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Tiger Tales Second Issue 2011

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Deli Foods and UAC staff embrace Tiger Brands

Contentsfeature 02 0607 08 09An inside look into Tiger Brands in Nigeria Quarterly diary

At Tiger Brands we are passionate about our:peopleTiger Tales snippets: news in brief about staff activities Tiger Brands appoints new Chief Financial Officer School of Magic 2011 programme kicks off Beverages run J.P. Morgan Challenge Beacons Biggest Losers contest Fanie van Wyk receives recognition for 30 years service Paarl Shared Service Centre Cricket team host fun match Tiger Trekkers: Kodak moments from staff holiday travels The experience of a lifetime Enterprise Cape wins award On the African expansion trail with Tiger Brands International Tiger Brands delivers interim results presentation ABCs of the newly introduced Consumer Protection Act The debate about genetically modified foods Modjadjikloof factory donates computers to Limpopo school Beverages team organises Easter charity drive for Johannesburg area orphanages Beacon Development Centre staff donate food hampers to orphans Tiger Brands Medical Scheme explains the importance of having a medical aid policy Ethics line contact info

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Tiger Brands snowboarding enthusiast

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Ingrams supports blanket initiative

consumers world

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Editorial team: Roselyn Seripe, Julie Hayman, Samantha Brown Editorial Disclaimer Tiger Tales is jointly published by Tiger Brands Group Communication and Bastion Graphics. All reasonable precautions have been taken to ensure the accuracy of information. Content is the responsibility of the editorial team and does not represent the views of Tiger Brands. The Tiger Tales editorial team, management of Bastion Graphics, editorial contributors, and Tiger Brands cannot accept responsibility for any damages or inconveniences of any kind, from information published in this magazine. All material contained herein is the express copyright of Tiger Brands.

Deli Foods staff celebrate joining Tiger Brands.

23 cover

Computers for Limpopo school


Contributors: Neil Brimacombe, Tracy Brookes, Stella Fenster, David Kamau, Solwazi Khumalo, Andre Koekemoer, Itzik Levi, Thuli Mngomezulu, Roxie Naicker, Donald Phosa, Weldette Prinsloo, John Stevens


Tiger Brands enters Nigeria largest market in AfricaTiger Brands is extremely excited by the announcement of its JV partnership with UAC of Nigeria and the acquisition of Deli Foods Nigeria. Nigeria is the largest market within the African continent and is a signicant step towards our vision of becoming the leading FMCG company in Africa.

UAC FoodsIn May UAC of Nigeria Plc (UACN) and Tiger Brands Limited of South Africa signed an agreement on their strategic partnership regarding UAC Foods Limited. In the joint venture, UACN will hold a 51% stake and Tiger Brands will hold 49%. The two companies will exercise joint management control in the venture. The partnership consists of UACNs food and dairy operations as well as the SWAN water business. These operations are custodians to Nigerias heritage brands such as Gala (sausage rolls), Supreme (ice-cream) and SWAN (bottled spring water). The Gala and SWAN brands are market leaders in their category, having market 34% and 7% market share respectively. The transaction was approved by UAC shareholders and the regulatory authorities in Nigeria and aims to strengthen the packaged snacks, dairies and bottled water categories of UACs portfolio of brands, and it provides a joint opportunity to grow in one of Africas most important markets. Speaking on the deal, the Group Managing Director/CEO of UAC of Nigeria Plc, Mr Larry Ettah said: The strategic merits of this alliance ensures best immediate and long term value for UACN shareholders and the company. It preserves our strong iconic brands, category focus and provides strong delivery capability for growth and innovation. Our customers, employees and other stakeholders will benet from the enlarged reach, size and competitiveness of the new UAC Foods Limited. We are proud to have a global partner with such pedigree as Tiger Brands Limited.

Gala Sausage Roll a top brandOn 26 June the crme-de-la-crme of Nigerian society gathered in Lagos, Nigeria for the 2011 Top Celebrities Brand Awards. Gala Sausage Roll (made by UAC Foods) won numerous awards, most notably the Super Brands Award and the City People Magazine Long Standing Brand Award. The awards are dedicated to all the staff and management of UAC Foods Limited and every loyal customer of Gala Sausage Rolls.



UAC FoodsUAC Foods is a joint venture between UACN Plc and Tiger Brands.UAC Foods is a subsidiary of UAC Nigeria, which was established in 1879. UAC Foods is comprised of three main business units Dairy, Drinks and Foods. The brands of UAC Foods span a broad spectrum of packaged food categories in Nigeria with a focus on: Diary (ice cream, yogurt, ice lollies and milk beverages); Beverages (water, soft drinks and fruit juices); Snacks (sausage rolls, sweet and savoury snacks), as well as oils and fats. There are two factories located in Lagos, one for Snacks and one for Dairy. (The SWAN Water factory is located in Kerang, Plateau State). UAC Foods Ltd has a total of 1 272 employees.

NewsashCongratulations to Tawanda Mushuku and Paul Okwudilichukwu Okeke, who were recently appointed as managing director and nance director, respectively, of UAC Foods Limited, in Nigeria. The appointments were effective from Monday 6 June 2011.


Tiger Brands enters Nigeria largest market in Africa(continued)Deli FoodsTiger Brands acquisition of Deli Foods represents an opportunity for the company to become a leading player in the biscuit market in Nigeria.The Nigerian biscuit market has grown at an average of 10 to 20% per annum since 2003 when the Federal Government placed a ban on biscuit imports into the country, compared to 1,3% to 3% percent growth recorded before the ban. The biscuit market in Nigeria is highly competitive. There are currently 16 biscuit manufacturers operating in the country. The total biscuit consumption is estimated between 450 000 to 500 000 metric tonnes annually (1 metric tonne = 1 000 kilograms). The biscuit market is valued at US$406 million and industry growth is projected at 14% by 2014. Deli Foods sees the youth as the main growth area, since an estimated 80% of young people consume biscuits in Nigeria. The youth are 41% of Nigerias 155 million population. Since Tiger Brands announced its acquisition of Deli Foods in November, the HR and other business unit teams from both companies have been working around the clock to integrate systems and get the companies to working at an optimal level. Deli Foods is based in Lagos, Nigerias biggest city. The company started operations in 1998 with just a single oven and today has four ovens and a factory and warehouse on 35 000 square metres of land, with a built area of 20 000 square metres. It is ranked sixth among the local biscuit manufacturers, and has about 6% market share. The companys distribution network covers all of Nigerias states (see distribution map). Employees are excited about being part of Tiger Brands. The venture is a fantastic opportunity for people development and career progression for employees. Long term its a great business decision, said Ose Okpeku, head of administration and human resources at Deli Foods. Were delighted to be part of the Tiger Brands family. Were looking forward to learning from Tiger Brands eight decades of multi-faceted business experience. We stand committed to the vision to become the most admired FMCG company in the emerging markets, says N.R. Suresh, factory manager at Deli Foods.


featureNIGERIACapital Ofcial language(s)

Abuja English, recognised national languages Hausa, Igbo. Yoruba, Fulani

Government system Federal Republic of Nigeria Area Population Currency Key industries Major FMCG

Total 923 768 km2 (32nd in the world) 152 217 341 (2010 estimate) Naira N (NGN)R1 = 22 Naira

Crude oil, coal, rubber products, wood, textiles, food products, footwear, steel Nestle, Heineken NV, Coca-Cola, Guinness, British-AmericanTobacco (BAT), Johnson & Johnson

Distribution map


Major SA Companies Tiger Brands, Standard Bank, MTN, Shoprite, in Nigeria

DSTV/Multichoice, Group Five, Nampak

Sources: and CIA Factbook

Deli FoodsDeli Foods Limited engages in the manufacturing and marketing of biscuits.The company was incorporated in 1998 and is based in Lagos, Nigeria. The company makes 16 different varieties of biscuits including wafers, sweet and semisweet biscuits. The top ve brands are Cabin, Coaster, Orange Star, Cream Crackers, and Nada Wafers. It also makes a range of McVities Biscuits under license for the British company, United Biscuits. Deli Foods employs 1 370 employees.Source: Businessweek/Bloomberg; Tiger Brands


Dates to diariseJune16Youth Day (RSA) In remembrance of the Soweto student uprisings of 1976.



World Population Day Established by the Governing Council of the United Nations Development Programme in 1989. It is inspired by Five Billion Day on July 11, 1987, when the worlds population reached ve billion people.


9National Womens Day (RSA) Commemorates the national march of women in 1956 to petition against a law requiring African persons to carry the pass, special identication document which restricted Africans freedom of movement during apartheid.

30Djoulde Soumae, Eid-al-Fir (End of Ramadan) Ramadan, the greatest religious observance in Islam, is an annual m

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