace, building on our established
presence across the continent, our strong manufacturing
assets and brands, and a more stabilised base.
This year, we delivered solid performance across our markets,
with improved margins driven by robust demand off a low
base, reflecting improved in-market execution and optimal
pricing. Our Chococam operation in Cameroon and our
Mozambique business have both continued to be our
strongest markets, despite a challenging operating
environment. We have also seen a pleasing turnaround in
performance in our exports businesses off the back of
improved operational efficiencies.
Building on this strengthened base, we are focusing on
three strategy and growth clusters:
› Driving deeper penetration into our existing Southern
Africa markets (Zimbabwe, Zambia, Mozambique),
building our brands within these countries to capture
more than fair share of the market, aided where
necessary by infrastructure investments
› Expanding our reach and presence in our other existing
trading areas (with a priority focus on Kenya, Nigeria,
Angola and the DRC) by sustaining volume and
profitability growth, diversifying our sales volume mix,
and investing in strengthening our leadership teams
and core competencies, supported by improvements
in factory performance, targeted capex deployment,
and a step-up in our commercialisation of innovation.
47
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Meeting the needs
of consumers
Informed by a thorough analysis of global, regional and local trends specific to
the FMCG and retail sectors, we have prioritised three growth platforms aimed
at driving broader consumer and shopper relevance and increasing market
success: we will be delivering market-leading solutions for the value-seeking
consumer, driving education and accessibility of our portfolio to meet the
nutritional needs of consumers, and working to own all the relevant demand
spaces for consumers in the snackification segment.
Driving affordability to meet the needs of value-seeking
consumers
Our ambition is to become the leading choice for value-seeking
consumers by enhancing the affordability and accessibility of existing and
new product offerings through appropriate pack, price and channel
architecture, harnessing effective distribution channels, and realising
opportunities for product and packaging innovation, supported by
value-led marketing and consumer engagement campaigns, as well
as our broader cost reduction initiatives.
We have made further progress this year in these ambitions, delivering
value-for-money innovations in selected categories to ensure more
affordable price points, including new value packs in beverages as well
as new value offerings in groceries and beverages. We have identified
a pipeline of value-led innovations, including new value packs in snacks
and treats, and value offerings in groceries. These innovations will
be aided by our continuing activities to enhance efficiency and reduce
costs, as well as by delivering on our goals to compete more effectively
in the deep discounter channel.
Informed by renewed insight and analysis, we have refreshed our strategy
to best defend our product offerings against the increasing threat
of private label by further investing in our brands, building our innovation
capabilities, protecting our IP, and offering consumers choice through our
premium and value offerings. We will only manufacture private-label
products in selected categories where we see clear, long-term strategic
benefit, informed by a thorough cost-benefit assessment.
Performance
summary 2023
Positive developments
› 7% reduction in consumer complaints,
reflecting impact of our strengthened focus
on quality
› New healthier product lines in the
Beverages and Oat-based breakfast
(Jungle) categories and innovation in the
personal care category
› Material gains in volume market share in
certain categories
› Six external marketing awards including:
the MMA Smarties Awards (for effective
modern marketing in South Africa), and the
Sunday Times GenNext 2023 Awards
› Silver Loerie Award for Fatti’s & Moni’s
“Always Eat’alian” TV commercial
Opportunities for
improvement
› Strengthening the speed-to-market and
commercialisation of innovation activities
› Further improving our equity score in some
of our Billion Rand Brands
48
Democratising health and nutrition
As Africa’s largest food company, our health and nutrition
agenda is integral to our corporate purpose of nourishing and
nurturing more lives every day. In addition to the broader
socio-economic and moral imperative of driving positive
change in health and nutrition, we believe that there are
valuable opportunities for business growth in leading this
agenda in our markets.
In the lower-income market, we aim to democratise nutrition
by driving awareness, accessibility and affordability of our
healthy food portfolio. We are amplifying our nutrition
communication to drive category leadership by leveraging
on our Eat Well Live Well labelling, and we are making
healthier products more accessible through increased
availability in general trade. To close nutrient gaps, we enrich
many of our affordable nutrition food offerings with nutrients
that are often lacking in the South African diet – such
as Vitamin A, iron, zinc and protein – ensuring that we strike
the right balance between taste and enhanced nutritional
value. In the higher-income market, we are innovating across
categories to unlock “superfoods” as a snacking option.
This year, we launched new healthy product lines in the
Oat-based breakfast offerings (Jungle), Pulses and Beverages
categories, including Jungle Oats functional beverages,
a lower-calorie Energade drink, and new breakfast offerings.
We have also continued the roll-out of clear and simple
consumer-relevant health claims on various brands. Through
our renovation and innovation efforts, we have targeted that
by 2030, 75% of our food basket will meet our EWLW
nutritional standards for healthier product categories
“improved for you” and “good for you”.
Responding to the snackification trend
Recent research confirms that snacking is continuing to gain
momentum in South Africa, with more than 70% of South
Africans estimated to be snacking on a daily basis across all
consumer age groups. We aim to capitalise on this growing
trend by owning relevant demand spaces for consumers in all
key snacking categories, including liquification, nano-meals,
“crunch time” and “sweet pleasures”.
We are continuing to drive innovation to capitalise on this
trend with recent product innovations including ready-to-eat
cereal snacks and new offerings in confectionery. In launching
new products, we are spending equal effort to develop robust
pipelines to enter adjacent categories aligned with our core
and emerging capabilities.
Investing in consumer
care and after-sales
Recognising that an effective consumer care and after-
sales service provides a pivotal source of competitive
differentiation and consumer retention, we pride ourselves
in ensuring that consumer complaints are addressed in a
timely and efficient manner. Over the years, the nature of
consumer complaints has become more complex, and
consumer needs and expectations have changed. In
response to these changes and a recent review of our
consumer contact centre, we have introduced various
changes, including increasing the contact centre’s
operating hours from 08:00 to 22:00 Monday to Sunday,
resulting in a marked reduction in consumer waiting time,
especially over weekends. As a result of enhanced
interdepartmental collaboration between the consumer
contact centre and Tiger Brands quality teams, product
complaints have decreased by 7% year-on-year.
Tiger Brands continues to accelerate innovation,
commercialisation and execution of its growth platforms
with the launch of its ready-to-drink (RTD) Jungle Oat
Drink range, a first of its kind in the local market.
The Jungle Oats RTD range also meets the growing need among
consumers for foods that are convenient and offer functional
benefits such as heart and digestive wellness. A recent study
by consumer research organisations, Kantar and Mintel, indicates
that more than half of consumers would like their diet to help
maintain health and wellbeing including brain function and maintain
immunity.
49
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Optimising our
supply chain
We have maintained a particular focus this year on further strengthening our
product quality and food safety practices, stabilising operational performance
in our supply chain, and implementing clear processes to boost productivity,
efficiencies and workplace safety. In addition to upgrading some of our
factories and investing in renewable energy, we have continued to seek
opportunities to deliver value from our procurement and logistics activities.
Developing world-class manufacturing facilities
Our ability to deliver long-term value for our shareholders and other
stakeholders is dependent on the quality of our manufacturing operations.
Through our capex programme and our operations support strategy,
we are striving to build agile, fit-for-purpose operations that deliver
continuous improvement in productivity as efficiently and safely
as possible, ensuring product quality and enhanced environmental
performance. We continue to place a particular priority on progressing
manufacturing excellence custom and practice (MECP) across our
operations, focusing our activities initially on 10 priority sites with the
greatest need for improvement. It is pleasing to report that we have
achieved a 22% improvement in overall equipment effectiveness (OEE)
across these priority sites over the past three years, with Tiger Brands
now inside the best-in-class definition area for OEE. In addition, over the
same period, we have achieved R247 million in savings through material
usage variance (MUV).
Our total capital expenditure this year amounted to R1,2 billion, with
investments to expand and optimise our existing capacity, upgrade
infrastructure and replace ageing equipment, realise innovation
opportunities, improve our energy and water security, and ensure
regulatory compliance. Specific projects included relocating and
upgrading our peanut butter plants, investing in automation in Home
and Personal Care, and upgrading the aerosol canning line.
During the year, we successfully completed commissioning of solar power
at four of our sites and are looking to roll out similar initiatives at the
balance of our operations. This forms an important step towards our goal
of sourcing 65% of our manufacturing electricity requirements from
renewable energy by 2030, and ensuring greater energy independence
from the Eskom grid. Our investment in plant and equipment is supported
by investment in safety performance, competency-based training, talent
50
Performance
summary 2023
Positive developments
› Achieved R247 million in savings through
material usage variance (MUV) over past
three years
› 3,2% year-on-year improvement in overall
equipment effectiveness (OEE)
› R1,2 billion in approved Capex projects,
managed within time and on-budget
› Significant improvements in our food
quality performance and our occupational
safety performance
› Successful commissioning of four rooftop
solar systems, strengthening energy
security and reducing GHG emissions
Opportunities for
improvement
› Embedding ESG considerations more
thoroughly in our raw material sourcing
practices
› Realising productivity improvements that
match or exceed our OEE improvements
attraction and retention, and building a skills pipeline through
management trainees and apprentices.
We have incorporated our management of occupational safety,
security, health and the environment (SSHE) into our MECP
management framework, benchmarking our maturity level
against industry best-practice standards. As part of our
commitment to safety, we have tied safety performance
to remuneration incentives at senior management levels,
contributing 10% to the variable performance reward under
our short-term incentive (STI) scheme. At a group level, our
emphasis on behavioural safety has resulted in a marked
improvement in our overall safety performance. Our lost-time
injury frequency rate (LTIFR) decreased from 0,45 in 2022
to 0,25. Despite these improvements, regrettably there was
one employee fatality and two serious injuries. The fatality
occurred at an off-site warehouse for our Chococam facility
due to unsafe stacking practices; stacking operations at this
warehouse were immediately halted until recommendations
from an incident investigation are fully implemented.
Further
details on our occupational health and safety performance and
management activities are provided in our sustainability report.
Embedding a product quality approach
We made good progress this year in embedding
an integrated food safety and quality system, in which robust
operating processes are supported by well-trained people
supported by a culture of quality excellence. We have
established measurable product safety and quality objectives
across all our operations and at group level, and we monitor
and report on performance against these objectives and
targets through a quality scorecard, implemented across all
sites and categories.
This year, we restructured the resourcing of our Quality and
Food Safety Centre of Excellence, introducing clear oversight
lines and distinct roles and responsibilities across six priority
focus areas, with technical personnel appointed in each
of these areas. To cultivate a culture of quality excellence,
we have been piloting a culture survey index that seeks
to identify the strengths, weaknesses and opportunities
related to enhancing our food safety and quality culture and
performance throughout the organisation. We also approved
funding this year to digitise our quality and food safety
management system, which will further strengthen our
management and reporting on food safety and quality.
Following these initiatives, we have seen significant
improvements in our overall quality performance, with a 7%
reduction in consumer complaints. Following two product
recalls over the past two years, it is pleasing to report that
there were no product recalls in 2023, as well as no notices
from government authorities for any regulatory food safety
violations.
All our food manufacturing operations comply with the Global
Food Safety System Certification 22000 (FSSC 22000)
standard recognised by the Global Food Safety Initiative
(GFSI), with each operation conducting quarterly GFSI
self-assessments. As part of our certification commitments,
we conduct regular internal audits and risk assessments
at our manufacturing facilities, targeting specific opportunities
to mitigate or eliminate identified risks. This year, with
assistance from external experts, we initiated a new audit
process for certain food categories in alignment with the
American Institute of Baking (AIB) Standard, a stringent and
credible audit standard that emphasises the production
environment and operational aspects, complementing our
FSSC 2220 certification audit processes.
All our suppliers and third-party manufacturers are required
to possess food safety certification, ideally recognised
by the GFSI. As a minimum, we conditionally accept Hazard
Analysis and Critical Control Points (HACCP) certification.
This year, all our third-party logistics warehouses were
certified against the BRC Global Standard for warehousing
and distribution. We also undertook onsite audits
of a prioritised selection of suppliers and third-party
manufacturers, using our recently introduced supplier quality
assurance (SQA) protocol.
Driving value through centralised procurement
In response to the lingering supply chain impacts of the
COVID-19 pandemic, an increasingly challenging geopolitical
landscape, and heightened supply chain disruptions from
extreme weather events, our procurement team’s priorities
have shifted significantly over the past two years towards
mitigating supplier risk, ensuring seamless supply chain
continuity, and managing inflationary pressures.
While there has been a softening recently in the global price
of some of our key commodities, this price softening has not
been sufficiently reflected in our South African market due
to the depreciation of the rand and the cost impact
of sustained loadshedding. In addition, a firming in fertiliser
pricing has driven higher production costs for critical
commodities, such as sugar, beans and tomatoes. Extreme
weather events and limited access to critical raw materials
have further strained the supply fundamentals of key
commodities – including cocoa, oranges, gelatine, eggs,
groundnuts and beans – exacerbating an already constrained
supply chain feeling the impacts of China’s COVID-19-related
lockdown that was only lifted earlier in this financial year.
51
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Optimising our supply chain continued
This year, we have been executing on our ambition
to become a leading procurement function in South Africa
and to bring us in line with global procurement best practice.
We have begun implementing our recently revised
procurement strategy, focusing on three key pillars: building
value-enabling capabilities, becoming functionally excellent
in our chosen capabilities, and supporting the team and
organisation with leading digital technologies. These changes
will deliver an estimated R500 million in productivity gains
over three years, enhancing our central procurement function
through increased access to spend, capability building, digital
enablement, and changes in our operating model.
We have made good progress this year with our digital
transformation process, starting work on digitising source-to-
contract activities, as well as our supplier management,
spend analysis and risk management functions, all of which
will go live before the end of this calendar year. Digitising
and automating our operational and administrative
activities will streamline our policies and processes,
contributing to increased business efficiencies, improved
compliance and spend visibility, and enhanced cost-savings.
We remain committed to making further investments in talent,
with advanced training and capacity building sessions already
in progress.
As we refine our supply chains, we are continuously striving
to ensure more sustainable sourcing practices. Over the last
two years, our procurement team has successfully
implemented new procurement and supplier management
policies and revised our existing policies on B-BBEE and
ethical sourcing.
Transforming our logistics activities
In 2021, we launched an ambitious logistics transformation
programme aimed at realising significant cost-savings and
improving overall efficiencies. The programme covers
12 broad focus areas and several individual projects with the
goal of developing a function that is self-sufficient and agile,
where we have full ownership of the intellectual property and
data, as well as improved overall visibility and management
of the logistics process. Since launching the programme
in 2021, we have secured R210 million in savings, and
anticipate reaching R260 million by the end of the next
financial year.
Through this programme, we have implemented a new
warehouse management system at two of our warehouses,
which has already delivered some significant benefits,
reducing stock-taking time, improving stock accuracy
to 99,9%, improving stock rotation and traceability, and
improving direct delivery efficiencies. We will be rolling this
system out at our other sites next year. We have completed
the re-organisation of our customer support centre, which
delivered R2,5 million in savings, and we have introduced
a pallet weight optimisation initiative at some of our facilities,
yielding improvements in transport cost efficiencies. We have
also introduced a freight desk control tower and on-boarded
a specialised team. This has provided end-to-end visibility
of both import and export flows, resulting in improved stock
management and enabling leveraging of economies of scale
to obtain best freight rates and overall improved freight
management. The annual freight rate benefits are estimated
to be around R12 million. We are currently reviewing the
possibility of converting our forklifts from gas/diesel to lithium
ion batteries, which we believe will deliver significant
environmental and cost-savings benefits.
With almost 40% market share and one of Tiger Brands’ Billion Rand Brands, Fatti’s and Moni’s has been a firm
favourite in the pasta category. This year, the Fatti’s and Moni’s Always Eat’alian TV campaign was recognised
with a silver Loerie award, the highest accolade for creativity and innovation.
Source: Circana
52
Being obsessed
about cost-savings
and efficiency
This year, we delivered R525 million in savings, reflecting our drive in instilling a
culture of cost-savings.
Performance
summary 2023
Positive developments
› R525 million in cost-savings realised
this year exceeding the guidance of
R460 million
› Reduced SKUs across the Consumer
Brands segment by 16% and across
Grains by 12% over the last two years
› Significant progress in driving execution of
our digital transformation strategy
Opportunities for
improvement
› Continue to deepen our cost-efficiency
culture change
› Improve execution in realising identified
efficiencies in procurement, process
automation, product reformulation, SKU
rationalisation, and our manufacturing,
distribution and logistics activities
Unlocking costs and cash
We have been running a strong cost-savings culture-change initiative
across the company since 2020. The aim of this initiative has been
to ensure a more systemic group-wide approach to driving efficiencies
across our activities, and to enhance the quality and quantity of cost-
savings projects that are being tracked.
To deliver on this ambition, we changed the governance structure,
introduced clear process steps from identification to realisation of savings,
improved internal transparency, and strengthened our accountability
measures to ensure appropriate ownership of expenses. We have been
further strengthening our central revenue management capability within
each of our business units, delivering positive results in most parts of the
business, and we have seen positive results from our revised trading
terms that provide stronger pay-for-performance incentives. We have also
continued to deliver cost-savings and reduce complexity through SKU
rationalisation.
Although we have been successful over the past three years in meeting
or beating our continuous improvement targets – delivering R525 million
in savings this year – we recognise that we still have work to do
to become more cost-competitive. This is particularly important in a highly
constrained economic environment in which consumers are trading down,
and where margins remain under pressure. To restore our cost leadership
and improve operating margins, we have identified further potential
savings in raw materials procurement and packaging design, improved
manufacturing efficiencies and process automation, product reformulation
and SKU rationalisation, while further optimising our distribution and
logistics activities.
Delivering digital transformation
Having access to integrated IT solutions is an increasingly important
source of competitive advantage, and fundamental to realising our vision
of developing an effective, best-in-class supply chain. Last year, the board
approved a new digital strategy that provides a comprehensive framework
and roadmap to leverage digital technologies to improve productivity,
drive growth, and enhance the experience of our customers, consumers,
service partners and employees.
53
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Being obsessed about cost-savings and efficiency continued
Our primary focus this year has been ensuring effective
execution of the year’s identified digitisation initiatives in three
priority areas:
› Food safety and quality: This three-year programme is on
schedule to automate all aspects of the food safety and
quality management process, which includes tracking
non-compliances of specific suppliers, and managing the
monitoring and reporting of internal quality management
› Digitising the freight desk for both import and export
goods: In the past, import and export function was
managed manually and independently within different
categories, relying heavily on external freight-forwarding
and clearing agents. Through this freight desk project,
we have been expanding the scope of our existing GTS
application to encompass the import process. Launched
in June 2023, the initiative has already delivered tangible
commercial advantages
› Uplifting our procurement capabilities: This 30-month
initiative will enhance our centrally led procurement
activities by implementing a technology system
encompassing the full spectrum of our procurement
capabilities, including sourcing, e-purchasing, contract
management, supplier management and spend analytics
We have completed our prioritisation process for next year
and have targeted various specific programmes identified for
in-depth investigation. These span a number of operational
and functional disciplines including HR, order and returns
management as well as customer and marketing analytics.
During the year, we have also deepened the operational
proficiency of our cyber risk management processes.
Sensory testing in the quality laboratory at Tiger Brands’ Beverages manufacturing plant in Roodekop.
54
Igniting our people
To deliver on our growth ambitions, we need to be able to attract, retain
and develop future-fit employees who are consumer-obsessed, excellent
executors, collaborative, agile, innovative and resilient, centred by our purpose,
values and culture of winning behaviour.
In the context of increased competition for skills and talent – and given recent challenges in terms of high rates of attrition
and internal rotation – we have placed a strengthened focus on ensuring effective execution of our people strategy.
Through the three strategic pillars of talent, leadership and great place to work, we seek to attract, retain and develop
a diverse talent base, deepen our leadership capabilities, and provide an engaging work environment that inspires
execution excellence, accelerates innovation, and creates an agile culture that is highly focused on the consumer.
Talent
We have laid a strong foundation in talent acquisition and management
by identifying and developing the essential skills that align with our
strategic goals and priorities. This has involved a concentrated effort
on internal growth and promotion, accelerating the development of core
and future-fit capabilities across relevant internal disciplines. This year,
in response to more challenging market dynamics, we sharpened our
focus on talent acquisition, accelerated the development of a diverse
talent pipeline for critical skills, and continued to build core capabilities
at all levels across the company. By strengthening our targeted talent
management processes internally, we have improved our ability
to transition talent across categories and functions, enhancing our
capacity for internal talent growth.
The focus on internal placements, coupled with a skills shortage in critical
technical areas, has depleted our middle to senior leadership talent
pipeline, and created readiness gaps in succession planning. To address
these gaps, we have established a talent acquisition hub to better
leverage talent insights, prioritising the filling of critical vacancies and
building robust talent pools.
Over the last three years, we have enhanced our ability to grow our own
talent and improved our succession bench strength. We have also made
substantial progress in our Rest of Africa talent strategy, filling essential
positions, and implementing graduate development, coaching and
mentoring to prepare for in-market placements. In 2023, we made a total
of 409 new hires, filling 32% of our leadership vacancies through internal
career moves and promotions. Tiger Brands was once again recognised
as one of South Africa’s top employers.
Performance
summary 2023
Positive developments
› 32% leadership vacancies filled internally
› 64% African, Coloured, and Indian (ACI)
representation in top-tier management
› Substantial progress in delivering on our
Rest of Africa talent strategy
› Accelerated implementation of our targeted
talent development programmes
› Improved participation rate and
engagement score in our annual employee
engagement process
› Once again recognised as one of South
Africa’s top employers
Opportunities for
improvement
› Strengthening stability and tenure
particularly at middle-management level
› Improving internal and external talent
mapping and pipeline management
› Streamlining decision-making and reporting
lines through a revised operating model
› Strengthening performance-based
incentives, and addressing employee
work-life balance needs
55
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Our 12 to 18-month WINGS accelerated leadership
development programme, launched in 2022, aims to bolster
succession planning by fast-tracking the development
of experienced talent by rotating them into various roles
across the business and providing mentorship and coaching
from senior leaders to support their learning. Through this
programme we have successfully promoted two employees
to senior leadership roles in the company in the last year.
In 2023, we introduced the Re-imagine Tiger leadership
development programme in partnership with GIBS Business
School, in which participants collaboratively develop
innovative solutions for key business ventures aimed
at accelerating Tiger Brands’ growth agenda. This year,
163 leaders participated in leadership development
programmes.
Great place to work
We are dedicated to creating a great place to work and
to growing our company culture by continuously enhancing
our employee value proposition and strengthening employee
engagement. Our aspiration is to develop a culture that
is collaborative, innovative, agile and consumer-obsessed
where our people are inspired to execute on strategy with
excellence. Our culture transformation roadmap clearly
defines the aspiration for our culture and identifies the priority
actions for getting there. Ensuring employee partnership
in the culture transformation journey is a fundamental
principle of our approach.
Each year, we conduct our Voice of Tiger (VoT) employee
survey to assess the quality of employees’ experience
at Tiger Brands and their level of engagement in their roles
and at the workplace. The survey results inform the actions
we take to deliver our culture transformation journey. In this
year’s survey, undertaken in November 2022, we achieved
an 85% participation rate, with an overall engagement score
of 70 (up from 66 in the prior year), suggesting a generally
positive work experience among employees, yet with evident
room for improvement. We are acting on this feedback,
engaging with leadership teams and employees to further
embed the desired culture transformation, including through
specific initiatives on strengthening performance-based
incentives, streamlining decision-making and reporting lines,
and addressing employee work-life balance.
Igniting our people continued
Learning and development
Targeted skills development is executed through our learning
academies, which we have recently aligned to our core
capabilities and digitalisation goals. Remote-working
arrangements have enabled us to integrate digital learning
more seamlessly into daily work practices. In 2023,
we accelerated the implementation of our targeted
development programmes to strengthen internal pipelines
and support the growth of our own talent. In 2023,
3 298 employees were trained through our academy core
capability programmes. We invested R93 million in learning
and development across all areas of our business, averaging
R861,68 per full-time employee.
Diversity and inclusion
We continue to make progress on promoting workforce
diversity, increasing African, Coloured, and Indian
(ACI) representation, and promoting gender equity and
the inclusion of people with disabilities. During the year,
we implemented various women development programmes
to support achievement of our gender equity goals. The
Tiger women’s network offers networking and development
opportunities, as well as personalised coaching and mentorship.
Training in unconscious bias, and various other dialogues
supporting a culture respectful of diversity and non-
discrimination continue to form part of our leadership
development and cultural transformation efforts.
In 2023, our workforce was 96% ACI, with a management
level representation of 64% ACI in top-tier management.
Internal leadership placements were 83% ACI, and our
management trainee intake was 100% ACI. Females make
up 31% of our workforce, with 30% in top management
and 46% at senior management. The year’s management
trainee intake was 82% female. Most new hires belonged
to Generation Y, with 97% ACI and 52% female
representation. Our full employment equity profile is reviewed
in more detail in our sustainability report.
Leadership
We work to deepen leadership capabilities across the
organisation through our future-fit leadership development
programmes and targeted rotations, using leadership
assessment tools, mentoring and coaching to further
enhance performance, stimulate innovation and catalyse our
desired culture. We track progress on leadership behaviour
shifts by using a 360° MultiRater feedback platform that helps
foster a growth mindset within our leadership talent pool and
bring our values and behaviours to life.
56
Employee wellbeing
Our employee wellbeing programme, THRIVE, makes
physical, emotional and mental-health support available
to employees and their families. This includes 24-hour
telephonic counselling, and access to professional dieticians,
bio-kineticists, and financial and legal advisors. In line with
our goal of prioritising better work-life balance, we have
embraced hybrid and flexible work arrangements, offering
employees more autonomy in where and when they work.
Remuneration, recognition and reward
We reward our employees to inspire exceptional performance
and attract and retain top talent. We revise our reward
strategy annually to boost performance, align with market
standards, and satisfy the employees and shareholder
expectations. We administer rewards fairly and responsibly,
complying with our remuneration policy, International Labour
Organization (ILO) conventions, and relevant laws. Our
remuneration policy includes an explicit objective to address
unjustifiable pay differentials. Our pay practices mitigate
against unjustifiable pay differences between employees
in the same role and between race and gender groups.
A five-year long, company-wide initiative has succeeded
in significantly narrowing the gap between the lowest paid
groups and the highest paid groups. At every compensation
review opportunity, we consider, report, and address pay
differentials seen through various lenses, including gender
and race.
Our reward framework follows a “total reward” approach,
consisting of guaranteed pay, variable pay, and a range
of market-relevant benefits, as well as professional growth
opportunities that recognise individual and team
performance. Our remuneration strategy is aligned with KPIs
to measure and reward performance against our core
business strategy. Long-term incentives are used to attract,
retain, motivate and reward eligible executives, senior
managers, and key talent to influence the performance of the
group and align their interests with the interests of the
company’s shareholders. This, in turn, aims to incentivise
employees to meet long-term growth and sustainability plans.
Our STI scorecard includes both financial and non-financial
elements, with remuneration incentives indirectly linked
to sustainability performance via weighted measures for
achieving strategic sustainability-related objectives, including
safety, quality, efficiency and carbon emissions. The
incentives are applicable across the group from senior
executives to employees who operate our plants.
We continue to enhance our remuneration strategy and
improve alignment with our strategic key performance
indicators and shareholder interests.
Employee relations
Guided by our employee relations partnership framework,
we seek to foster meaningful collaboration between
management, employees and trade union partners, ensuring
that as a minimum, we adhere to the ILO core conventions
and relevant labour laws. This year, we maintained a high
level of interaction, placing an emphasis on line manager
skills development and implementing targeted interventions
to improve employee engagement and wellbeing, advancing
our collective bargaining strategies, and resolving outstanding
legacy issues. We have made notable progress, particularly
in enhancing employee engagement within our manufacturing
operations, and are gradually seeing an improvement in the
sense of partnership between our employees and line
managers on the shop floor.
As at year end, 51% of our workforce is unionised. Our
collective bargaining has stabilised, with a recent shift toward
standardising processes and moving from annual to multi-
year wage agreements. This year, wage negotiations were
conducted for five of our sites, with three of the five being
settled as two-year deals, and the remaining site settled
as a one-year deal. With the year ahead potentially marked
by tensions surrounding the national election, we will
be looking to further strengthen workforce relationships,
leveraging the impact of the two-year agreements signed last
year, and beginning the next wage negotiation cycle across
most of our sites.
4-in-1
benefits
High
in Energy
Source
of Fibre
Energy
Support
Brain
Support
Quick and Easy
Just add Milk
High in fibre for
digestive balance
High in
Energy
High in V itamins B1
Source o f V itamins
B3 and B6
SouSourrccee oo ff Fibre
Source o f Selenium
Shopper Proposition
A trusted brand that now offers an appealing, nutritious, and an affordable
option to the Flakes segment
Consumer Proposition
Healthier option containing B Vitamins, Vitamins C & E and Zinc which helps
build immunity and sustain energy.
For a more balanced diet and a healthy lifestyle, Jungle offers Bran Flakes
high in fibre for improved digestive wellbeing to help families have a great
start to the day.
Trade Proposition
Increased penetration at a competitive price point and trade margin.
Marketing Support
TVC
Instore Activations
On shelf POS to improve
shopability as well as
communicating new look
and added benefits.
What is in it for the consumer?
Consumers also need breakfast that is nutritious and healthy to help
provide them with essential nutrients and vitamins that are important
to kick--start their metabolism. For a more balanced diet and a healthy
lifestyle, Jungle offers Bran Flakes high in fibre for improved digestive
wellbeing to help families have a great start to the day.
Consumer insights
A healthy start is a good start with breakfast that is not only high in
fibre for digestive wellbeing, but also ensures sustained energy.
Drive awareness on
Instagram & Facebook.
B Vitamin
B1, B3, aanndd B6
B5 contributes to normal mental performance.
57
E-tailer Campaign
Targeted sampling
through e-commerce
channels and drive
promotional activity.
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business
Investing in a
sustainable future
Our sustainable future strategy supports the delivery of our core purpose,
strives to ensure effective management of our relevant environmental, social
and governance (ESG) risks, and reflects our commitment to addressing our
most material environmental and social impacts and to creating broader social,
economic, and environmental value.
The strategy comprises three focus areas: health and
nutrition, enhanced livelihoods and environmental
stewardship. Our commitments under these pillars drive the
pursuit of commercial opportunities in health and nutrition,
the systematic transformation of our supply chain to promote
more inclusive economic development, and the adoption
of environmentally responsible production practices. These
strategic pillars are underpinned by seven critical anchors:
food safety and quality; ethical supply chain practices; safety,
health and environment; responsible marketing; partnerships;
and transparency. These critical anchors represent key
areas of competency and practice that are crucial for
building a strong foundation in responsible business
practice in our sector.
A summary of our performance in these three strategic
focus areas is presented below; a more detailed review
of our sustainability and ESG performance is provided
in the Tiger Brands sustainability report 2023, available
at
www.tigerbrands.com/sustainability/reporting
Health and nutrition
We will enable consumers to improve their health and wellbeing by providing affordable, good nutrition.
2030 targets
Key commitment
Empower good nutrition choices
for 100 million African consumers
annually, through:
› Eat Well Live Well (EWLW)
› Product innovation and renovation
› Branding and messaging
› Feeding schemes and SED
partnerships
› Funding of emerging food trends
through the Tiger Brands Venture
Capital Fund
› Portfolio shifts
75% of our food portfolio to meet
our EWLW nutritional standards
for healthier product categories.
Develop nutritional standards for our
products that meet or exceed globally
recognised nutritional guidelines.
Develop more nutritious and affordable
products, including fortification of new
and existing products.
Leverage our brand and marketing
activities to promote consumer health
and nutrition awareness and inspire
positive behaviour change.
Play a leading role in modern food
labelling practices.
2023 achievements
› Developed criteria for assessing the health category of our
snacking products
› 52% of our food basket meet our EWLW nutritional
standards
› Six healthier products launched, including: four nutrition
products and two affordable nutrition products
› Micronutrient enrichment across >30% of our portfolio
› R75 million spent on marketing health and nutrition
products
› KOO healthy brand refresh
› Reached five million consumers through the EWLW
programme
› Launched Family Food Matters case study report
› 100% adherence to EWLW and Be-Nutrient-Wise
labelling standards
› Revised Tiger Brands’ position on the imminent FOP
labelling regulations
Enhancing livelihoods
Priority SDGs
2030 targets
Invest in sustainable communities
› 20 community enterprises
Enterprise and supplier
development
› Support 1 000 black enterprises
› Create 4 000 jobs
› ESD fund of R400 million through
partnerships
Preferential procurement
› Prioritise local/regional sourcing
of agricultural raw materials
› 50% of our total local
procurement spend towards
black/black women-owned
suppliers
› 100% of our products ethically
sourced
Employee diversity
› 50% female representation
› 80% African, Coloured and Indian
(ACI) representation across all
management levels
Key commitment
2023 achievements
Annually contribute at least 1,5%
of net profit after tax towards SED
activities that promote sustainable
thriving communities.
Support new black/black women-
owned enterprises and create
sustainable livelihood
opportunities by 2030.
50% of our total local procurement
spend will be towards black/black
women-owned suppliers by 2030.
› R70,8 million SED spend
› 228 648 food hampers distributed in total
› 300+ schools reached through EduPlant
› 5 209 food hampers distributed to students
across 14 campuses through Plates4Days
› 13 845 reached monthly through Family Food
and Alleviating Child Hunger Initiatives
› R104 million Dipuno ESD Fund
› 54,4 million invested in agri-development since
Dipuno Fund launch
› Three new agriculture aggregators on-boarded
› Five black aggregators supported to cultivate
small white beans, white maize and wheat
› Nine farmers supported under the aggregator
model
› 137 small-scale farming jobs created, including
44 permanent and 93 seasonal
› Winner of Small Business Development Service
Provider of the Year award at the Inaugural
National Presidential SMME Awards 2022
› 90% of total procurement spend with local
suppliers (municipalities, public sector
companies and includes international suppliers
with a local presence)
› 53% of local procurement spend with B-BBEE-
verified suppliers
› 17% of total local procurement spend with black
and black women-owned suppliers
› R25 billion with local suppliers
› R18,3 billion total spend with B-BBEE-verified
suppliers
› R6,9 billion with suppliers that qualify as
black-owned
› R6,0 billion with suppliers that qualify as black
women-owned
To attract, source and develop
a skilled and diverse workforce,
and create an inclusive and
collaborative work environment
where our people can thrive, grow
and innovate.
› 31% female workforce
› 46% female senior management
› 30% female top management
› 80% ACI across all management levels
› 57,6% ACI in senior management
› 63,6% ACI at top management
› 0,6% people with disabilities
58
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Tiger Brands Limited Integrated annual report 2023
Investing in a sustainable future continued
Environment
We will significantly reduce our environmental impact through innovative solutions.
Key commitment
2023 achievements
Optimise our energy usage through
integrated and environmentally friendly
energy options.
› 0,6% year-on-year reduction in absolute total GHG
emissions
› 0,9% year-on-year reduction in GHG emissions
Optimise our water consumption
through the evaluation of water reuse
opportunities and responsible effluent
discharges.
Develop innovative product offerings
that are “good for you” and “kind
to the environment”.
Provide innovative packaging solutions
that minimise environmental impact.
intensity
› 0,3% year-on-year reduction in absolute energy use
› 0,9% year-on-year reduction in electrical energy
intensity
› 4% year-on-year reduction in absolute water use
› 1,9% reduction in water-use intensity
› 32,1% year-on-year reduction in waste to landfill
intensity
› Secured waste management contracts for all sites
› Baseline food waste assessment completed, with
target set for 20% reduction by 2027
› 70% of plastic packaging is recyclable
› Developed tools for extended producer responsibility
(EPR) compliance
Implement closed-loop/circular
economy initiatives that stimulate
sustainable economic opportunities.
› Continued exploring value-adding circular economy
projects for recycled plastic waste
› Continued to work through Consumer Goods Council
Leverage our brand and marketing
activities to inspire positive behaviour
change in consumers.
of South Africa (CGCSA) to develop a voluntary
industry food-waste reduction framework for
South Africa
2030 targets
Sustainable manufacturing
facilities
Energy
› 65% of all electrical energy
at manufacturing sites from
sustainable energy solutions
› Reduce energy intensity (kWh/
tonne) across all sites by 30%
Water
› Reduce water intensity
(kℓ/tonne) across all sites by 30%
› Achieve a water-intensity figure
of 1,12kℓ/tonne
GHG emissions
› Reduce carbon emissions by 45%
for scope 1 and 2 emissions
› Work towards achieving net zero
carbon emissions by 2050
Waste
› Zero waste to landfill at all sites
› 50% reduction in production
of food waste from a 2022
baseline
Sustainable packaging solutions
› 100% of plastic packaging
is recyclable/compostable
› All plastic packaging (by volume)
to contain at least 50%
recycled plastic
An Eduplant training session. Eduplant is South Africa’s national school nutrition and food security programme
supported by Tiger Brands.
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www.tigerbrands.comOverviewOur strategyGovernanceOur performanceOur operating contextOur business Chief financial officer’s review
DEEPA SITA: Chief financial officer
Tiger Brands’ results for the 12 months ended 30 September 2023 reflect the
challenging trading environment marked by high food inflation, cost-conscious
consumers continuing to trade out of premium products, rand depreciation and
unreliable electricity supply.
half, resulting in the overall gross margin declining to 27,7% from the 30,3%
reported in the prior year. Group operating income was impacted by non-recurring
items related to insurance proceeds of R137 million (2022: R190 million) and
retrenchment costs in the current year of R95 million (2022: reversal of R8 million).
Group operating income decreased by 9% to R3,1 billion.
Income from associates increased by 46% to R697 million, driven by a good
underlying performance from Carozzi. Earnings from National Foods were
favourably impacted by R120 million due to a change in functional currency from
Zimbabwean dollars (ZWD) to United States dollars (USD) as a consequence
of listing on the Victoria Falls Stock Exchange (VFEX) in January 2022.
Net financing costs for the year amounted to R238 million compared to R75 million
last year. The increase was due to higher interest rates, the impact on opening cash
balances of the R1,5 billion share buy-back, which commenced in June 2022 and
concluded in August 2022, and higher average levels of working capital investment
despite progress being made in managing these levels down in the second half.
The group’s effective tax rate before fair value losses, non-operational items and
income from associates declined slightly to 29,0% from 29,4% last year.
EPS decreased by 2% to 1 725 cents (2022: 1 762 cents). HEPS increased marginally
by 2% to 1 735 cents (2022: 1 702 cents). The variation in EPS when compared to HEPS
is due to the non-recurrence of certain capital profit items accounted for in EPS in FY22,
which were excluded from HEPS.
A mixed operational performance
This year, our strategies in our Exports division paid off, while the Domestic
Business reflected the tough operating environment, with mixed performances
across our local divisions.
In Grains, revenue benefited from price increases across all segments and a strong
volume performance in rice and bread. While bread volumes and market shares
increased in line with the intended strategy, price realisations and profit margins
were negatively impacted by adverse channel mix as volumes in the general trade
declined. The bakery business was also impacted by the significant incremental
cost of loadshedding versus prior year (R69 million in FY23 vs. R18 million in FY22)
and higher conversion costs due to higher wages and utilities. Our sorghum-based
Breakfast and Beverages business delivered a muted performance, impacted
by supply challenges and lower demand. Although our Jungle business delivered
solid profit growth, adverse product mix, higher raw material and distribution costs,
and sub-optimal factory performances in the Rice and Pasta segments adversely
impacted overall profitability.
Despite double-digit inflation across
the portfolio, the impact on group
volumes was minimal. Total revenue
increased by 10% to R37,4 billion,
driven by price inflation of 11%,
favourable foreign exchange gains
of 1%, and marginal overall volume
declines of 2%. Volume growth
in Exports was offset by volume
declines in the Domestic Business,
primarily attributable to Milling and
Baking, Groceries and Baby, as well
as the Deciduous Fruit business due
to the timing of shipments. These
volume declines were partially offset
by good volume growth in Rice,
Beverages, Home and Personal Care,
Tiger Brands Food Service Solutions,
as well as Chococam.
Cost-containment initiatives and
supply chain efficiencies continued
to make a positive contribution to the
results at R525 million, R65 million
higher than the R460 million previously
guided. Despite this, the ongoing
challenges of fully recovering higher
input costs persisted in the second
62
Revenue increased 10% year-on-year to R37,4 billion, driven
largely by price inflation
(R’million)
Total revenue
Cost of sales
Gross profit
Gross profit %
Sales, marketing and distribution expenses
Other operating expenses
Operating income before sundry income
Sundry income
Operating income before impairments and
non-operational items
Operating income %
Impairments and fair value losses
Operating income before non-operational
items
Non-operational items
Profit including non-operational items
Net finance costs
Foreign exchange profit/(loss)
Investment income
Income from associated companies
Profit before taxation
Taxation
Profit for the year
EPS from operations
HEPS from operations
FY23
FY22
37 388
(27 048)
10 340
27,7%
(5 671)
(1 719)
2 950
168
3 118
8,3%
(43)
3 075
33
3 108
(238)
(34)
18
697
3 551
(817)
2 734
1 725
1 735
34 029
(23 713)
10 316
30,3%
(5 257)
(1 847)
3 212
219
3 431
10,0%
(16)
3 415
28
3 443
(75)
46
23
478
3 915
(1 020)
2 895
1 762
1 702
Decline in gross margin attributable
to higher input costs and under-
recoveries
Cost-containment initiatives and
supply chain efficiencies amounted
to R525 million, ahead of
R460 million target
Operating income impacted by:
› Higher conversion costs
› Adverse product mix
› Loadshedding
› Retrenchment costs of R95 million
Higher financing costs driven
by higher average debt levels and
interest rates as well as higher
working capital requirements
Income from associates benefited
from good underlying performance
at Carozzi and change in functional
currency reporting at National Foods
Within Consumer Brands, all segments delivered top-line
growth, with a particularly strong performance from Snacks
and Treats, Beverages and Tiger Brands Food Service
Solutions. Lower profitability is reflective of the ongoing
challenges of fully recovering from higher input costs,
particularly from agricultural inputs, as well as the fact that
certain categories reflected the difficult consumer
environment with absolute category volume contraction.
Home and Personal Care’s performance was driven
by a solid recovery in both segments. Revenue in Personal
Care was up 24%, with higher volumes in skincare brands,
Ingram’s and Skin Clinic. Operating income benefited from
strong volume growth, price increases, and lower inflation
on key ingredients. Home Care’s top-line performance was
supported by a better pest season, while improved factory
efficiencies, cost containment initiatives, and favourable mix
resulted in higher operating income.
Exports and International delivered a pleasing
performance, driven primarily by a step change in the Rest
of Africa business, with Exports reporting a marked
improvement across all key metrics, namely volumes,
revenue and profitability. Exports and International increased
revenue by 14% to R4,9 billion while profits were up 71%
to R601 million, benefiting from improved profitability,
especially within Exports and Deciduous Fruit, as well as an
improvement in the quality of the debtor’s book. The sale
process for Deciduous Fruit (Langeberg & Ashton Foods)
was re-opened earlier in the year, with the final stage
of a due diligence process currently underway. The business
will continue in its current form to allow the process
to be completed.
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Chief financial officer’s review continued
Major contributors to decrease in cash for the period (R’million)
4 264
2 703
247
(1 561)
(1 564)
(808)
(208)
726
(1 144)
Cash
operating
profit
Working
capital
changes
Cash
generated
from
operations
Dividends
received
from
associated
companies
Dividends
paid
Tax
paid
Net
financing
costs
Cash outflow
from
investing
operations
Net
borrowings
1 116
776
(292)
Other
Cash at
beginning
of period
Net cash
closing
balance
Chococam’s operating environment was characterised
by high input costs, unreliable electricity supply and increased
regulation pertaining to imports. Nevertheless, revenue
increased by 30% to R1,4 billion, comprising price inflation
and solid volume growth, driven by a strong performance
from the spreads segment while pricing stability and optimal
packaging solutions resulted in market share gains. Operating
income benefited from sound cost control. The overall
performance was further boosted by rand weakness
on translation.
Further details are provided in the operational review.
Cash flow and capital expenditure
Cash operating profit relative to the prior year was unchanged
at R4,3 billion. The benefit of lower inventory outflows
on working capital was offset by a decline in trade and other
payables, which is in line with the company’s strategy
of securing raw materials, packaging, and ingredients
in response to a volatile and unreliable global and local
inbound supply chain. This resulted in cash generated from
operations increasing marginally to R2,7 billion. Capital
expenditure for the period amounted to R1,2 billion (2022:
R1,0 billion). The group ended the period in a net debt
position of R923 million (2022: net cash R143 million).
Final ordinary dividend
The company declared a final ordinary dividend of 671 cents
per share for the year ended 30 September 2023, in line with
the company’s dividend policy of 1,75x cover based on
HEPS. Together with the interim dividend of 320 cents per
share, this brings the total dividend for the year to 991 cents
per share. Shareholders are referred to the dividend
declaration in the AFS for further details.
approached the National Institute of Communicable Diseases
(NICD) for access to their records, which are vital to a
determination of the action. Tiger Brands is yet to receive
a response from the NICD.
Farewell
The last three years at Tiger Brands have been challenging
as well as rewarding. During my tenure, we have made
significant investments in technology and digital capabilities,
which will help drive operational efficiencies, increase
automation, improve customer and consumer data and
analytics, and drive revenue management initiatives. We have
resourced up in critical functions such as logistics and
procurement, the benefits of which will emerge in the medium
to long term. In addition, we have pursued cost-saving
opportunities with rigour, and laid the foundation that will
benefit the group going forward.
Finally, the year under review marks the successful transition
and on-boarding of Deloitte & Touche as the company’s
newly appointed independent auditors.
I wish to thank Noel, my colleagues on the executive
committee, the audit committee, and the board for their
support and guidance throughout my time at Tiger Brands.
I am particularly grateful to the finance team for their
dedication, unwavering commitment and support. Finally,
thank you to our shareholders for their investment and
meaningful engagement.
Tiger Brands has what is needed to deliver on its full potential
and to restore the business to its rightful position. I wish
Tjaart and the executive team the very best and I will watch
with keen interest from afar.
Class action update
As previously reported, pre-trial preparations by the parties
to get the matter ready for trial are ongoing. As part of the
overall endeavour to expedite the resolution of the matter,
Tiger Brands’ legal team and the plaintiffs’ attorneys jointly
Deepa Sita
Chief financial officer
30 November 2023
64
Operational review
GRAINS
FINANCIAL PERFORMANCE
Revenue
R17 billion
2022: R15,5 billion
10%
Operating income
R838 million
2022: R1,3 billion
34%
Operating margin
4,9%
2022: 8,2%
-330bps
Performance
summary 2023
› Albany gains market share ahead
of the market
› New Albany brand positioning
› Sorghum impacted by a 42% increase
in raw material prices due to reduced
plantings
› Well-executed pricing strategy in Rice
resulted in margin recovery in H2
› Launch of Tastic Rice chips
and cakes
› Introduction of nutrient-enhanced
ready-to-drink Jungle Oats functional
drink
Revenue by sub-segment
● 53% (2022: 53%)
Millbake
● 5%
(2022: 6%)
Breakfast (Jungle)
Sorghum-based products ● 6%
(2022: 6%)
● 9%
(2022: 9%)
Maize
● 5%
(2022: 5%)
Pasta
● 22% (2022: 21%)
Rice
Revenue increased
by 10% to
R17,0 billion,
reflecting average
price inflation
of 13%, offset
by overall volume
declines of 3%.
Operating income
recorded a decline
in the second half
relative to the same
period last year, driven by all segments except Maize, and Oat-based
Breakfast (Jungle), as most segments experienced higher conversion
costs compounded by adverse product mix. As a result, operating
income for the year ended 34% lower at R838 million.
Revenue in Milling and Baking increased by 8% to R11,5 billion,
as price inflation of 13% was offset by a 5% volume decline. While
bread volumes and market shares increased in line with the intended
strategy, realisations and profit margins were negatively impacted
by adverse channel mix, with volumes in the general trade declining.
The Bakery business was also impacted by the significant incremental
cost of loadshedding versus prior year (R69 million in FY23 vs.
R18 million in FY22) and higher conversion costs due to higher wages
and utilities.
Lower wholesale and retail wheat volumes were partially offset
by higher inter-company volumes, while operating income within this
segment was adversely impacted by unfavourable customer mix and
higher costs of distribution.
Maize’s performance was adversely impacted by continued volume
pressure driven by overall category declines and aggressive
competitor pricing, particularly in private label. This was partially offset
by lower conversion costs driven by lower generator utilisation and
resultant diesel cost-saving in the second half. The Sorghum-based
Breakfast and Beverages business delivered a muted performance,
impacted by supply challenges and lower demand as a result
of multiple price increases to offset the exponential increase
in sorghum. Overall, Milling and Baking’s operating income declined
by 25% to R602 million.
Revenue in Other Grains grew by 14% to R5,5 billion, as all
categories benefited from improved pricing, while Rice reported
improved volumes year-on-year. While the Oat-based Breakfast
(Jungle) segment reported pleasing operating profit growth, adverse
product mix, higher raw material and distribution costs, and sub-
optimal factory performances in the Rice and Pasta segments
adversely impacted overall profitability. Operating income declined
50% to R235 million.
Following poor price/volume management in Rice in the first half,
pleasing progress was made in restoring underlying profitability,
particularly in the last quarter. Overall, a solid volume performance was
sustained despite high levels of price increases required in the second
half to restore margins.
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewOur performanceGovernanceOur strategyOur operating contextOur business
Operational review continued
CONSUMER BRANDS
FINANCIAL PERFORMANCE
Revenue
R13,3 billion
2022: R12,4 billion
8%
Operating income
R1,2 billion
2022: R1,4 billion
18%
Operating margin
8,7%
2022: 11,1%
240bps
Performance
summary 2023
› Category contraction evidence
of change in consumer behaviour,
shifting spend to essential items and
more affordable options
› Value propositions in groceries gain
traction
› Relocation of peanut butter plant
on track
› Beverages gain share in declining
category reflective of price pack
architecture strategies and
innovation funnel
› Snacks and Treats innovations well-
received by customers and consumers
› Baby category impacted by affordability
issues resulting in lower consumer
demand across key segments
Groceries’ revenue was largely unchanged at R6,4 billion, with
price inflation of 8% offset by lower volumes of 7%. The muted
top-line performance reflects the lower category demand that was
evident in the first half, continuing into the second half, with market
volumes contracting by 5% over the year. In addition to the adverse
category dynamics, raw material shortages in the first half,
exacerbated by the low supply of eggs in the second half due
to avian influenza, resulted in factory under-recoveries. Operating
income declined by 49% to R308 million. Improving profitability
is a primary focus area for FY24, with cost reduction being a critical
focus area. Good progress has been made in this regard, with the
factory restructuring completed and initiatives underway to reduce
warehousing and distribution costs. Moreover, the relocation of the
peanut butter plant has progressed well, with the startup of the new
site on track for the first quarter of FY24.
The Snacks and Treats division recorded revenue growth of 16%
to R2,8 billion, supported by price inflation of 6% and overall volume
growth of 10% achieved primarily by the sugar segment. The
category remains in volume decline as consumers limit basket
spend to necessities. Despite this, Snacks and Treats achieved
value and volume growth ahead of the market over the 12-month
period. Operating income, however, was adversely impacted
by the reconfiguration of the plant to improve safety protocols as
well as raw material shortages. This resulted in significant under-
recoveries and lost sales. Operating income declined by 13%
to R229 million.
Beverages’ revenue increased by 17% to R2,2 billion, supported
by volume growth of 12% and price inflation of 5%. Volume growth
was achieved across all dilutable brands benefiting from optimal
pricing and effective promotional activity. This was offset in part
by a less-than-favourable volume performance from sports drinks
(Energade), which faces strong competitor activity and new listings.
Despite significant increases in the cost of key ingredients and
packaging items, operating income for the full year increased
27% to R340 million. This was due to the successful
execution of the pricing strategy in the dilutable segment,
focused continuous improvement initiatives, price pack
architecture, and revenue growth management.
The Baby segment performance reflects the continued
affordability challenges across the category as consumers
opt out of baby-specific offerings and into general meal and
wellbeing solutions for the whole family. Revenue was
marginally up at R1,1 billion, driven by price inflation of 5%,
offset by volume declines of 4%. Volumes are reflective
of lower demand across key segments, particularly jars, while
pouches continue to gain share in a declining market.
Operating income declined by 9% to R134 million, with the
benefit of improved factory efficiencies being more than offset
by lower volumes and an unfavourable product mix.
Tiger Brands Food Service Solutions delivered a strong
set of full-year results. Revenue grew by 25% to R835 million,
with volumes increasing by 15% and price inflation of 10%.
Operating income increased 12% to R152 million, benefiting
from improved efficiencies in distribution. The business
successfully executed accelerating growth in key channels
while improving the product and margin mix, supported
by strong customer relationships, cross-category
collaboration and agile solutions.
Revenue by sub-segment
Groceries
Snacks and Treats
Beverages
Baby Care
Tiger Brands Food
Service Solutions
● 48%
● 21%
● 16%
● 9%
(2022: 51%)
(2022: 19%)
(2022: 15%)
(2022: 9%)
● 6%
(2022: 6%)
Oros is the number-one ranked brand in the dilutables category having significantly grown market share this year
through optimal pricing while price pack architecture gains traction.
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Operational review continued
HOME AND PERSONAL CARE (HPC)
EXPORTS AND INTERNATIONAL
Campho r
Overall revenue in HPC grew by 17% to R2,2 billion, while operating
income increased by 50% to R461 million, driven by a strong
recovery from both segments.
Personal Care’s revenue increased by 24% to R836 million, with
price inflation of 12% and an equal increase in volumes driven
by skincare brands, Ingram’s and Skin Clinic. The improved
profitability was a consequence of strong volume growth, price
increases, and lower inflation on key ingredients. As a result,
operating income increased from R16 million last year
to R118 million in the current period.
Home Care’s performance was supported by a better pest season
relative to the prior year. Revenue increased by 12% to R1,3 billion
due to 3% volume growth and price inflation of 9%. Volume growth,
together with improved factory efficiencies, cost-containment
initiatives, and favourable mix resulted in operating income
improving by 18% to R343 million.
FINANCIAL PERFORMANCE
Revenue
R2,2 billion
2022: R1,9 billion
17%
Operating income
R461 million
2022: R308 million
50%
Operating margin
21,3%
2022: 16,6%
471bps
Performance
summary 2023
› Strong recovery in Home
and Personal Care
› Relaunch and innovation in skincare
segments, Ingram’s and Skin Clinic
drive volumes in Personal Care
› Home Care’s performance supported
by better pest season relative to last
year
› Improved factory efficiencies supported
by solar power installation boost
operating income
Revenue by sub-segment
Home Care
Personal Care
● 61% (2022: 64%)
● 39% (2022: 36%)
Ingram’s is the market leader in camphor cream. The
recent launch of body lotions leveraged the brand’s
strength and was well-received by customers
and consumers.
FINANCIAL PERFORMANCE
Revenue
R4,9 billion
2022: R4,3 billion
14%
Operating income
R601 million
2022: R350 million
71%
Operating margin
12,4%
2022: 8,2%
420bps
Performance
summary 2023
› Strong growth momentum across all
key metrics, volumes, revenue and
profitability, exceeding GDP growth
and inflation in RoA markets
› Rejuvenated and remodelled key
distributor operator model evidenced
by sound debtor management, better
visibility and availability in the trade
and higher rate of sale
› Five power brands: Benny, Jolly Jus,
Crosse & Blackwell, Ingram’s and Doom
› Number 1 brand positions in Cameroon
Revenue by sub-segment
● 47%
Exports
Central Africa (Cameroon) ● 30%
● 23%
Deciduous Fruit
(2022: 44%)
(2022: 26%)
(2022: 30%)
Total revenue for Exports and International increased by 14%
to R4,9 billion, driven by price inflation of 12% and favourable
foreign exchange translation gains of 7%, offset by volume declines
of 5%. Total operating income increased by 71% to R601 million,
benefiting from improved profitability across all segments, especially
Exports and Deciduous Fruit, and an improvement in the quality
of the debtor’s book.
We have seen a step change in trajectory for the Rest of Africa
business, with Exports reporting a marked improvement in volumes,
revenue and profitability. This has been driven by the rejuvenation
and remodelling of our key distributor model, allowing for improved
in-country visibility and availability of our brands. As a result, the
improved sales momentum achieved in the first half for the Exports
business was sustained in the second half, resulting in full-year
revenue growth of 23% to R2,5 billion. Higher volumes, improved
realisations, as well as better factory efficiencies resulted
in operating income increasing significantly to R286 million (2022:
R143 million).
Chococam’s revenue increased by 30% to R1,4 billion (15%
in local currency), comprising 9% volume growth and 8% price
inflation, supported by favourable foreign currency translation
movement of 13%. Volumes were driven by a strong performance
from the spreads segment, while pricing stability and optimal
packaging solutions resulted in market share gains. Operating
income in rand terms increased by 22% to R222 million (8% in local
currency) driven by sound cost-containment initiatives and the
benefit of rand weakness on translation.
The sale process for Deciduous Fruit (Langeberg & Ashton Foods)
was re-opened earlier in the year, with the final stage of a due
diligence process currently underway. The business will continue
in its current form to allow the due diligence process to be
completed.
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Governance
Our board
The board is the custodian of corporate governance within Tiger Brands. It has
the ultimate accountability to monitor the performance of the company through
properly constituted governance structures and ensure that the group adheres
to the highest standard of ethical behaviour.
BOARD COMPOSITION AS AT 30 SEPTEMBER 2023
Unitary board
structure
Gender
Independent
non-executives 9
Executives 2
Non-executive 1
Women 7
Men 6
1 Cora Fernandez stepped down as non-executive
director with effect from 10 October 2023
2 Noel Doyle stepped down as CEO and executive
director, with effect from 31 October 2023
3 Tjaart Kruger appointed as CEO and executive
director, with effect from 1 November 2023
54% representation of women
on the board against 50% target
Demographic
Age
Tenure
Black 9^
60 to 69 years 9
0 to 3 years 6
White 4
50 to 59 years 1
3 to 6 years 4
^ 3 Non-South Africans
40 to 49 years 2
6 to 8 years 3
Board diversity
The Tiger Brands board comprises a diverse set
of corporate leadership skills, perspectives and
deep industry knowledge enabling the company
to achieve its strategic objectives and support
long-term value creation. To this end, the
diversity of skills was further strengthened by the
appointment of Sam Sithole as non-executive
director with effect from 1 April 2023.
Sam Sithole has deep-seated capital allocation
skills and a proven track record of valuable
contributions at other listed entities.
The board provided effective leadership and
strategic direction in the best interest of the
company and its stakeholders, and is satisfied
that it has executed on its mandate.
Any term in office by an independent non-
executive director exceeding nine years
is subject to a vigorous review by the board.
Mr Michael Ajukwu will complete nine years
of service as a non-executive director
on 31 March 2024. After taking into account,
among other considerations, the extent
to which the diversity of his views, skills and
experience continue to enhance the board’s
effectiveness, the board is satisfied that
Mr Ajukwu’s independence is not impaired
by his length of service and resolved to extend
his tenure until the company’s AGM in 2025.
46% representation
of black board members
(South African) against
50% target
70
Separation of powers
The board is led by the independent chairman, whose role and functions are clearly defined and separate from that of the CEO.
The board charter sets out a clear division of responsibilities and authority at board level, providing that no individual director has
unfettered powers of decision-making or influence over the board. Emma Mashilwane was appointed lead independent director with
effect from 1 March 2023. The roles and functions of the chairman, the lead independent director and the CEO are clearly defined
in the board charter.
The group embraces the principles of ethical leadership and good corporate governance aligned to the King IV™ Code, JSE
Listings Requirements, the Companies Act and other relevant laws and regulations.
The application of the King IV™ principles is available on the company’s website on
review of our integration of sustainability-related issues in our governance processes is provided in our
www.tigerbrands.com. A more detailed
sustainability report.
OUR EXECUTIVE COMMITTEE
The executive committee is an experienced and diverse team with appropriate knowledge and backgrounds to effectively
execute the group’s strategic priorities and is responsible for control of the operational activities in line with the board’s mandate.
Executive gender
Executive age
Executive tenure
Women 27%
Men 73%
40 to 49 years 3
50 to 59 years 6
60 to 69 years 2
0 to 3 years 4
3 to 6 years 5
6 to 8 years 2
Attendance at board meetings
Board meetings take place at least quarterly. The board also meets annually to consider
and approve the group strategy and the budget for the ensuing year.
This year, four special board meetings were convened to deliberate on critical matters
that needed the attention of the board during the review period.
^ Cora Fernandez and Emma Mashilwane tendered their apologies for the unscheduled/special board meeting
9
Number
of meetings
98%^
Attendance
BOARD KEY HIGHLIGHTS IN 2023
› Monitored the business performance
in the context of global macro-economic
environment
› Oversaw the board and senior
management succession plan
› Monitored the ESG and climate change
landscape
› Reviewed and supported the digital
› Monitored the liquidity and balance sheet
transformation agenda
› Monitored stakeholder engagements
› Considered the efficiency and
optimisation initiatives
› Reviewed the group’s strategy and
supported its strategic goals for the
period FY24 to FY28
› Monitored the organisational culture
transformation journey and people agenda
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business
Governance continued
Board committees’ composition and responsibilities
The board has delegated certain of its functions to board committees to assist it in meeting its
oversight responsibilities. The board committees operate under clearly defined mandates that set
out the roles, responsibilities and scope of decision-making powers. Annually, the membership
of individual committees is reviewed for the appropriateness of skills and knowledge required
by each committee to effectively execute its mandate.
The chairmen of the board committees provide regular feedback to the board on key deliberations
and decisions taken by the committees, as well as matters worthy of the board’s attention.
The board is satisfied that the committees effectively executed their key responsibilities in 2023.
AC
AUDIT COMMITTEE
Committee mandate
The committee primarily oversees the
integrity of the company’s financial
reporting, monitors the strength of internal
financial controls and ensures the
effectiveness of assurance services and
functions, with particular focus
on combined assurance arrangements,
including external assurance service
providers, the finance function and internal
audit.
financial and non-financial reporting
and recommended their re-appointment to shareholders
Highlights in 2023
› Oversight of the integrity and effectiveness of the
› Evaluated the effectiveness of the internal financial
reporting controls and the combined assurance model
› Assessed the independence of the external auditors
› Considered the company’s performance, going-
concern assumptions and liquidity management
› Confirm solvency and liquidity in the context
› Considered the accounting treatment and disclosures
› Assessed the processes and effectiveness of our
and the group’s impairment assessments
of distributions
compliance with regulatory requirements and changes
to operating environment
› Assessed the independence and effectiveness
of external auditors
Committee members
› CH Fernandez (chairman)^
› FNJ Braeken
› TE Mashilwane#
› M Sello°
› DG Wilson*
Number of meetings: 4
Attendance: 99%
The audit committee report is set out on page 2 of the annual financial statements.
^ Stepped down as non-executive director of the company effective 10 October 2023
# Appointed as member of the committee effective 10 October 2023
* Appointed as chairman of the committee effective 10 October 2023
° Mahlape Sello tendered her apology for one scheduled audit committee meeting
SET
SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE
Committee mandate
The committee fulfils the statutory duties
as set out in Regulation 43 of the
Companies Act and has oversight of and
reports on organisational ethics,
responsible corporate citizenship,
sustainable development and stakeholder
relationships, and assists the board
in facilitating and supporting the
development of transformation objectives,
ensuring that the corporate culture
is supportive of the approach and
monitoring and reporting actual
performance against these objectives.
Highlights in 2023
› Monitored the group’s activities in respect of good
corporate citizenship
› Ensured processes are in place to promote an ethical
culture
› Monitored the socio-economic development
initiatives aimed at uplifting the communities where
Tiger Brands operates
› Monitored stakeholder engagement activities and the
employee relations environment
› Ensured processes are in place to drive the
company’s transformation objectives
› Monitored the company’s regulatory compliance
programme and the people’s agenda
Committee members
› TE Mashilwane (chairman)
› MO Ajukwu
› NP Doyle^
› GA Klintworth
› TN Kruger#
› M Sello*
Number of meetings: 3
The social, ethics and transformation committee report is set out on page 6 of the sustainability report.
Attendance: 99%
^ Stepped down as executive director of the company effective 31 October 2023
# Appointed as member of the committee effective 1 November 2023
* Mahlape Sello tendered her apology for one scheduled social, ethics and transformation committee meeting
RS
RISK AND SUSTAINABILITY COMMITTEE
Committee mandate
The committee assists the board
in its oversight of the management
of risk and mitigation strategies
across the group.
Highlights in 2023
› Evaluated and monitored key risks and the overall business
risk profile and response plan to address the group’s risks
appropriately
› Ensured maturity and effectiveness of enterprise risk
management processes and continuously monitored the
implementation of the risk management plans
› Reviewed the combined assurance plan
› Considered the company’s ESG disclosures and assessed the
implementation of science-based targets
› Monitored the health, safety, security and environment
activities of the group
› Monitored the impact of water scarcity, loadshedding and
climate change on the company’s operating environment
› Monitored the quality and food safety performance and
assessed the maturity level of Tiger Brand’s food safety culture
Committee members
› M Sello (chairman)*
› MO Ajukwu
› FNJ Braeken
› CH Fernandez^
› GA Klintworth
› GJ Fraser-Moleketi
› OM Weber
› DG Wilson#
Number of meetings: 3
Attendance: 99%
The risk management report is set out on
page 37.
* Mahlape Sello tendered her apology for one scheduled risk and sustainability committee meeting
^ Stepped down as non-executive director of the company effective 10 October 2023
# Appointed as member of the committee effective 10 October 2023
RC
REMUNERATION COMMITTEE
Committee mandate
The committee assists the board
in ensuring Tiger Brands’
remuneration policies and practices
are aligned with the company’s
objectives for value creation and
are benchmarked to ensure
fairness and competitiveness
in remuneration of employees
to attract and retain key talent and
critical skills required to deliver
business goals and results.
Highlights in 2023
› Evaluated the effectiveness of the reward strategies, including
policy and practices designed to attract, motivate and retain
talent
› Engaged with key shareholders and deliberated relevant
feedback
› Evaluated the group’s short-term and long-term incentives
plans to ensure relevance and effectiveness
› Continued engaging with our shareholders on remuneration
policy and the implementation report to ensure appropriateness
of the reward mechanism
› Evaluated the minimum shareholding policy to encourage
compliance
Number of meetings: 5
Attendance: 100%
The remuneration report is set out on
page 75.
^ Stepped down as chair of the committee effective 10 October 2023
# Appointed as member of the committee effective 1 June 2023
* Appointed as chairman of the committee effective 10 October 2023
Committee members
› DG Wilson (chairman)^
› GJ Fraser-Moleketi
› TE Mashilwane
› S Sithole#
› LA Swartz*
› OM Weber
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Remuneration and performance
NG
NOMINATION AND GOVERNANCE COMMITTEE
Committee mandate
The committee assists the board
in ensuring performance of the board, its
committees and directors. It reviews the
composition of the board and its
committees and recommends suitable
candidates to fill vacancies on these
governance structures, ensures the
implementation of Tiger Brands’
succession plans, and reviews continuous
development programmes for directors.
Highlights in 2023
› Evaluated the board composition to ensure
it appropriately reflects the combination of expertise
and experience required for Tiger Brands’ future
› Assessed the succession mechanism for the board,
executive management and other critical skills
to ensure effective talent pipelines are in place
› Conducted the nomination and selection process
to ensure right skills are considered for appointment
to the board
› Ensured continuous development of directors
through the execution of appropriate induction and
training sessions
Number of meetings: 5
Attendance: 100%
# Appointed as member of the committee effective 1 June 2023
^ Stepped down as member of the committee effective 10 October 2023
Committee members
› GJ Fraser-Moleketi
(chairman)
› TE Mashilwane
› S Sithole#
› LA Swartz
› OM Weber
› DG Wilson^
I
INVESTMENT COMMITTEE
Committee mandate
The committee assists the board
in assessing mergers, acquisitions,
investment opportunities and divestments
in line with the group’s strategic objectives.
Highlights in 2023
› Assessed acquisition, investments and divestments
Committee members
› GJ Fraser-Moleketi
opportunities in line with the group’s strategic
objectives
› Monitored the group's investments performance
(chairman)^
› FNJ Braeken
› CH Fernandez*
› TE Mashilwane
› S Sithole#
› OM Weber
› DG Wilson
Number of meetings: 3
Attendance: 100%
^ Stepped down as chairman of the committee effective 10 October 2023
* Stepped down as non-executive director of the company effective 10 October 2023
# Appointed member and chairman of the committee effective 1 June 2023 and 10 October 2023, respectively
Section 1: Background statement
Statement from the chairman of the
remuneration committee
Dear stakeholder
On behalf of the remuneration committee (the committee),
I am pleased to present the 2023 remuneration report which,
in compliance with best practice reporting as recommended
by the King IV™ Report on Corporate Governance for South
Africa highlights:
› Key components of our remuneration policy
› Alignment of our remuneration policy with the Tiger Brands’
business strategy and priorities
› Implementation of the policy for the year ended
30 September 2023 (FY23)
During the period under review, the Tiger Brands executive
leadership team have led the execution of our five strategic
priorities to drive business performance, growth and
innovation while proactively navigating very challenging
market conditions. The six strategic priorities continued
to focus the organisation on:
1. Meeting the needs of the consumer
2. Building a growth pipeline
3. Be obsessed about cost-savings and efficiencies
4. Optimising our supply chain
5. Igniting our people
6. Investing in a sustainable future
Our remuneration outcomes
Operating in a pressurised consumer market, in the context
of persistently elevated food inflation, high interest rates, low
economic growth, and high cost of living, the company
experienced pressure on sales volumes in the domestic
business and overall group margins. As a result, the company
did not achieve the threshold group EBIT target required
to release funding for the group portion of the short-term
incentive (STI). As our remuneration philosophy is clear
on the principle of pay for performance, Tiger Brands
executives (CEO, CFO and Exco) will receive no STI in FY23.
The third and last tranche of share appreciation rights (SARs)
that vested in FY23 did not achieve the minimum
performance conditions for both the HEPS and ROIC targets.
As a result, this tranche of SARs lapsed. The performance
vesting shares (PVS) awarded in December 2020 will vest
on 3 December 2023. For the period covering this award,
the HEPS stretch target was exceeded, resulting in a 200%
vesting rate of this portion (50% of award). The ROIC
threshold target was achieved, resulting in a 25,49% vesting
of this component. As a result, the overall vesting of the
December 2020 PVS award is at 112,7%.
The one-off retention payments and share grants made
to executive committee members (as detailed in the FY22
report) to stabilise and retain key talent succeeded
in retaining the services of 88% of recipients to ensure the
continued focus on business performance in the context
of challenging economic conditions. The resignation of the
CFO, Deepa Sita, to pursue a new opportunity in Australia
was announced during the year. Consequently, Deepa’s
retention share awards under this initiative shall be forfeited
as the vesting date is December 2024.
As announced in October 2023, the board and Noel Doyle
jointly agreed that he steps down as CEO. The terms of the
separation were mutually agreed upon, the principles
of which are disclosed on
Tjaart Kruger, commenced service in November 2023.
His compensation details are disclosed on
page 89. The incoming CEO,
pages 89 and 90.
Policy enhancements
During the period under review, further enhancements were
made to the remuneration strategy to improve alignment
of critical business key performance indicators (KPIs)
to measure and reward performance against our strategy.
As such, the remuneration committee approved the
implementation of a revised short-term incentive (STI)
scorecard that enables the achievement of key performance
indicators as well as maintains a balance between the focus
on financial, strategic and sustainability measures.
As reported in FY22, ESG-associated targets to drive and
measure our performance were implemented. To this end,
the remuneration committee approved an ESG key
performance indicator (KPI) and associated targets for
inclusion in the FY23 short-term incentive scheme scorecard
(
see page 83: FY24 group and business unit performance
factors, and
pages 90 and 91: executive directors
performance scorecard FY23).
The committee also approved an upward revision of on-target
and stretch conditions in respect of the long-term incentive plan
(
see table on page 84: LTI performance conditions).
Shareholder voting outcomes
The remuneration committee maintains strong relationships
with shareholders and strives towards high standards
of disclosure of our remuneration approach to ensure that
there is a clear understanding of our remuneration policy and
the practices that have been adopted.
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The non-binding advisory votes by shareholders for the past
four years are summarised as follows:
Voting history
% vote in favour
Remuneration
policy
Remuneration
implementation
February
2023
February
2022
February
2021
February
2020
73,70% 91,55% 89,20% 76,55%
53,81% 96,94% 82,24% 78,71%
Neither remuneration policy nor the implementation report
achieved the requisite threshold of 75% non-binding advisory
approval. Tiger Brands is committed to continuous and
robust shareholder engagement. To this end, key
shareholders were engaged prior to the annual general
meeting as well as in response to the voting outcomes.
The outcomes of these engagements are addressed
in the following section.
Shareholder engagement
The remuneration committee chairman, the chief human
resources officer (CHRO) and investor relations conducted
a series of engagements with key shareholders, with the
feedback summarised below:
1. General feedback
Most shareholders were complimentary on how the
Tiger Brands' remuneration policy has been simplified,
improved and aligned more explicitly with shareholder
interests over the last three years. They were also
appreciative on how the disclosure in the remuneration
report had become progressively more transparent.
2. Retention grants to executive team (excluding CEO)
Although the majority of shareholders indicated support
for the retention payments, citing their understanding
of the fine balance between retaining skill and aligning
management reward with shareholder returns, there were
reservations expressed around the usage of a) cash
payments, and b) restricted shares, the vesting criterion
of which is only time with no performance vesting criteria.
The shareholders also requested full disclosure
of retention payments in the remuneration report. The
retention payments were fully disclosed in the FY22
remuneration report.
3. ESG metrics
Most shareholders indicated that they rely on companies
to indicate which metrics are most relevant to creating
long term, sustainable value but mentioned carbon
emissions, energy efficiencies and water as relevant
in the context of companies operating in South Africa.
Tiger Brands has a comprehensive ESG strategy
(
see the sustainability report). In addition to existing
KPIs for efficiency, quality and safety, reduction in carbon
emissions was integrated into the short-term incentive
(STI) scorecard in FY23.
4. Minimum shareholding requirement targets
Consistent feedback from all shareholders was that the
minimum shareholding requirement (MSR) targets are
on the lower side, with best practice being 300% for the
CEO, 200% for the CFO, and 100% for the rest of the
executive committee. In addition, they recommended that
Tiger Brands considers putting mechanisms in place
to enable executives to meet MSR requirements within
the set period. The remuneration policy has been
benchmarked against market practice and reviewed
accordingly to make the mechanisms that enable
executives to meet the MSR requirements more explicit.
5. Retrospective disclosure of business performance
targets used to determine short-term incentives
An area of improvement for the majority of shareholders
is the disclosure of retrospective business performance
targets used to determine short-term incentives. The
remuneration committee has considered this feedback
and made a decision to continue to align the disclosure
policies with industry standards so as to proactively
manage the risk of disclosing information that could
jeopardise Tiger Brands’ competitive position
in the market.
The remuneration committee is committed to shareholder
engagement and takes the following steps, if 25% or more
of total votes exercised by shareholders at the AGM are
against the remuneration policy or implementation report:
› Tiger Brands seeks to actively engage with dissenting
shareholders by inviting them to one-on-one meetings
by issuing a SENS announcement, requesting shareholders
to appropriately engage on their specific concerns
› Tiger Brands considers the shareholder concerns and
reports on the outcome of the engagements and measures
taken in its next integrated report
Key focus areas, objectives, and actions for
FY23
In FY23, the committee executed its duties in line with
the approved annual work plan, which included the
following activities:
› Reviewed and approved changes to the remuneration
policy based on shareholder feedback and market
developments
› Reviewed the outcome of the voting of the remuneration
and implementation reports, and deliberated
on shareholder feedback to focus the response
› Ratified discretionary LTI awards related to the appointment
of persons in senior management positions, where such
awards are made in lieu of forfeited awards when
they resign
› Approved STI payments and LTI allocations to executive
and senior management
› Ratified group-wide business performance outcomes
› Approved executive director and Exco member
remuneration packages on appointment
› Reviewed and approved STI audit report and
recommendations
› Reviewed the rules of the share incentive scheme,
benchmarked appropriateness of performance conditions
and targets, and prospectively amended the performance
conditions for HEPS outperformance vesting, as well
as ROIC conditions for on-target performance
› Approved the wage negotiation mandate for bargaining
unit employees
› Approved the salary increase mandate for employees
on total remuneration packages (TRP)
› Approved the remuneration for executive directors and
executive committee members
› Approved the STI and LTI performance conditions, targets,
and weightings in respect of FY24
› Recommended for approval to the board the non-executive
directors’ (NEDs) fee increase
› Evaluated the performance of the committee against its
terms of reference
› Approved the remuneration implementation report as part
of the annual financial statements
› Approved the remuneration policy and implementation
report for inclusion in the integrated report
› Approved the CEO performance agreement
Key future focus areas of the committee for
FY24
The focus areas are deliberately designed to ensure the
committee remains abreast of the latest remuneration market
trends and best practice, business needs, as well as our
responsibilities to Tiger Brands’ people, shareholders, and
communities to ensure that our remuneration practices
enable and support the delivery of the business strategy.
Key focus areas in FY24 will include:
› Reviewing the STI integrated scorecard to align our people
with business objectives and shareholder interests, and
to ignite winning performance
› Benchmarking of the total reward of the executive
committee, non-executive directors, and senior
management against the set comparator group of JSE-
listed companies
› Consider market-aligned amendments to remuneration
policy and mechanisms to drive retention and the
accelerated progression towards minimum shareholder
requirements
› In terms of our commitment to fair and responsible pay,
a continuous review of our approach to monitor and
address identified pay inequities during the annual salary
review process, as well as during ongoing remuneration
decision points
› Continue to review our reward mechanisms and practices,
with a view to introducing innovative reward strategies to:
– Ignite winning performance
– Attract, retain, and motivate key and critical talent
– Embed the recognition platform and practices to improve
the way we recognise execution excellence, agility, and
consumer obsession
External advice provided to the committee
in FY23
We enlist the services of PwC South Africa for purposes
of independent benchmarking, incentive scheme market
practice, remuneration trends and survey data. KPMG
is engaged for the purposes of auditing STI payments
and to assist with the review of the single figure of the
remuneration table. The committee is satisfied that PwC
South Africa and KPMG are independent and remain
objective in providing the services.
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Remuneration and performance continued
Voting at AGM
As required by the King IV™ Code on Corporate
Governance, the remuneration policy and implementation
report that follow will be tabled for separate, non-binding
advisory votes by shareholders at the upcoming AGM
in February 2024. As required by the Companies Act,
non-executive directors’ fees for the coming year will be put
to shareholders by way of a special resolution. We are
committed to engaging with shareholders as required
to discuss issues of concern and, therefore, encourage
shareholders to provide feedback.
Achievement of policy objectives
On behalf of the committee, I am satisfied that the
remuneration policy is appropriate, and I am confident that
our remuneration policy has achieved the desired outcomes
for FY23 and is aligned with the company’s strategic goals
and shareholder interests. The remuneration disclosures
presented in this report have been made in compliance
with the remuneration policy as approved by shareholders.
No known deviations from the remuneration policy have
been made in the current financial year.
As I take over the chairmanship of the remuneration
committee, I would like to thank Don Wilson for his service
as chairman of this committee for the last three years
and wish him well with his new role as chairman of the
audit committee.
Lucia Swartz
Chairman: remuneration committee
30 November 2023
KOO baked beans in tomato sauce has been a firm favourite among South Africans for over 80 years. With
market shares in excess of 60%, it is the most preferred brand among consumers and is loved by South Africans
more than any other brand of baked beans.
Unjustifiable pay differentials are addressed during the annual
reward review process, where we assess and adjust the
salaries of unjustifiably underpaid employees in line with the
prevailing mandate. This salary adjustment is generally
capped at a predetermined percentage to limit exorbitant
increases. Specific focus is given to African, Coloured,
female, and employees in roles that are classified as scarce
and critical skills.
In addition, we follow a systemic approach in day-to-day
decision-making by ensuring individual pay and salary ranges
are matched to similar roles in the market, and frameworks
that guide decision-makers to ensure that new appointments,
promotions, and other pay review opportunities are executed
in accordance with our set standards and parameters.
At every compensation review opportunity, we consider,
report and interrogate pay differentials seen through various
lenses, including gender and race. At every compensation
decision point, we ensure that these differentials, where they
are unjustified, are addressed with a view to continuously
narrow such gaps. After each company-wide pay review,
these outcomes and trends are reported to the board for
approval before implementation. As a result, income
differentials have closed significantly since 2018 when
we started to apply dedicated and structured efforts.
To maintain the focus on fair and responsible pay, Tiger
Brands will perform regular analyses of compensation
differentials and close gaps accordingly.
Tiger Brands’ remuneration strategy
The company’s remuneration strategy is aligned to the Tiger
Brands’ people strategy, which is geared to enable the
execution of the business strategy and accelerate business
performance.
Our remuneration principles have been designed to support
the execution of the people strategy and are premised
on our belief that great people and great brands are at the
core of our success. Our reward framework is holistic,
encompassing the financial elements of reward as well
as non-financial aspects such as recognition, development,
the work environment, culture and meaningful work.
Section 2: Overview of remuneration
policy
Remuneration governance
The membership of the Tiger Brands remuneration
committee consists of a minimum of three non-executive
directors, the majority of who are independent. The CEO
is a permanent invitee to all meetings and other executives
attend the meetings by invitation.
The CEO and nominated invitees are not present when matters
relating to their own remuneration are discussed. The group
company secretary is the secretary of the committee.
The committee meets four times a year and, where
necessary, additional meetings may be held.
The role of the committee is to provide independent and
objective assistance to the board in ensuring that Tiger
Brands remunerates fairly, responsibly, and transparently
to promote the achievement of strategic objectives and
positive performance outcomes in the short, medium
and long term.
As documented in the remuneration committee terms
of reference, the duties and responsibilities of the
committee are:
› Remuneration governance
› Executive and senior management remuneration and
performance
› Non-executive director remuneration
The terms of reference are reviewed annually.
Fair and responsible remuneration
Tiger Brands is committed to a total reward offering built
on a strong foundation of fair and responsible pay that
is linked to our remuneration philosophy of pay for
performance. Salaries are benchmarked against the
REMchannel® salary survey once a year to ensure that
remuneration decisions are fair and in line with market
practice. We also follow a job-grading methodology that
is consistent and provides a fair and accurate job grade,
which allows for proper salary benchmarking.
Our pay progression model strives to fairly reward employees
based on performance and market positioning. It enables
us to actively manage outlier compensation in a fair and
responsible manner, and to ensure that differentials that exist
are justifiable.
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REWARD FRAMEWORK
BUSINESS STRATEGY
DEVELOP
TALENT
INSPIRE WINNING
PERFORMANCE
EMPLOYEE VALUE
PROPOSITION
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People strategy
The following are the key objectives of our remuneration policy:
› Strengthen our ability to competitively attract and retain talent to enable the execution of our strategy
› Motivate and stimulate high performance across Tiger Brands through competitive short and long-term incentives
› Ensure fair and responsible pay
› Ensure that reward mechanisms are simple and provide line of sight to all employees
› Align Tiger Brands’ annual and long-term performance to the delivery of the strategy
› Align Tiger Brands’ reward structures with shareholder interests
Below we have summarised the various remuneration elements (guaranteed package, short-term incentive, and long-term
incentive) that Tiger Brands offers at different levels of employment:
Compensation mix
FIXED COMPENSATION
VARIABLE COMPENSATION
Total remuneration package
(Base salary, medical aid,
retirement fund and
insured benefits)
Base salary and benefits
(As per union agreement)
/
/
/
Executive directors
Exco
Senior management
/ Management
/
/
Skilled employees
Bargaining unit
Long-term
incentive (LTI)
Short-term incentive (STI)
Thirteenth cheque
(As per agreement)
Guaranteed package (excluding bargaining unit
employees)
Description
Guaranteed package (GP) offered to people on a total
remuneration package basis (TRP) comprises base pay,
allowances, retirement and medical benefits. It is reviewed
annually based on personal performance (KPIs linked
to individual performance agreements (IPA) for each TRP
employee, which is agreed to at the commencement of every
year), business performance (linked to budget), behaviours
aligned with company values, and market competitiveness
(national and sector benchmarks).
Companies included in the comparator group comprise:
Factor
Executive directors
Benchmarks
Benchmarking for executive directors is based
on a comparator group of companies and is reviewed
on a bi-annual basis. The comparator group is determined
using the closeness metric formula, which measures how
similar a candidate company is to Tiger Brands, and is based
on:
› Total assets
› Turnover
› Earnings before interest, tax, depreciation and amortisation
Survey type
Bespoke survey
Public data of South African companies listed on the JSE, based
on the closeness metric used to determine an appropriate comparator
group
JSE-listed
comparator
group*
The Foschini Group Limited
AVI Limited
Clicks Group Limited
KAP Industrials Holdings Limited
Dischem Pharmacies Limited
Mr Price Group Limited
Pick n Pay Stores Limited
Rest of Exco, senior
management, and below
REMchannel® survey: National and
consumer goods circles
RCL Foods Limited
Oceana Group Limited
Woolworths Holdings Limited
Barloworld Limited
Libstar Holdings Limited
*
From FY22, the same comparator group is issued for executive directors’ and non-executive directors’ remuneration benchmarking
Anchor point
Tiger Brands has anchored its current pay position at the 65th percentile of the national market. We aspire
to achieve a normal distribution around the anchor point based on individual performance, talent, potential,
experience and scarcity and criticality of skills. The performance-based increases granted in the organisation
(including those for executive directors and executive committee members) are managed within the overall
salary increase budget.
Benefits
Benefits include retirement fund contributions, funeral cover, permanent health insurance, death-in-service
cover, medical aid contributions and travel allowances (where applicable).
Short-term incentive (STI)
Description and link to strategy
The primary intention of the STI is to improve business performance by focusing participants’ attention on annual key financial,
strategic, functional and personal performance objectives (KPIs based on a balanced scorecard), which are aligned with the
long-term business strategy for sustainable value creation. This drives high performance by explicitly creating line of sight
in linking group, business unit and individual performance.
› All permanent employees on a guaranteed package in Paterson grades CU and above are eligible to participate
› The STI is paid annually, in cash, to qualifying people who are employed by the organisation on the payment date
› The on-target percentage (as a percentage of guaranteed package) is benchmarked against the South African market
to ensure market practice alignment. It is based on affordability, and the STI payment is based on achieving defined objectives
› The STI outcomes are determined based on a multiple of the on-target STI, which comprises three performance factors,
reflecting the three dimensions of performance that are expected from employees:
– A group performance factor focused on group financial and non-financial metrics
– A business unit performance factor focused on business unit financial and non-financial metrics
– An individual performance factor focused on individual performance objectives, which allows for differentiation in rewarding
high performers
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business
Remuneration and performance continued
Payment of an STI is subject to the overriding condition that the group and business unit meet or exceed the agreed entry
threshold in respect of its earnings before interest and tax (EBIT).
Calculation
Group performance factor
(0 to 200%)
STI
Annual
TRP (GP)
On-target
%
Business unit performance factor
(0 to 200%)
Individual performance
(0 to 200%)
EBIT THRESHOLD GATEKEEPER
Predetermined weightings are applied to each of the performance factors, ranging from 50% (threshold performance) to 200%
(stretch performance). In respect of the individual performance factor, participants will be rated on a rating scale ranging from
1 (poor performer) to 5 (exceptional performer).
Target and maximum
In FY24, the following ranges of STI awards will apply to the various categories of people covered by this report:
Maximum
percentage of
guaranteed
package
(based on the
achievement
of stretch
performance)
(%)
On-target
percentage of
guaranteed
package
(%)
60
60
50
40
35
17,5
12,5
8,5
120
120
100
80
70
35
25
17
CEO, CFO and executive directors
Executive committee members
Senior management (EU MDs)
Senior management (EU)
Senior management (EL)
Qualified and experienced specialists and mid-management (DU)
Qualified and experienced specialists and mid-management (DL)
Technical, skilled and supervisory employees (CU band)
82
Group and business unit performance factors
The underlying values and weightings for each KPI are set and approved by the remuneration committee in advance of each
year to determine parameters for the STI in the form of a balanced scorecard. The STI scorecard for 2024 is simplified so as
to ensure sharper focus on key outcomes. Below is the group STI scorecard for FY24 that will be applied to the CEO, CFO,
executive directors, executive committee members, and other participants:
Strategic objective
Performance and
growth
Enablers:
People and
sustainability
Strategic
objective
weighting Key performance indicator
Key
performance
indicator
weighting
Threshold
score =
50%
On-target
score =
100%
Stretch
score =
200%
80% Brand equity
EBIT (absolute)
EBIT (margin)
Gross margin
Working capital management
5%
25%
20%
20%
10%
89%
95%
96%
98%
100%
100%
100%
100%
111%
105%
108%
105%
Cash conversion rate (cash generated
from operations as a % of EBITDA)
86%
100%
143%
20% Quality and food safety
5%
Reduction in complaints year-on-year
Safety (LTI manufacturing)
Carbon emissions
Talent pipeline
5%
5%
5%
83%
94%
80%
100%
100%
100%
117%
107%
140%
% internal leadership appointments
75%
100%
125%
The actual targets have not been provided as they are linked to budget and considered to be commercially sensitive information
*
** The targeted percentages for “threshold”, “on-target” and “stretch” as set out above per key performance indicator represent the targeted percentage
achievement of the underlying budgeted amounts
The group, business unit and individual performance weightings applicable to the various employee categories are detailed
below:
Employee category
CEO, CFO and executive directors
Executive committee members
Group
80%
80%
0%
0%
Other participants (Paterson grades CU to E band)
0% to 40% 40% to 80%
Business
unit
Individual
20%
20%
20%
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Remuneration and performance continued
Long-term incentive
Description
The LTI is aligned to our reward approach and operating model, taking into consideration the following principles:
› Strengthen our ability to competitively attract and retain talent to enable the execution of our business strategy
› Align Tiger Brands’ leadership performance to our long-term strategy and to unleashing the power of our people objective
Employees in Paterson grade D and above may be eligible to participate in the annual awards of the long-term incentive.
The table below provides further detail regarding the performance and restricted shares awarded under the long-term incentive plan:
Instrument
Performance shares
Employee category
Restricted shares
Employee category
Performance
shares award
multiple as a %
of guaranteed
pay
Award
mechanism
CEO
CFO
81,3% CEO
81,3% CFO
Executive committee members
61,0% Executive committee members
Restricted
shares
award multiple
as a % of
guaranteed pay
–
–
–
Senior management and below
› A personal performance multiplier is used to modify the standard quantum of performance shares and
10,6% to 27,7% Senior management and below
8,2% to 22,9%
restricted shares, based on an individual’s personal sustained performance and potential, and, taken into
account over the last three years, a percentage ranging from 0% to 150% is applied on award.
› TGP x (performance share award multiple
x performance multiplier)/10-day VWAP
on award date
› TGB x (performance share award multiple
x performance multiplier)/10-day VWAP
on award date
Performance
multiplier
Calculation
of award
quantum
Vesting
› Vesting is subject to the satisfaction
of performance conditions over the three-year
performance period and remaining in service
at vesting date
Performance
conditions
applicable
to performance
shares
HEPS growth (weighted at 50%):
› 0 – less than CPI + GDP
› 25% vesting (threshold) – CPI + GDP
› 100% vesting – CPI + GDP +2%
› 200% vesting (stretch) – CPI + GDP +5%(1)
The HEPS calculation is performed on an annual compound basis over the three-year vesting period.
Linear vesting to apply between threshold and stretch.
ROIC (weighted at 50%):
› 0 – less than WACC +1%
› 25% vesting (threshold) – WACC +1%
› 100% vesting – WACC +3%(2)
› 200% vesting (stretch) – WACC +5% and above
The measurement will be the average ROIC over the three-year vesting period.
Linear vesting to apply between threshold and stretch.
Definition of ROIC: Operating income from total operations before impairments and non-operational items
(reduced by the group’s average tax rate) plus the after-tax share of income from associates as a percentage
of average invested capital. Invested capital comprises the book value of total equity (which is inclusive
of non-controlling interests), plus long-term and short-term borrowings (including the liability arising from
IFRS 16), less the value of cash on hand and cash equivalents. Invested capital is also increased by the
re-instatement of any write-offs/impairments (both historically as well in the current period) that are included
in non-operational income of any intangible assets, fixed assets, and associates. The average invested capital
is determined by calculating the simple average of the aforesaid balances, based on their values at the
beginning and end of the relevant financial year.
› Based on the volume-weighted average price (VWAP) for a Tiger Brands share calculated for the 10-day
trading period ending immediately prior to the date of award/grant
Share price
(1) +4% for all allocations before December 2023
(2) +2% for all allocations before December 2023
84
Historical LTI information
Eligible employees who have been awarded SARs prior to its discontinuation in FY19 continue to participate in the SARs.
No new SARs awarded since FY19.
BEE shares
The following two schemes were established as part of the company’s black empowerment strategy:
› Tiger Brands Black Managers Trust (BMT I)
– Established in 2005 to attract and retain diverse talent
– Rights allocated – Tiger Brands shares. Rights are settled after making the required capital contributions to BMT I. For all
rights allocated on or before 31 July 2010, settlement may take place at any time after the initial lock-in period, i.e. from
1 January 2015. For all rights allocated after 31 July 2010, the lock-in date varies depending on the date of allocation. The
scheme made its final allocation in August 2022
› Thusani Trust
– Established in 2005 as part of the company’s BEE phase I empowerment initiative. The trust’s resources were enhanced
in 2009 under the company’s BEE phase II transaction
– The trust provides bursaries for tertiary education to dependants of permanently employed black persons who might not
otherwise be able to afford this cost
Dilution
In compliance with the JSE Listings Requirements, the LTIP contains limits setting out the aggregate maximum number
of shares that may be settled to all participants as well as the aggregate maximum number of shares to be settled to any one
participant. The LTIP rules provide that these limits are not applicable where shares acquired on the JSE are used to settle LTIP
awards. Tiger’s practice is to purchase shares in the market and the LTIP therefore does not result in any dilution
to shareholders.
Minimum shareholding policy
We have a minimum shareholding policy, where senior executives are expected to build up their personal shareholding
in the company over a specific period. In the case of the CEO, the target is 200% of guaranteed package, while the target for
executive directors and members of the Exco is 100% of guaranteed package. Senior executives who were in service when the
policy was adopted in 2016 have six years to build up their shareholding from date of adoption. Senior executives appointed
after adoption have six years to build their shareholding from date of appointment. They may use any vesting LTIs or their own
resources to acquire these shares.
In order to accelerate the progress towards achieving minimum shareholding, this policy was amended to compel a commitment
of a minimum of 30% (thirty percent) of executives’ vested long-term incentives towards their shareholding pre-tax or post-tax,
or such portion required to reach the minimum shareholding, should they be less than 30% below the requirement.
Exemption from compliance with the minimum shareholding requirements
In the case of the minimum shareholding requirement not being met, the board retains the overriding discretion to:
› Vary the minimum shareholding level, extend the determination date, or reset the commencement of the build-up period for
an individual executive or the executives as a whole. This will only be allowed to apply in exceptional circumstances
considered as “business unusual”
› Determine that an executive has complied with the policy even if the number of shares held by an executive does not meet the
minimum shareholding requirements. Such an exemption will only be allowed in exceptional circumstances where compliance
will result in severe financial difficulty for an executive or prevent an executive from complying with an order of a court of law
85
› Three-year, time-based vesting based on anniversary
of grant and remaining in service at vesting date
On 30 September 2023, the aggregate number of shares that may be acquired by participants under the various schemes,
and which will be purchased in the market, was 2 200 673 (2022: 2 557 731).
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Remuneration and performance continued
Malus and clawback
The preventative aim of this policy is to remove the incentive for an executive to intentionally manipulate financial results
or financial position or organisational information with the intention of financially benefiting from variable remuneration. These
provisions align the interests of executives with the long-term interests of the organisation as well as shareholders, and to ensure
that irresponsible behaviour is not rewarded.
With respect to malus, if the remuneration committee, in consultation with the board and/or any committee of the board,
believes that a trigger event has occurred, it has full discretion to reduce, in part or whole, unvested variable remuneration
(i.e. STIs and LTIs) before the end of the vesting or payment period. In the case of clawback, the remuneration committee,
in consultation with the board and/or any committee of the board, may implement clawback for the whole or portion of vested
variable remuneration in the event of a trigger event occurring over a period of three years from the date on which payment was
made of such vested variable remuneration. Trigger events include, but are not limited to:
› Material misstatement of financial results
› Misconduct, incompetence, fraud and dishonesty
› Negligence or material breach of obligations to the company
› Deliberate harm to the company’s reputation
› Material failure of risk management
Pay for performance link
The variable pay arrangements described above have various potential outcomes. These outcomes could be from zero
(minimum) to the expected level of performance outcomes (target) to the maximum potential variable pay outcomes (maximum).
In the illustrations presented alongside, it should be noted that:
› STI represents the cash component of short-term performance
› LTI represents the total award of performance vesting shares
Total remuneration potential for members of executive management for the year ended 30 September 2023
CEO (R’000)
The depiction below mirrors the potential remuneration of the outgoing CEO, expressed in annual terms.
Maximum
11 086 400
13 303 680
27 039 730
On-target
11 086 400
6 651 840
13 519 865
Minimum
11 086 400
GP
STI
LTI
CFO (R’000)
Maximum
7 194
8 633
17 546
On-target
7 194
4 316
8 773
Minimum
7 194
GP
STI
LTI
12
Members of the executive committee (average) (R’000)
Maximum
5 446
6 535
6 644
On-target
5 446
3 268
3 322
Minimum
5 446
GP
STI
LTI
12
Executive service contracts
Senior executives are employed full-time under standard agreements, with a notice period of three months and retirement age
of 63. We bind all senior executives by a restraint-of-trade agreement to protect Tiger Brands’ interests (including trade secrets,
confidential information and customer connections), and to prevent economic prejudice to Tiger Brands, including loss of clients
and goodwill. To the extent that executives have access to proprietary business insights and intellectual property, Tiger Brands
will enforce the agreement should they join a competitor. The restraint comprises a three-month notice period or three months’
special leave (paid as a three-month lump sum based on guaranteed package on termination).
Sign-on and specific retention payments
In exceptional circumstances (mainly for the recruitment and retention of critical and/or scarce talent), Tiger Brands will award
a sign-on/retention payment that will be subject to the following conditions:
› Employees should remain in the service of Tiger Brands as a permanent employee for an uninterrupted period of 24 months
from date of payment. Should the employee or Tiger Brands decide to terminate the employment relationship for any reason,
excluding those listed below, before the expiration of 24 months, the employee will be required to repay Tiger Brands the
full gross amount. There will be no pro rata refunds. Should Tiger Brands terminate the employment relationship because
of operational reasons (for example, retrenchment or redundancy) or ill health, or if termination occurs as a result of death,
the employee will not be required to repay Tiger Brands
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Remuneration and performance continued
Payments on termination of employment
Remuneration policy
component
Voluntary termination
(i.e. resignation)
Guaranteed package
Medical aid
Paid up to last day of
service
Benefit continues to last
day of service
Involuntary termination
(retrenchment, retirement, death)
Paid up to last day of service including notice period, where applicable.
Benefit continues up to last day of service. Employees who qualify for
post-retirement medical aid funding will continue to receive the
employer contribution with effect from their normal retirement date.
Retirement and risk
plans
Employer contributions paid until last day of service. Employee is entitled to the value of the
investment, but all risk benefits cease on termination of service.
Other benefits
Not applicable
Short-term incentives
No pro rata bonus paid
Long-term incentives
All unvested awards lapse
Severance package in respect of retrenchments – one or two weeks for
every completed year of service in terms of the relevant rules.
Pro rata STI payment (based on extent of achieving specified financial
and strategic targets for the period and a personal performance
agreement being in place at the date of exit).
Depending on the nature of the instrument and reasons for termination,
a participant may retain all units or a pro rata portion. Accelerated
vesting and settlement of retained units may apply in certain
circumstances.
External board appointments
Under a formal policy, an executive is limited to one substantive outside directorship. The chairman of the Tiger Brands’ board,
chairman of the nominations committee and chairman of the remuneration committee are required to authorise these
appointments based on a recommendation from the CEO. Other than in respect of their appointment to the boards of associate
companies, directors’ fees under this policy may be retained by the individual. Other than associate companies, Deepa Sita
serves on the board of Datatec Limited.
Non-executive directors
Fees and approval process
Non-executive directors are paid an annual retainer that reflects their overall contribution and input to the company, and not just
for attendance at board and committee meetings. Fees are reviewed annually, and increases are implemented in March after
approval at the relevant AGM.
Benchmarking is conducted on an annual basis to benchmark these fees against South African companies listed on the JSE
based on market capitalisation, turnover and total assets. As these are similar metrics to that of the benchmark group for
executive directors, it was decided that, from FY20, in line with King IV™ and in terms of the current requirements of the
organisation, a single comparator group be adopted for the non-executive directors’ and executive directors’ remuneration
benchmarking. The revised comparator group is detailed on
page 81.
Targeted remuneration for the 12-month period ending 28 February 2023 was based on the 65th percentile of the comparator
group, which is aligned with our internal anchor point. Non-resident, non-executive directors are paid a premium in comparison
to resident directors. The chairman does not receive any additional remuneration for participating in committees of the board.
Non-executive directors who perform services outside the scope of their ordinary duties will not receive additional remuneration.
Shareholder approval will be sought for increasing non-executive directors’ fees, including fees paid for attending special board
meetings. Details of proposed non-executive directors’ fees effective from 1 March 2023 appear in the notice of AGM
of shareholders to be held on Thursday, 22 February 2024. Details of non-executive directors’ fees paid in the review period
appear on
page 96.
Voting statement
This remuneration policy is subject to a non-binding advisory vote by shareholders at the upcoming AGM.
88
Section 3: Implementation report
In this section of the remuneration report, we explain the implementation of our remuneration policy, providing details of the
remuneration paid to our executive directors and members of the executive committee for the financial year ended
30 September 2023.
Salary adjustments
In 2022, the remuneration committee approved a 6,5% annual increase effective December 2022. This excludes the negotiated
increases for bargaining unit employees and targeted increases to reward exceptional performance, retain critical skills and
execute day-to-day internal mobility practices such as promotions, transfers and other deployments during the financial year.
2023 guaranteed package
The following increases to guaranteed packages were implemented in the reporting period for executive directors. New amounts
were effective as indicated below. Deepa Sita’s increase at the time reflected acknowledgement of performance, criticality of role
and skills and market position.
Executive directors
NP Doyle
DS Sita
1 Dec 2022 to
30 Nov 2023
1 Dec 2021 to
30 Nov 2022
% increase
R11 086 400
R7 194 000
R10 400 000
R6 600 000
6,6%
9,0%
Mutual separation
The board and Noel Doyle entered into a mutual separation agreement, which facilitated his amicable exit. His exit is subject
to various conditions, including restraint-of-trade conditions for a period of six (6) months after his formal termination, which
is March 2024.
The financial aspects of the mutual separation agreement include a severance payment equal to two weeks per year’s service,
three months’ contractual notice pay, a payment in lieu of restraint of trade equal to six months, and annual leave accrued
at termination date. The financial details of the separation payments will be fully disclosed in the FY24 remuneration report.
Outstanding long-term incentives shall be treated in terms of the rules of the scheme. Unvested share awards shall be reduced
pro rata in relation to Noel’s service period relative to the award period, and shares shall vest according to the existing structure.
There shall be no accelerated vesting.
Incoming CEO
The incoming CEO’s total reward offer is in line with the market, and in accordance with Tiger Brands’ policy and practices.
Because Tjaart Kruger is engaged on a fixed-term basis, some elements of his compensation were specifically agreed upon
to avoid conflict with current policies and regulations, and to drive business outcomes required by the board in relation to the
period of service.
Element
Multiple
Salary
STI
End-of-term conditional award
(allocation value = 100%
of guaranteed package)
N/A
On-target 60%; max 120%
On-target 100%; max 200%
On-target amount
R11 000 000
R6 600 000
R22 550 000
(Face value over the
26-month term)
The conditional award is a vehicle that aligns with shareholder interests, in terms of which conditional rights to shares in Tiger
Brands Limited are awarded to Tjaart Kruger. This award is different to performance vesting shares awarded to executive
management, given that the measurement period is equal to the length of the contract (two years), as opposed to the three-year
vesting criterion for performance vesting shares. This is a focused and bespoke plan aligned with the strategic objective of fixing
the fundamentals and creating value for shareholders. The award will vest at the end of the contract period (31 December 2025)
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Remuneration and performance continued
subject to the achievement of performance outcomes as set out in the table below over the contract period and will be settled
using shares purchased in the market by the company. A one-year lock-in period will apply from the date of issue until
31 December 2026. In addition, Tjaart has agreed to purchase Tiger Brands shares with his own funds, in the open market,
by the end of March 2024.
Incoming CEO performance conditions
Performance condition
Weighting
Threshold
(25% vesting)
Target
(100% vesting)
Stretch
(200% vesting)
Operating margin
ROIC
Cash flow (cash conversion)
40%
40%
20%
90% of target
WACC + 1%
86% of target
100%
119% of target
WACC + 3%
WACC + 5%
100%
143% of target
Due to the non-achievement of the group EBIT threshold, the EBIT disqualifier is triggered, and therefore disqualifies the group
portion of the STI weighting.
Individual performance factor
The individual performance factor (20% overall weighting) for executive directors is weighted according to the table below. The
results for FY23 were as follows:
NP DOYLE
DS SITA
Not
met
Partially
met
Met Exceeded
%
achievement
of target
Not
met
Partially
met
Met Exceeded
%
achievement
of target
Key
performance
indicators
Partially met
2023 short-term incentive outcomes
As indicated in the policy section, the STI for executive directors is based on the combination of a group performance factor and
individual performance component.
Met
Partially met
Not met
Final outcomes for 2023
Group performance factor
The group performance factor (80% overall weighting) for executive directors is weighted according to the table below. Results
for FY23 were as follows:
Key
performance
indicator
weighting
Threshold
score
= 50%
Target
score
= 100%
Stretch
score
= 200%
Achievement
Actual
result
Weighted
result
5%
7,5%
5%
40%
5%
92%
96%
100%
150%
100%
104%
Net sales delivery
90%
100%
Pipeline value
93%
96%
78%
100%
100%
100%
120%
114%
107%
144%
<0%
93%
74%
57%
90%
71%
0%
0%
0%
0%
0%
0%
Strategic
objective
Growth
Strategic
objective
weighting
Key
performance
indicator
57,5% Sales volume
growth
Brand health
Innovation
Efficiency
10% Overall
EBIT
equipment
effectiveness
(factor in waste)
Continuous
improvement
Actual
group
performance
factor % x
weighting
Actual
personal
performance
factor % x
weighting
GP#
On-target %
(80%)##
(20%)###
2023 STI
(rand)
2022 STI
(rand)
11 086 400 x
7 194 000 x
60% x
60% x
0
0
+
+
0
0
0
0
6 219 647
4 184 683
Name
NP Doyle
DS Sita
Annual guaranteed package in rand as at 30 September 2023
#
## Actual group performance factor determined as 0% x 80% = 0%
### Based on the non-achievement of group EBIT minimum target, the executives are disqualified from STI, hence the personal performance factor is considered
0 for calculation purposes
2023 long-term incentives
Awards made during FY23
In FY23, performance shares were awarded to executive directors, executive committee members, senior management, and
middle management.
Long-term incentive awards made during the year to executive directors are set out below:
5%
89%
100%
122%
117%
5,4%
Long-term incentive awards to executive directors for FY23
People and
sustainability
32,5% Quality
10% Reduction in complaints year-on-year
121%
17,5%
Safety (LTIFR)
10%
Carbon
emissions
Talent pipeline
5%
7,5%
100%
86%
Reduction in lost-time
injuries year-on-year
96%
67%
100%
100%
Time to fill
100%
Vacancy fill %
100%
82%
89%
129%
113%
150%
129%
111%
116%
2,0%
2%
0%
113%
5,6%
110%
7,1%
59%
0%
› The targeted percentages for “threshold”, “target” and “stretch”, as set out above per KPI, represent the targeted percentage
Final group performance factor
EBIT disqualifier
achievement of the underlying budgeted amounts
› Linear vesting will apply if the actual result falls between “threshold” and “target” or between “target” and “stretch”
90
Name
NP Doyle
DS Sita
Performance shares
LTI personal
performance
multiplier*
GP
Award %
Number
Face value#
Expected
value
150% 11 086 400
150%
7 194 000
81,3%
81,3%
64 530
13 520 326 16 630 000
41 880
8 774 698
10 792 879
*
#
The personal performance multiplier is used to modify the standard quantum of performance shares and restricted shares based on an individual’s personal
sustained performance and potential. This is a percentage ranging from 0% to 150%
Allocated on 15 December 2022 at VWAP of R209,52
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Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business
Remuneration and performance continued
LTI awards vesting or with a performance period ending in 2023
The outcome for awards due to vest in FY23, and whose performance conditions ended by 30 September 2022, are shown
below. This applies to all eligible participants.
Payments for termination of office
No additional payments were made for executives terminating office, save for the payments to be made in FY24 disclosed
in relation to Noel Doyle on
page 89 of this report.
Performance value shares granted in FY20
Weighting
Threshold
(25% vesting)
Target
(100%
vesting)
Stretch
(200%
vesting)
Actual
achievement
Performance
outcome
% vesting
Targets
Headline earnings per
share (HEPS)
Return on invested
capital (ROIC)
50%
CPI + GDP CPI + GDP + 2% CPI + GDP + 4%
50% WACC + 1%
WACC + 2%
WACC + 5%
Total
Met
Partially met
Not met
Share appreciation rights granted in FY18 – third tranche
Targets
Weighting
Minimum
target
Actual
achievement
Headline earnings per share (HEPS)*
100% 12 296,70 cents
Total
0%
* Cumulative HEPS over the five-year vesting period
Met
Partially met
Not met
Share appreciation rights granted in FY19 – second tranche
0%
0%
0%
Performance
outcome
% vesting
0%
0%
Targets
Headline earnings per share (HEPS)*
Return on invested capital (ROIC)
Total
* Cumulative HEPS over the four-year vesting period
Met
Partially met
Not met
Current minimum shareholding summary
Weighting
Minimum
target
Actual
achievement
Performance
outcome
% vesting
100% 7 056,80 cents
50%
13,76%
0%
0%
0%
Name
NP Doyle
Date of
engagement
Number
of shares
held
GP*
Original
value of
shares
held
Current
value of
shares
held**
Original
value as %
of GP
1 July 2012 R11 086 400
5 December
22 775 R5 769 933 R3 494 824
CXO1
2016 R4 361 094
7 373 R1 638 700 R1 131 387
* GP as at 30 September 2023
** Value calculated with reference to the closing price of a Tiger Brands share as at 30 September 2023, i.e. R153,45
52%
38%
Years
remaining
to meet
target
0
2
Target
% of GP
200%
100%
Compliance with remuneration policy
There were no deviations from the remuneration policy in the financial year.
Single total figure of remuneration
The following tables disclose total remuneration received and receivable by executive directors and executive management for
the period 1 October 2022 to 30 September 2023.
Executive directors
Remuneration element
Basic salary
Retirement funding
Other benefits
Guaranteed package
Short-term incentive
FY21 long-term
performance shares*
Total remuneration
NP DOYLE
FY23
(R’000)
FY22
(R’000)
9 427
1 545
–
10 972
–
10 364
21 336
8 878
1 455
–
10 333
6 219
–
16 552
DS SITA
FY23
(R’000)
FY22
(R’000)
6 527
330
251
7 108
–
5 479
12 587
5 938
330
245
6 513
4 184
–
10 697
%
6,2
6,2
–
6,2
<0
n/a
28,9
%
9,9
–
2,4
9,6
<0
n/a
17,7
*
The FY21 performance shares awarded on 4 December 2020 will vest on 4 December 2023. The shares will vest at a multiple of 112,7%. The above values are
indicative and based on the Tiger Brands closing share price on 29 September 2023 (R153,54)
Member of executive committee
Key
CXO1
CXO2
CXO3
CXO4
CXO6
CXO8
CXO11
CXO14
CXO15
Total
FY23
(R’000)
6 371#
5 486#
10 371#
6 650
9 685#
6 865#
4 577**
5 092
6 728
61 825
FY22
(R’000)
8 605*
6 581*
11 551*
12 671*
13 774*
10 770*
7 399*
71 351
Notes:
CXO14 appointed 1 December 2022
CXO11 appointed 1 January 2023
*
**
#
Includes retention payments made in December 2021 of R24,1 million as well as FY22 STI payable in December 2022 of R36,1 million
Includes sign-on bonus
Includes the FY21 performance shares awarded on 4 December 2020 that will vest on 4 December 2023, totalling R11,9 million
92
93
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business
Remuneration and performance continued
Number and value of LTI share awards
Disclosure of the quantum and value of awards for the CEO and CFO outstanding at the beginning and end of the reporting
period, as well as new awards made in the period, are provided in the table on
settled during the reporting period indicated in the value-based tables below.
page 91, with the cash value of awards
Name and awards
Award date
Vesting date
NP Doyle
FY20 performance shares
FY21 performance shares
FY22 performance shares
FY23 performance shares
FY18 SARs
FY19 SARs
FY19 SARs
Total
07/09/2020
04/12/2020
15/12/2021
19/12/2022
11/12/2017
06/12/2018
06/12/2018
07/09/2023
04/12/2023
15/12/2024
19/12/2025
11/12/2022
06/12/2022
06/12/2023
Grant
price
(ZAR)
–
–
–
–
385,29
254,79
254,79
Opening
number
65 880
59 930
69 700
–
16 433
18 896
18 897
249 736
Granted
during
the year
–
–
–
64 530
–
–
–
64 530
Forfeited
during
the year
Performance
condition
achieved
Settled
during
the year
Closing
number
Face value
at award
(ZAR)
Cash
received
(ZAR)
Value of
shares
acquired
(ZAR)
Closing fair
value vesting
(ZAR)*
65 880
–
–
–
16 433
18 896
–
101 209
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
59 930
69 700
64 530
–
–
18 897
–
12 195 755
12 683 309
13 520 326
–
–
4 814 767
213 057
43 214 157
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
9 053 625
9 996 374
8 787 050
–
–
17 952
27 855 001
Value of
shares
acquired
(ZAR)
Closing fair
value vesting
(ZAR)
Name and awards
Award date
Vesting date
Grant
price
(ZAR)
Opening
number
Granted
during
the year
Forfeited
during
the year
Performance
condition
achieved
Settled
during
the year
Closing
number
Face value
at award
(ZAR)
Cash
received
(ZAR)
DS Sita
FY21 performance shares
FY22 performance shares
FY23 performance shares
FY22 restricted shares
Total
04/12/2020
15/12/2021
19/12/2022
04/12/2023
15/12/2024
19/12/2025
15/12/2021
15/12/2024
–
–
–
–
31 680
9 220
–
72 540
–
–
41 880
–
113 440
41 880
Interests of executive directors in B-BBEE schemes
DS Sita was awarded shares in terms of the Black Managers Trust Scheme for the year ended 30 September 2021:
Name and awards
Award date
Vesting date
Opening
number
Granted
during
the year
Forfeited
during
the year
DS Sita
Tiger Brands share allocation
31/01/2021
Adcock Ingram share allocation***
31/01/2021
Oceana share allocation***
31/01/2021
Total
31/01/2024
31/01/2025
31/01/2026
31/01/2024
31/01/2025
31/01/2026
31/01/2024
31/01/2025
31/01/2026
–
–
–
–
–
–
–
–
–
–
2 333
2 333
2 334
1 983
1 983
1 984
603
604
604
14 761
–
–
–
–
–
–
–
–
–
–
* Calculated with reference to the market value of an allocated share (less the amount of the capital contribution) as at the date of the award
** Calculated with reference to the market value of an allocated share (less the amount of the capital contribution) as at year end (30 September 2023)
***
In addition to the award of the Tiger Brands shares, the executive was also awarded Adcock Ingram and Oceana shares (as a consequence of the unbundling
by Tiger Brands of its interests in Adcock Ingram and Oceana, the Tiger Brands Black Managers Trust – as Tiger Brands shareholder – also became a
shareholder of shares in Adcock Ingram and Oceana). Participants in the trust are, consequently, also awarded shares in these two companies when awarded
Tiger Brands shares
94
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
31 680
9 220
41 880
72 540
6 446 880
1 677 763
8 774 698
13 200 104
155 320
30 099 445
–
–
–
–
–
–
–
–
4 785 898
1 322 332
5 702 800
10 403 687
22 214 717
Settled
during
the year
Closing
number
Face value
at award*
(ZAR)
Cash
received
(ZAR)
Value of
shares
acquired
(ZAR)
Closing fair
value
vesting**
(ZAR)
–
–
–
–
–
–
–
–
–
–
2 333
2 333
2 334
1 983
1 983
1 984
603
604
604
334 995
334 995
335 139
63 278
63 278
63 309
30 554
30 605
30 605
14 761
1 286 758
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
263 932
263 932
264 045
92 031
92 031
92 077
38 411
38 475
38 475
1 183 409
95
Tiger Brands Limited Integrated annual report 2023www.tigerbrands.comOverviewGovernanceOur performanceOur strategyOur operating contextOur business Remuneration and performance continued
Company information
Tiger Brands Limited
(Tiger Brands or the company)
(Incorporated in the Republic of South Africa)
Share code: TBS
ISIN: ZAE000071080
INDEPENDENT NON-EXECUTIVE DIRECTORS
GJ Fraser-Moleketi (chairman), MO Ajukwu,
FNJ Braeken, GA Klintworth, TE Mashilwane,
M Sello, LA Swartz, OM Weber, DG Wilson
NON-EXECUTIVE DIRECTOR
S Sithole
EXECUTIVE DIRECTORS
TN Kruger (chief executive officer)
DS Sita (chief financial officer)
COMPANY SECRETARY
JK Monaisa
REGISTERED OFFICE
3010 Winnie Mandela Drive
Bryanston
Sandton
POSTAL ADDRESS
PO Box 78056, Sandton, 2146
Telephone: +27 11 840 4000
AUDITORS
Deloitte & Touche
PRINCIPAL BANKER
Rand Merchant Bank
SPONSOR
JP Morgan Equities South Africa Proprietary Limited
SOUTH AFRICAN SHARE TRANSFER SECRETARIES
Computershare Investor Services
Proprietary Limited
Rosebank Towers, 15 Biermann Avenue
Rosebank, 2196
Private Bag X9000
Saxonwold, 2132
INVESTOR RELATIONS
Nikki Catrakilis-Wagner
Erene Kairuz
Telephone: +27 11 840 4000
WEBSITE ADDRESS
www.tigerbrands.com
CONTACT DETAILS
Companysecretary@tigerbrands.com
Investorrelations@tigerbrands.com
Consumer helpline: 0860 005342
Non-executive directors’ remuneration 2023
The non-executive directors’ remuneration paid (excluding VAT) for the year ended 30 September 2022 is disclosed below:
Committee
MO Ajukwu FNJ Braeken MJ Bowman CH Fernandez
GJ Fraser-
Moleketi
GA
Klintworth
Notes
Board fees
Audit committee fees
Remuneration committee,
nomination and governance
committee fees
Social, ethics and transformation
committee fees
Risk and sustainability committee
fees
Investment committee fees
Extraordinary fees in respect
of special board meeting
Total FY23
Total FY22
R1 071 973
4
R1 071 973
R478 775
5
1
R466 075 R2 225 830 R1 071 973
R369 255
R260 590
R379 514
R379 514
R86 269
R165 006
R49 393
R260 590
R379 514
R113 267
R113 267
R1 825 344
R2 129 798
R49 246
R49 246
R113 267
R1 098 975 R2 275 076 R1 825 344
R1 563 468
R992 006
R340 448
R990 714 R2 143 370 R1 505 804
Notes:
1.
CH Fernandez resigned 10 October 2023
S Sithole appointed 1 April 2023
LA Swartz appointed 1 June 2022
FNJ Braeken appointed 1 April 2022
2.
3.
4.
5. MJ Bowman retired 16 February 2022
6. M Makanjee retired 31 December 2021
Committee
Notes
Board fees
Audit committee fees
Remuneration committee,
nomination and governance
committee fees
Social, ethics and
transformation committee fees
Risk and sustainability
committee fees
Investment committee fees
Extraordinary fees in respect
of special board meeting
Total FY23
Total FY22
M
Makanjee
6
TE
Mashilwane
M Sello
S Sithole
LA Swartz OM Weber DG Wilson
R562 018
R466 075
R208 163
2
R239 825
3
R466 075 R1 071 973
R466 075
R208 163
R122 982
R63 282
R122 982
R282 859
R263 371
R217 330
R113 300
R323 420
R44 639
R17 637
R379 514
R113 604
R44 639
R49 246
R49 246
R25 340
R49 246
R113 267
R49 246
R996 215 R1 160 204
R346 084
R638 303 R1 961 216 R1 031 494
R188 190
R732 962 R1 080 840
R142 975 R1 628 110
R874 546
Notes:
1.
CH Fernandez resigned 10 October 2023
S Sithole appointed 1 April 2023
LA Swartz appointed 1 June 2022
FNJ Braeken appointed 1 April 2022
2.
3.
4.
5. MJ Bowman retired 16 February 2022
6. M Makanjee retired 31 December 2021
96
Forward-looking information
This report contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations at the time of
finalising the report. Actual results may differ materially from these expectations if known and unknown risks or uncertainties affect
the business, or if estimates or assumptions prove inaccurate. Tiger Brands cannot guarantee that any forward-looking statement
will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The company assumes
no obligation to update or revise any forward-looking statements, even if new information becomes available as a result of future
events or for any other reason, save as required by legislation or regulation.
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