SOUTH AFRICA – South African food manufacturing giant, Tiger Brands, has expanded its offerings with launch of new products.
The food processor has introduced a new Black Cat spread comprised of a combination of chocolate and peanut butter.
As part of its new innovative offering, Tiger Brands has expanded its KOO brand portfolio with launch of a convenient diced beetroot variety.
The company has further spruced up its Jungle’s cereal bars with low sugar options.
The JSE listed entity has highlighted that new product innovations would add flavour to its portfolio.
The innovations targeted areas that have become critical drivers for consumer buying habits including value, health and nutrition, and the growing trend to snack, reports IOL.
“We all need a little change every now and then when it comes to our daily menu. More options and loads more taste. But we also need the perfect combination of more value for less, added wellbeing and not forgetting moments of indulgence.
“Our new and exciting product innovations address all these expectations without compromising on quality, and even enhancing it,” said Becky Opdyke, Chief Marketing Officer, Tiger Brands.
Civil unrest, product recall eats into Tiger Brands earnings
In its full year ended September 2021, the company’s revenue from continuing operations, excluding the product recall and civil unrest, increased by 5% to R31.2 billion (US$1.98 billion), underpinned by price inflation of 7%, which was partially offset by an overall volume decrease of 2%.
Tiger Brands had announced previously that a number of its sites in KZN had been affected by acts of looting and vandalism, resulting in damage to the Rice and Snacks & Treats operations.
This incident was shortly followed by the recall of 20 million KOO and Hugo’s canned vegetable products due to potential defects in the cans.
As a result of the costs related to the product recall amounting to R308 million (US$19.5m) and civil unrest at R85 million (US$5.4m), operating income from continuing operations declined to R2.2 billion (US$139m) from R2.5 billion (US$158.7m) the previous year.
Domestic revenue for the period under review increased by 5% to R27.6 billion (US$1.72 billion), resulting from price inflation of 8%, less the impact of overall volume declines of 3%.
Meanwhile, total revenue for the Exports and International businesses increased by 7% to R3.6 billion (US$224m).
This was primarily attributable to a strong start to the year as trade resumed in Nigeria following resolution of the trademark dispute with a former distributor.
The second half, however, proved challenging for Exports, the Deciduous Fruit business as well as our operation in Cameroon.
Operating income for the year reduced by 7% to R96 million (US$5.98m) as a result of increased losses in Deciduous Fruit.
The second half performance of the Exports segment was negatively affected by low levels of demand, while border congestion impacted sales into Mozambique.
Operating income of R71 million (US$4.4m) reflects the improved performance in the first half, which was partly offset by the impact of industrial action at the Davita facility (powdered soft drinks and seasoning) during the third quarter.
Meanwhile, Chococam, its Cameroon based operations recorded an exceptional milestone this year with revenue exceeding R1.0 billion (US$62m).
This was driven primarily by strong volume growth across all segments, underpinned by successful innovation, optimal pricing and improved distribution to neighbouring countries.
Operating income increased by 16% in rand terms to R172 million (US$10.72m). This was assisted by improved efficiencies and lower conversion costs.