Tiger Brands eyes expansion into North Africa

by Eric Schroeder
Share This:
Search for similar articles by keyword: [Tiger Brands]

Tiger Brands Facility
Photo: Tiger Brands
 
JOHANNESBURG, SOUTH AFRICA — A listeriosis infection crisis at a company plant last year has garnered much attention at Tiger Brands Ltd. in recent months, but the company hasn’t abandoned its plans for expansion outside its home market of South Africa, according to a report from Bloomberg.

In an interview with Bloomberg, Lawrence Mac Dougall, chief executive officer of Tiger Brands, told the newspaper that the company is still developing its “rest-of-Africa” strategy, which may include expanding into North African nations.

About 90% of the company’s sales over the past six months were from South Africa. Approximately 42% of revenues came from grains, with 38% coming from consumer brands/foods, 12% from exports and international, and 8% from home, personal care and baby.

Tiger Brands CEO MacDougall
Lawrence Mac Dougall, chief executive officer of Tiger Brands

“Obviously sub-Sahara is easier to play because it’s closer, but our strategy is looking at the total Africa,” Mac Dougall said. “You have to look where the trading zones have been constructed.”

He said Tiger Brands intends to use an “on-the ground, bottom-up” model, which would revolve around the company making sure it markets and supports the products that are shipped from South Africa.

“We are first looking at the country lens, then the category lens,” Mac Dougall told Bloomberg. “What’s the size of the category, does it play to our core business and what is our ability to win?”

Tiger Brands posted profit before tax during its first six months ended March 31 of R1.9 billion, down 18% from the same period a year ago, primarily reflecting costs associated with the company’s recall of Value Added Meat Products (VAMP).

Total sales for the company totaled R15.7 billion, down 4.4% from R16.4 billion in the same period last year.

In the company’s Grains division, meanwhile, operating income increased to R1.047 billion from R1.020 billion, while sales eased to R6.594 billion from R6.909 billion.

Partners