tigertales
Deli Foods and UAC staff
embrace Tiger Brands
www.tigerbrands.com
1
Tiger Brand’s snowboarding enthusiast1102 An inside look into Tiger Brands in Nigeria
06 Quarterly diary
feature
Contents
At Tiger Brands we are passionate about our:
21
23cover
07 Tiger Tales snippets: news in brief about staff activities
08 Tiger Brands appoints new Chief Financial Offi cer
School of Magic 2011 programme kicks off
09 Beverages run J.P. Morgan Challenge
Beacon’s ‘Biggest Losers’ contest
Fanie van Wyk receives recognition for 30 years service
Paarl Shared Service Centre Cricket team host fun match
10 Tiger Trekkers: Kodak moments from staff holiday travels
12 The experience of a lifetime
Enterprise Cape wins award
people
14 On the African expansion trail with Tiger Brands
International
17 Tiger Brands delivers interim results presentation
performance
19 ABCs of the newly introduced Consumer Protection Act
20 The debate about genetically modifi ed foodsconsumers
23 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
24 Tiger Brands Medical Scheme explains the importance
of having a medical aid policy
world
25 Ethics line contact infointegrity tigertales
Deli Foods staff celebrate joining
Tiger Brands.
Ingram’s supports blanket initiative
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
Editorial team: Roselyn Seripe, Julie Hayman, Samantha Brown
Editorial DisclaimerTiger 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.
22
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 UACN’s food and
dairy operations as well as the SWAN water
business. These operations are custodians to
Nigeria’s 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
UAC’s portfolio of brands, and it provides a joint
opportunity to grow in one of Africa’s 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 benefi t 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.’’
Tiger 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
signifi cant step towards our vision of becoming the leading FMCG company in Africa.
Tiger Brands enters Nigeria – largest market in Africa
Gala Sausage Roll – a top brandOn 26 June the crème-de-la-crème 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.
3
feature
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.
3
Newsfl ashCongratulations to Tawanda Mushuku and Paul
Okwudilichukwu Okeke, who were recently appointed
as managing director and fi 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 Foods
Tiger 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 Nigeria’s 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, Nigeria’s 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 company’s distribution network covers all of
Nigeria’s 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 it’s a great
business decision,” said Ose Okpeku, head of
administration and human resources at Deli Foods.
“We’re delighted to be part of the Tiger Brands
family. We’re 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.
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feature
5
© Sources: www.wikipedia.com and CIA Factbook www.cia.gov
Distribution map
NIGERIA
Capital Abuja
Offi cial language(s) English, recognised national
languages Hausa, Igbo. Yoruba, Fulani
Government system Federal Republic of Nigeria
Area Total 923 768 km2 (32nd in the world)
Population 152 217 341 (2010 estimate)
Currency Naira N (NGN)
R1 = 22 Naira
Key industries Crude oil, coal, rubber products, wood,
textiles, food products, footwear, steel
Major FMCG Nestle, Heineken NV, Coca-Cola, Guinness,
companies British-AmericanTobacco (BAT),
Johnson & Johnson
Major SA Companies Tiger Brands, Standard Bank, MTN, Shoprite,
in Nigeria DSTV/Multichoice, Group Five, Nampak
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 semi-
sweet biscuits. The top fi 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
6
Dates to diarise
June
August
September
9
11 24
16
30National Women’s Day (RSA)
Commemorates the national
march of women in 1956 to
petition against a law requiring
African persons to carry the
“pass”, special identifi cation
document which restricted
Africans’ freedom of movement
during apartheid.
Heritage Day (RSA)
Celebrates cultural heritage and
diversity of all South Africans’
beliefs and traditions.
Ethiopian New Year
Enkutatash is the fi rst day of the
New Year in Ethiopia. It occurs
on Meskerem 1 on the Ethiopian
calendar, which is 11 September
(or, during a leap year,
12 September) according to
the Gregorian calendar.
Youth Day
(RSA)
In remembrance of
the Soweto student
uprisings of 1976.
July11World 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
world’s population reached fi ve
billion people.
Djoulde Soumae, Eid-al-Fir
(End of Ramadan)
Ramadan, the greatest
religious observance in
Islam, is an annual
month of fasting.
people
At Tiger
Brands we
cherish our:
8
people
Olufunke Ighodaro joins Tiger Brands as new Chief Financial Offi cer
School of Magic 2011 programme kicks-off
The Tiger Brands board has approved the appointment of Olufunke “Funke”
Ighodaro as Chief Financial Offi cer (CFO) and executive director. She joined
the company on 1 June.
Funke joined Tiger Brands from Primedia where she served as CFO since
September 2001. Before working at Primedia she was an Executive Director
of Kagiso Trust Investment Company and worked in corporate fi nance at
Standard Corporate and Merchant Bank.
Funke qualifi ed as a Chartered Accountant with Price Waterhouse in
London, where she spent ten years in audit and tax. She is a Fellow of
the Institute of Chartered Accountants in England and Wales, and an
independent non-executive director of Datatec Limited.
Thirty-six employees from various Tiger
Brands businesses convened with great
fanfare at the School of Magic in South
Africa. The programme, which runs
from April to July, is a customised, in-
house training course organised by Tiger
Brands for staff, designed to enhance
their marketing skills and knowledge. It
teaches the latest best practice marketing
techniques, thinking and processes at Tiger
Brands businesses and global case studies.
9
people
Beverages team runs J.P. Morgan Challenge
Congratulations Fanie
Cricket fun in Paarl
Beacon’s ‘Biggest Losers’
The thrill of an evening run to
support a charity attracted
Tiger Brands’ Beverages team to
participate in the eighth annual
J.P. Morgan Corporate Challenge in
Johannesburg in March.
More than 12 000 entrants from 348 companies
ran the race. This was the third year the
Beverages team participated.
IT employee Mandla Myeni joined the
Beverages team and delivered a sterling
performance. He led the race for the fi rst
kilometre and fi nished in an impressive
24 minutes and 16 seconds. The rest of the team
strolled in about an hour later. This year the event
raised funds for the LEAP Science and Math’s
School, which consists of four independent low-
fee paying schools serving the communities of
Langa and Gugulethu in Cape Town and Alexandra
and Diepsloot in Johannesburg.
The J.P. Morgan Chase Corporate Challenge
is an annual series of 3,5 mile (5,63 km) road
footraces owned and operated by J.P. Morgan
Chase, focusing on promoting “fi tness in the
workplace”.
The Beacon Development Centre recently held their own
‘Biggest Loser’ challenge. Fourteen people participated,
contesting in weekly individual weigh-ins for the highest
percentage weight loss. The total group weight loss was
39,5kg, which equals 394 Beacon slabs of chocolate and
one TV Bar. Congratulations to the fi nal winners, Russell
Perkett and Nomusa Bhengu.
The Tiger Brands Shared Service Centre (SSC) in Paarl recently organised a cricket team
to play a once-off match against Groot Drakenstein in the quaint village of Franschoek
in the Western Cape. Twelve Tiger employees stood up to the ‘pitch’ led by captain on
the day Anthony ‘Cat’ Roberts and vice-captain Benedict September.
Unfortunately for Paarl SSC the result was a resounding win for Groot Drakenstein.
However, a great day of cricket was had by all. A rematch is on the cards soon.
Fanie van Wyk, Maintenance Coordinator, Marble Hall, recently
received recognition for his 30-years service. Marco Robberts,
Unit Manager, Marble Hall, did the honours of handing him the
certifi cate.
Judith VercueilTiger Brands Beverages – Johannesburg
Jessie SinghTiger Brands Out of Home Solutions – Johannesburg
Sharon FindlayTiger Brands – Corporate Hill, Johannesburg
South AfricaIndiaNamibia
Vish Govender Tiger Brands Beverages – Durban
Zambia TigertrekkersHighlights the “Kodak” moments from Tiger
Brands’s employees’ holiday travels. Want
to share your holiday photo? Send it with a
short caption including the country and town
visited to [email protected].
Photos should be at least 300 dpi in quality.
Editorial team reserves the right to edit
contributions as is necessary.
people
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Mesmerised by the iconic Taj Mahal.Quad biking in the dunes at
Swakopmund.
Roaming with one of Africa’s “big fi ve” at
the Plettenberg Bay Elephant Sanctuary.
Hiking with wildlife at Victoria Falls.
people
Snow boarding enthusiastFor scores of South African youth nowadays, working
abroad has become an obvious life experience to have
rather than a hard-to-attain dream. Typical vocations
include serving as au-pairs, coordinators at children
summer camps or cruise ship attendants. Not so for Soli
Khumalo, a mechanical engineering intern at Tiger Brands’ Salt River
Beverage site. Teaching people snowboarding is what makes him tick.
How did your snowboarding
adventure begin?
In 2004 I joined Chilli Adventures, an agency that
organises overseas work and travel adventures for young
South Africans. They placed me at a ski and snowboard
resort in Wisconsin, USA. I have been working there
during my Christmas vacations ever since.
How many times have you gone
snowboarding?
I learnt how to snowboard during my fi rst
snowboarding season working as a ski lift operator in
2004. The following year I was hired by the ski resort
as a snowboard instructor and since then I have been
teaching snowboarding lessons. My next will be in
December.
What is your favourite part about
snowboarding?
Doing a jump and rising 15 feet above the ground.
While I am airborne, everything seems to move in
slow motion. That’s when I feel I can fl y.
What is the reason you keep going
back to the ski resort?
I love snow boarding! Plus it’s a great way to
keep in my interest in the sport and travel, while
maintaining a normal job.
Do you snowboard while you are in
South Africa?
No. Tiffi ndell is a ski resort in the southern
Drakensberg Mountains, but it is extremely
expensive because it is the only ski resort in South
Africa.
Where is your dream snowboard
destination?
The Rocky Mountains on the west coast of the USA.
The snow is so soft it feels like riding on a cloud.
How far would you like to take your
snowboarding career?
My boss at the resort always says that I am the
best Zulu snowboarder because I am the only Zulu
snowboarder. I would love to get a gold medal at the
Winter Olympics just to make it offi cial.
If a young South African wanted to
start skiing or snowboarding, what
advice would you give them?
Since snowboarding is a very expensive sport, a good
way to start is to get a job at a ski resort to learn
and practice for free. After that it simply depends
on how far you wish to take your passion for
the sport.
11
people
An experience of a lifetimeWhile touring the northern regions of Namibia
this year, Sharon Findlay spent the night at the
Otjitotongwe Cheetah Ranch. What an experience!
She had the opportunity to spend the afternoon with the owner
of the ranch as he fed his 17 semi-wild cheetahs and then went back
to his house to meet “Stoute”, his three-year old female cheetah
that lives with the family. As she walked onto the property, Stoute
came bounding out of the bushes and headed straight for her. Sharon
went down on her knees and the cheetah
immediately came into her arms and began
purring and licking her all over. She was in her
element with tears rolling down her cheeks as
she was holding and playing with one of Africa’s
most majestic, but sadly, most endangered cats.
It was an experience she will cherish forever…
12
Thumbs up for EnterpriseWell done to the Enterprise Deli team in the Western Cape who
won the Spar Deli Supplier of the year award at the annual Spar
Indaba held on 25 May. The award was based on sales and
service levels.
Over and above the sales and distribution functions, Craig Harris
and his team play an important role in the training of deli staff at
various stores in good housekeeping and hygiene practices, product
knowledge and product displays. This all contributes to making
Enterprise a market leader.
Congratulations to Craig, Gillaume, Libby, Joy, Laetitia and Bruce.
performance
At Tiger Brands we deliver:
performance
14
In November, Tiger Brands
generated lots of public interest
after announcing several
acquisitions in Africa, as part
of its strategy to expand on
the continent. Tiger Tales
talked to Tiger Brands’ head
of international operations,
Neil Brimacombe, about the
expansions plans.
Why is Tiger Brands expanding into
Africa?
Our expansion into the rest of Africa represents
one of Tiger Brands six corporate strategic thrusts.
Given that we enjoy fairly signifi cant market
share and globally comparable operating margins
locally, our growth outside South Africa is an
important growth vector. Africa enjoys several
conditions necessary for business investment,
including positive GDP growth levels, relative
socio-political stability, a young and growing
population, an emerging middle class off the back
of oil extraction in certain regions, and signifi cant
foreign investment in infrastructure. Further,
by 2030, Africa is forecast to be the world’s
most signifi cant populated continent. Africa
therefore represents a very attractive commercial
opportunity for Tiger Brands.
Is Tiger Brands looking to invest in
other emerging markets outside
Africa?
Our vision is very clear in that we aim to be the
world’s most admired company in emerging
markets. While expanding into Africa is a very
clear priority, we are always looking at suitable
opportunities elsewhere, including signifi cant
opportunities in Latin America and Asia. We already
have an investment in Latin America, with our
minority stake in the food company, Carozzi, based
in Chile. The company’s footprint also extends to
Peru and Argentina. We are aiming for at least 20%
of our Tiger Brands group turnover to come from
outside of SA within the next 3-5 years.
What criteria is used to decide
which emerging market Tiger will
invest in?
Actually, there are several factors and they vary in
each instance. In general, criteria can include:
Population size and per capita GDP
Political and social stability
Case of doing business in the country
The level of market fragmentation and associated
competitive landscape
Country and category growth levels
The relative size of the individual opportunity.
How is the international strategy
progressing?
After recently announcing our acquisitions, we now
have manufacturing operations in Nigeria, Ethiopia,
Africa expansion
performance
strategy on track
15
Kenya, Cameroon and Zimbabwe. This, coupled
with our exports business, reveals that we have
a footprint in excess of 25 countries in Africa.
Nonetheless, we are only halfway in delivering
against the 20% turnover contribution target,
suggesting of course that much more work
remains.
What challenges accompany
doing business in Africa?
The markets in Africa are dominated by wet and
open air markets, so our route to market and
associated point of purchase strategies require
very specifi c and customised approaches. In
addition, roads and basic infrastructure are
not yet to the level of South Africa. Power and
water supply in some countries are inadequate.
Such factors can affect the ability of our
manufacturing facilities to operate effi ciently.
Who are Tigers main competitors
in international expansion into
emerging markets?
Whilst we see the typical multi-national giants
such as Proctor & Gamble, Unilever and Nestlé
investing heavily in emerging markets, we’re
also seeing an increasing presence in Africa by
large regional FMCG companies from China,
India, Indonesia and Malaysia.
Who makes up the Tiger Brands
International team?
The Tiger Brands International team (TBI) is
primarily responsible for developing the
Group’s business in emerging markets.
The senior team consists of:
Neil Brimacombe
Business Executive – Tiger Brands
International
Mike Conway
Managing Executive – Exports / Davita
Gavin Campbell
Regional Managing Executive – West Africa
Boniface Ngarachu
Business Executive – stakeholder relations
and strategy
Polycarp Igathe
Managing Executive – Haco Tiger Brands
(Kenya)
Mouhamadou Ndiaye
Managing Executive – Chococam (Cameroon)
Mulugeta Gebremedhin
Managing Executive – East Africa Tiger Brands
Industries (Ethiopia)
performance
Haco Tiger Brands unveils new corporate identity
A revamped brand for MIADIHACO Tiger Brands unveiled its new look ethnic hair care
brand MIADI at a colourful ceremony in Nairobi in March.
More than 200 top hair stylists and owners of leading beauty
shops attended.
HACO Tiger Brands launched MIADI, a Swahili word meaning “the promise” in English, in
2008. The product contains various natural ingredients such as Aloe Vera, Olive oil, Rosemary,
Sage, Neem, Tea tree oil and Bergamot oil, which provide an all-round natural touch. The new
packaging has a tamper proof seal.
HACO Tiger Brands carried out a 360 degree MIADI testimonial campaign endorsed by hair
stylists, which means it becomes the only hair care brand endorsed and recommended for
ethnic hair by hair stylists across East Africa. MIADI provides a full range of products for all hair
care functions, including relaxing, treatments, styling and cleansing.
2011 marks the third anniversary HACO changed its
name to HACO Tiger Brands. In 2008 HACO founder Chris
J. Kirubi and Tiger Brands of South Africa entered a joint
venture to create a leading FMCG company in the East
African region.
HACO Tiger Brands hosted a breakfast event in April at the Windsor Golf Club in
Nairobi to unveil its new corporate identity. The new identity incorporates the Tiger
Brands logo.
Professor Njuguna Ndung’u, the Governor of Central Bank of Kenya attended
the occasion as chief guest. Five hundred guests including business stakeholders
from Kenya, Tanzania, Uganda, Ethiopia, Rwanda, Burundi, Sudan, Somalia, Djibouti,
Congo, Angola and Zambia attended the event.
Before launching to the public, HACO Tiger Brands revealed the new corporate
identity to staff at the HACO Tiger Brands grounds in Kasarani. During the staff
launch, the winners of the fi rst round of Tiger Stripes were awarded certifi cates, a
gift hamper and cash vouchers.
Interim results fl at, but outlook remains positive
performance
17
Tiger Brands released its interim
results for the six months ended
31 March 2011 on 30 May.
Thanks to the challenging
environment, the results were
mildly positive, but the company
believes its recent acquisitive
activity and strategic input will
begin to play a more pertinent
role in the next six months.
After excluding the impact of a once-off charge for
Tiger’s BEE Phase II transaction refl ected in the prior
period results, headline earnings per share (HEPS)
declined by 2% (to 747,9c a share) compared to the
corresponding period last year.
Operating income declined by 3% to
R1,551 million on a 1% increase in turnover to
R10,450 million, while operating margin reduced to
15,0% from 15,7% for the same period last year.
Review of operations
CEO, Peter Matlare, says that the modest increase
in turnover and the 2% earnings decline were
infl uenced by:
price defl ation in certain food commodities;
the impact of promotional discounting in
certain categories to restore volume growth;
a continuation of diffi cult trading conditions;
continued weak consumer demand; and
rising cost pressures.
“We are satisfi ed with our performance in the
face of unusually diffi cult conditions,” he stated.
However, that the outlook for the remainder of the
fi nancial year is somewhat more positive, with the
company continuing to pursue value-enhancing
opportunities, further increasing its manufacturing
and distribution footprint outside of South Africa.
Highlights
Grains increased operating income by 5%,
driven mainly by the Rice business.
The Durban bakery upgrade, at a cost of
approximately R109 million, is scheduled
for completion in September, while the
expansion of Hennenman is proceeding
according to schedule.
The King Food business performed well,
benefi ting from lower sorghum raw material
costs and a strong performance from Ace
Instant porridge.
Good volume growth was achieved by
Smoothies, Jungle Energy Bar and TV Bar.
Energade continued to gain market share and
remains the leading sports drink brand.
The Out of Home business improved
volumes signifi cantly.
The Home Care business delivered strong
volume growth, benefi ting from competitive
pricing and favourable weather conditions.
Babycare performed well as mothers
continued to place their trust in Purity.
Exports achieved a pleasing performance,
continuing to benefi t from the focused
expansion drive into the rest of Africa.
Haco rebranded to become Haco Tiger
Brands (East Africa) to mark Tiger’s successful
integration into Kenya and East Africa.
consumers
At Tiger Brands we treasure our:
18
consumers
19
The ins and outs of the new
consumer lawThe Consumer Protection Act (CPA) came into effect in April strengthening the rights of South African consumers. But how does it affect the consumer?
Transactions covered by the CPA include any purchases or
instances where one pays for a service, direct marketing,
the use of simple language in contracts, and the
prohibition of unfair terms and conditions. The Act also
introduces consumer courts in each province in South
Africa where consumers will not require legal counsel and
complaints will be heard for free. At this stage only four
provinces have operational consumer courts.
Who does the CPA protect?
The Act protects any consumer and allows consumers
or a representative acting on their behalf to approach a
court, the National Consumer Tribunal or the National
Consumer Commission, to complain that a consumer’s
rights have been infringed. The tribunal and commission
are responsible for enforcing the Act.
What does the CPA Regulate?
The CPA regulates the goods and services industries.
Goods are items that can be seen and touched, such
as a book, a pen, salt, shoes, hats, a folder etc. Services
are provided by people, such as, a doctor, a lawn mower
worker, a dentist, a haircut and eating in restaurants
Examples of how the act will affect consumers
include:
Returns and refunds – Consumers will have up to six
months to return faulty or unsafe goods.
Deliveries – Ordering online? Goods will have to be
delivered at an agreed date, time and place. If not,
the consumer can accept or cancel the agreement.
Companies are also obliged to deliver goods that match
the sample or description of the product.
SMS competitions – Companies will have to stick to the
usual rates for SMS or MMS competitions.
Repairs – Companies will have to provide an estimate
for the work – which the consumer must approve – and
cannot charge more than the agreed price. If more work
is required above and beyond the estimate, they fi rst
have to get the go-ahead from the consumer.
Privacy – Sales people cannot bombard consumers at
certain times of the day and certain days of the year.
Cooling-off period – A consumer will have fi ve business
days to change their mind about a purchase. The
consumer is required to notify the company in writing
and the company will have 15 days to pay back the
amount in full.
Contracts – Under the new Act, automatic contract
renewals will be no more. Companies will have to contact
the consumer in writing.
Voetstoots – Suppliers, particularly in the car industry, will
have to let a customer know of all defects of the purchase
they make and the client will have to agree to buying the
product in that condition.
Reservations – The onus remains on the consumer to
cancel a booking or reservation.
More information on the new Act and its regulations can be found on the Department of Trade and Industry’s website, www.thedti.gov.za
20
consumers
To genetically modify or not?In this article, Stella Fenster,
food consultant for Tiger Brands,
writes about the interesting
debate on genetically modifi ed
foods.
Genetically Modifi ed (GM) foods are foods
made from a crop or plant where the gene in
the original plant has been artifi cially altered, in
an effort to improve their growth or nutritional
properties.
The initial aim for developing plants based on
Genetically Modifi ed Organisms (GMOs) was to
improve crop protection through the introduction
of resistance against plant diseases caused by
insects or viruses. This practice has stimulated some
debate across the international food industry.
In South Africa GM foods have been
commercially available for over a decade and
their production is required to conform to the
requirements of the GMO Act. The new Consumer
Protection Act (CPA) introduces additional
requirements for labelling foods where GM content
exceeds a stipulated amount.
Genetic Modifi cation has achieved intricate
results. For example, a drought resistant gene
can be extracted from one plant and infused into
another creating a drought resistant strain which
can be commercially grown in large volumes in dry
conditions. Also, there is bacteria which contains
substances that are lethal to insects. Once the
gene of the bacteria is inserted into the crop, the
crop starts to produce its own pesticide which
in turn kills the insects, negating the need for
intensive crop spraying usually required to protect
the crop. In this instance, the benefi t is to the
farmer and, in turn to the consumer. The former
being as a result of crop protection and the latter
due to less pesticides being sprayed onto the crop.
The nutritional value of a product can also be
enhanced using genetic modifi cation. This practice
is also referred to as ‘genetic engineering’. Genes
can also be transferred between different and
unrelated species, for example a bacterium into
a plant. The bacterium would most often have a
benefi t that the plant does not inherently contain.
GMOs are organisms in which the genetic
material (DNA) has been altered in a way that
does not occur naturally. The technology is called
“modern biotechnology” or “gene technology”,
sometimes also “recombinant DNA technology”
or “genetic engineering”.
Some people have strong opinions on
GM foods. Environmental activists, religious
organisations, including the Vatican, public
interest groups, professional bodies, scientists
and government offi cials have all raised concerns
about GM foods. Criticism has also been targeted
at the agricultural fraternity for pursuing profi t
without concern for potential hazards.
GM foods have become the global norm and
advocates for this practice highlight its ability to
heighten food production and security. Detractors
caution against environmental hazards, economic
concerns and possible human health risks.
With ever-changing science, the debate around
GM foods looks set to continue for a very long
time!
world
At Tiger Brands we
care about our:
21
22
world
Ingram’s Camphor Cream supports Jacaranda 94.2’s Winter Warmer initiativeIngram’s, the best selling skin
care cream in South Africa,
partnered with Jacaranda
94.2’s 2011 Winter Warmers
charity drive, which ran from
April to May.
Ingram’s donated fi ve cents to the campaign
for every jar of Ingram’s sold during the
campaign.
This year’s drive, which aimed to get
25 000 blankets, benefi tted various charities
including:
Oliver’s House
Lions Club International
The Rotary Foundation
The South African Red Cross Society
Gift of the Givers
The Salvation Army
This annual initiative was launched in 2005
to provide blankets to people from various
homes, shelters and orphanages. In 2010 the
campaign warmed more than 23 000 people
and donations totalled almost R1 million.
Computers for Limpopo school
Beacon and Beverages teams support orphanages
world
23
Staff from Tiger Brands’ manufacturing facility in Modjadjiskloof, Limpopo province were received at
Mampaana Primary School with a celebratory gumboot dance, when they delivered computers to the
headmaster and teachers of the school.
Initiated by the Employment Equity Committee at Modjadjiskloof and Unit Manager, Dirk Kotze, the
donation was facilitated by Donald Phosa (now HR Offi cer for Consumer Brands in Boksburg). Donald
addressed learners and encouraged them to start reading books and learning English from an early age.
“I hope this will lead to Unit Managers, Quality Assurance Managers and Production Managers,
among others, graduating from Mampaana Primary School”, said an enthusiastic Donald.
This was the fi rst time Tiger had come to the aid of Mampaana and they will follow up on the
progress of computer literacy training.
Tiger Brands’ Beverages team organised an Easter charity drive collecting several hundred
chocolate eggs and bringing bunny cheer to more than 700 children at thirteen orphanages
across Johannesburg. The team launched the drive in February and collected 59 boxes of eggs,
over 2 500 single eggs.
“Being on the road in Gauteng to the various homes was a heart-warming and fun-fi lled
experience and brought myself and the team great joy, “says Roxie Naicker, Assistant Shopper
Manager at Tiger Brands Beverages. “The children we visited deal with very tough circumstances.
Many were abandoned or are victims of abuse, but the kindness of their current caregivers
defi nitely provides a brighter future,” adds Roxie.
Staff at the Development Centre of Beacon Sweets and Chocolates
visited the Isiah 54 orphanage during Easter, as part of their
commitment to give back to the community. The shelter is home to
20 orphans and abandoned children between six months and 18 years.
Staff donated sweets and food hampers and spent time playing with
the children. The staff has decided to continue undertaking community
upliftment projects to benefi t other deserving organisations.
world
24
The two were pushing the car down
a slope when the driver suddenly lost
control. Jimmy’s friends scattered
in time but he was not so lucky. He
spotted the runaway vehicle just
before it thumped into the wall and
crushed his left leg.
Luckily, Jimmy is a member of
the Tiger Brands Medical Scheme,
which meant he could be treated
immediately at one of the leading
private hospitals in the country. What
followed was months of medical
treatment from various surgeries and
numerous procedures, all managed
by a world-class medical team. Had
Jimmy not been on a medical aid he
would have needed R1,3 million to
cover the bills.
“This is an important lesson,” says
Tiger Brands Medical Scheme Principal
Officer, Andre Koekemoer. “Many
young people believe they do not need
medical scheme benefits because they
are young and fit. However, Jimmy’s
case proves otherwise. Accidents
Why young people need a medical aid policyChatting with his friends outside an ATM in March this year, 24-year-old Jimmy* barely
noticed two men attempting to jumpstart a Mercedes Benz. He also had no idea that the
men’s actions would change his life.
and medical problems can occur
unexpectedly at any age and, besides
the physical hardship, the costs can be
crippling,” he adds.
Tiger Brands Medical Scheme is a
closed medical scheme that covers the
employees of Tiger Brands. Koekemoer
says that the scheme has been
completely committed to Jimmy’s
case and will continue to do so as long
as he needs medical care.
* Name has been changed
“Medical scheme benefits are
not a nice to have – they are a
necessity, an investment in your
life,” concludes Koekemoer
integrity
At Tiger Brands
we safeguard our:
Toll free number: 0800 80 80 80Email: [email protected]
Tiger Brands Ethics Line contact information
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