We believe in doing more… with a single minded passion to provide more food to more people, more often. We believe that by nourishing people while sustaining our resources, everyone wins. Communities will be enriched, employees inspired and our customers and shareholders will enjoy the benefits.
In our Passion to do “more”, we are driven by a desire to improve people’s access to nourishing food while achieving sustained business growth. The three “mores” of our Passion are a simple expression of our interlinked social and business agenda.
“More food” means delivering more nourishing food, better value and greater choice to our consumers. This is achieved by building our portfolio with strong brands and by gaining a bigger share of consumer meals through added-value products and relentless innovation.
“More people” means making a variety of food choices available to all people, not just some. To achieve this, we must increase our market share in our existing categories and find new consumers in new categories and markets.
“More often” means providing affordable food to everyone, every day, everywhere. We will achieve this by reaching new consumer occasions through increased distribution of our products and better market penetration.
A strong value system underpins our business model, drives our strategy and informs our behaviours at all levels.
RESPECT FOR PEOPLE
goes hand in hand with seeing and doing things differently. By treating all people with dignity and fairness, we get to create a diverse, inclusive, performance-based culture where people are inspired to be the best they can be.
SEEING AND DOING THINGS DIFFERENTLY
is our key competitive advantage, and the reason why we can keep moving forward and achieving more. We are energetic, passionate and driven by a desire to innovate in every part of our business. Not only do we encourage change to create value, but we embrace it to stay relevant.
ensures that we are consistently ethical in our conduct, and that honesty and transparency govern all our business relationships.
is a collective mandate that drives our actions at all levels. We believe that we have both a responsibility and accountability for the protection of the environment, and the wellbeing of the communities, in which we operate.
Our ambition is to build a profitable business of scale by creating food brands that matter. Having expanded our scale through strategic acquisitions in 2013/14, we are now working towards a goal of doubling our revenue in five years,whilst driving a steady and sustainable improvement in our operating margin. To realise our ambition, we are dedicated to creating food brands that people love – brands that make an impact on their lives and cater to their needs.
Our Business Model
Our journey started over three years ago with the restructuring of the Rainbow business and our acquisition of Foodcorp. With our subsequent acquisition of TSB and the establishment of joint ventures in Zambia (Zam Chick, Zamhatch) and Botswana (Senn Foods), we were transformed into an African food producer of scale. These acquisitions secured a foundation from which to expand through the execution of our growth-focused business model.
Several significant opportunities exist in South Africa and the rest of Africa for RCL FOODS’ market share to expand across various food product categories. Our sizeable portfolio of core categories enables us to reach a wide range of consumers and diverse touch points through depth of distribution and strong market penetration. It also contributes to growing our scale and cash flow as a basis for future strategic growth.
With the above context in mind, our business model focuses on growing our revenue and profit across both our core and added-value categories. In South Africa, where we already have a wide market penetration, we will focus on maximising the potential of our core categories (chicken, sugar, grains and animal feed) while accelerating growth in higher margin, added-value categories tailored to our customers’ requirements (food solutions, speciality products and pies) and our consumers’ needs (groceries, baking, beverages and added-value chicken).
In the rest of Africa, we will focus our efforts on first establishing a strong presence in the four core categories,
then on introducing added-value offerings as we build scale in these markets. At the same time, we are always looking to expand our markets across South Africa and in the rest of Africa by acquiring new businesses or categories in line with our ambition.
Vector is a key enabler in our business model, providing us with a dedicated and highly efficient route-to-market service. As an integrated outbound supply chain business, Vector’s sales, logistics and distribution capabilities will play a crucial role in delivering on our business model while boosting efficiencies in line with our ambition. Going forward, it is our intention that Vector will influence 100% of RCL FOODS’ route-to-market.
Our business model will be delivered through six strategic thrusts:
- grow through strong brands
- partner with strategic customers
- extend our leading value chain
- inspire great people
- expand into Africa
- drive sustainable business.
What Sets Us Apart
- Our portfolio of leading brands ranging from staples to top-end, added-value offerings
- Our integrated business model which includes our own route-to-market featuring an integrated outbound supply chain and world-class technology and systems
- Our significant size and scale, combined with diversification, to counter cyclicality and provide a platform for expansion
- Our management team's extensive knowledge and experience in the South African food industry and our strong operational track record of delivering steady, through-the-cycle revenue growth
- Our expansion into Africa through a number of projects in sub-Saharan Africa, in line with our lowrisk African expansion strategy
- The support of Remgro Limited, a highly regarded strategic shareholder