Tiger Brands

Tiger Brands

Type	Public company
Traded as	JSE: TBS
Industry	Consumer Goods
Predecessor	Tiger Oats
Headquarters	Bryanston, Gauteng, South Africa
Area served	South Africa and Selected Emerging Markets
Key people	Lawrence MacDougall (CEO) Funke Ighodaro (CFO) Andre C Parker (Chairman)
Products	Over one hundred covering a variety of packaged goods and foodstuffs.
Revenue	R31.59 Billion (FY 2015"')[1]
Operating income	R3.65 Billion (FY 2015"')[1]
Number of employees	20 591[1]
Subsidiaries	41
Website	www.tigerbrands.com

Tiger Brands Limited (JSE: TBS) is a South African packaged goods company.^[2] In addition to the company's South African operations Tiger Brands also has direct and indirect interests in international food businesses in Chile, Zimbabwe, Mozambique, Nigeria, Kenya and Cameroon.^[3] Tiger Brands is South Africa's largest food company.^[4]

History

In 1998 Tiger Oats bought out Imperial Cold Storage.

The Old Tiger Oats buildings in Moorreesburg.

Founded in 1921 by Jacob Frankel, with some help from Joffe Marks, Tiger Brands Limited -formerly known as Tiger Oats Limited - was built on the strength of family businesses and the spirit of entrepreneurship.

2010 box of Jungle oats (left) oatmeal as well as an example of the first box from the 1920s (right) reflecting how the use of the Tiger Oaks logo on its packaging has changed in the 90 years since its founding.

Originally known as Tiger Oats, Tiger Brand's first product was a breakfast oatmeal brand called Jungle Oats. A product that is still produced by the brand. It was first conceived by a Mr Frankel towards the end of the 19th century and was finally launched in 1925. Tiger Oat's first Mill was opened in Moorreesburg, Western Cape. A second mill was opened in Maitland, Cape Town when demand outgrew the Moorreesburg's mill's capacity in 1930. The Moorreesburg mill was abandoned in about 1987.^[5] In March 1982 Barlow bought a considerable share of Tiger Oats.^[6]

In 1988 SPAR South Africa became a wholly owned subsidiary of Tiger Oats, however it was unbundled and listed as a separate company in 2004.^[7] During the late 1990s Tiger Oats went through a period of rapid expansion. Buying out other large companies and competitors such as food packaging company Imperial Cold Storage and Supply Company in October 1998^[6] and pharmaceutical company Adcock Ingram for R3.4bn in 1999.^[8] After these buyouts Tiger Oats was renamed Tiger Brands. In July 2008 Adcock Ingram was unbundled from Tiger Brands.

Tiger Brands Limited's subcompany, Tiger Food Brands Ltd merged with Bromor Foods (Pty) Ltd, which owns the Super Juice carbonated drink.^[9] In1 October 2009, the Company acquired Crosse & Blackwell's mayonnaise business for an undisclosed amount.^[10][11]

In 2008 Tiger Brands launched an agreesive expansion program into the rest of Africa. In the process the company bought a controlling stake in a number of food processing businesses in Nigeria, Kenya, Ethiopia, and Cameroon.^[12]

This included a R1.5 billion purchase of 65.7% in Dangote Flour Mills in October 2012, Nigeria's second largest milling operation. This and other investments in Africa proved to be costly and unproductive. Over capacity in the Nigerian market led to an operating loss of R2.7 billion by the time Tiger sold back the operation to Dangote for a token one US dollar three years later in 2015. Management issues in Tiger's Kenya operations and the collapse of its Mozambican distributor and Deli Foods subsidiary also negatively impacted the company in this period. This led to then CEO Peter Matlare to resign in November 2015 and a reorganisation of its non-South African operations.^[12]

Price-fixing Scandals

Bread

In mid-November 2007 Tiger Brands was fined R98.8 million (roughly equivalent to US$12.8 million)^[13] by the South African Competition Commission for colluding with other bread producers to raise the price of bread by between 30c and 35c per loaf.^[14]

According to the commission the four companies involved (Premier Foods, Tiger Brands, Foodcorp and Pioneer Foods) controlled more than 90 percent of the wheat flour market at the time. Facilitating their pricing activities through secret meetings and telephone calls between employees of these firms at various venues, including churches, stadiums and hotels. The commission also found that the price-fixing activities had a negative effect on both consumers as a whole as well as inhibiting smaller bakeries from being effective competitors.^[15]

The fine reflected 5.7% of Tiger Brand's bread sales, coming mostly from its Albany brand, for the 2006 financial year.^[14] Tiger Brands took full responsibility and then CEO Nick Dennis resigned.^[16]

Adcock Ingram Critical Care

In May 2008 Tiger Brands agreed to pay a R53.5 million fine for alleged anti-competitive practices in its health care subsidiary Adcock Ingram Critical Care (AICC). AICC executive Arthur Barnett was suspended until the investigation was concluded.^[17][18] In July 2008 Tiger Brands stated that it was going to unbundle its entire Adcock Ingram subsidiary with each Tiger Brands shareholder receiving one share in Adcock Ingram for every Tiger Brands share they owned.^[19]

Subsidiaries

Over the years Tiger brands has continued to grow and expand its corporate footprint all around the world. Throughout this journey Tiger brands has continued to expand its horizons through the acquisition of various subsidiary organisations, the list of these organisations looks as follows:

Corporate Social Activities

The company conducts and supports a number of corporate social activities in South Africa. These include food security projects such as partnerships with NGOs, the Buhle Farmers Academy, Afrika Tikkun, and the Nelson Mandela Metropolitan University community project. The company also supports public befit organisations and activities by organisations such as Cotlands, and the Tiger Brands Foundation.

Brands

Brand (country if not in South Africa, year of acquisition and/or launch)^[20][21]

Dairy 

A selection of three popular Dairy Belle dairy products. A box of full cream long life milk, a bottle of strawberry drinking yogurt, and a carton of passion fruit yogurt.

• Dairybelle
• Lanolene Milk

Perishables 

A selection of three Enterprise products. Sliced meats, canned viennas, and a can of corned meat.

• Renown
• Like it Lean
• Enterprise Foods
• Easy Meal
• Mrs. Paul's Kitchen
• Nice and Easy
• Simply Delicious
• Suddenly Supper

See also

• List of companies of South Africa

References

External links

• Tiger Brands Limited Official Site