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Operational review
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46
Tiger Brands Limited integrated annual report
2015
Key drivers behind this performance were continued
investment in our brands through media support, trade and
consumer activations, and a more efficient sales force
calling on over 27 500 stores. As a result, retail coverage
improved from 60% to 70% and customer service levels
to 97%.
The company continued to aggressively pursue its regional
export strategy. Key export markets include Gabon, Chad,
Congo Brazzaville and Equatorial Guinea, representing
over 27% of turnover. Plans are in place to expand the
regional footprint.
Innovation is an important element in driving business
performance, with new products contributing 6,5% to net
sales in the review period from 5% in 2014. A strong
innovation pipeline resulted in the launch of seven new
products in 2015, and five launches planned for 2016.
Market shares remain high and Chococam is the market
leader in four of the five categories in which it competes.
The company continues to invest in capacity enhancements
in hard candy and spreads, facility upgrades and
continuous improvement projects such as productivity and
customer service to support its growth.
Ethiopia: East Africa Tiger Brands Industries (51% held)
Ethiopia Tiger Brands Industries manufactures home and
personal care products and delivered a solid top-line
performance, reflecting the focused execution of its strategy
to fix, optimise and grow. Strong growth in the core
categories of home care and personal care was driven by
successfully relaunching laundry soaps and new marketing
activity for detergent powders. The company’s core brands,
which include Solar, Crown and Peacock, continue to
strengthen their positions in the Ethiopian market.
Once-off stock write-downs in its powdered beverage and
supplementary foods businesses (under a world food
programme to address nutritional deficiencies in the country)
affected business performance in the first half. Foreign
currency shortages, customs-clearing inefficiencies and
ongoing customer liquidity issues remain key challenges that
are continuously addressed by management, with group
support where possible.
Overall, prospects for this business are positive and will be
supported by investing in capacity, new product categories,
route-to-market and its core brands to enhance market
penetration and capitalise on economic growth
opportunities in Ethiopia.
Exports and International
continued