MORE MORE PEOPLE, MORE OFTEN - FOOD TO
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MORE FOOD TO
MORE PEOPLE,
MORE OFTEN
www.rclfoods.com
Our business profile
Over 230
operations across South More than
Africa and Africa 20 000 employees
Founder and partner
(including joint ventures)
of the DO MORE
RCL FOODS is a leading South African food manufacturer that produces a wide range of branded and private label food products FOUNDATION which
in various categories, ranging from staples to value-added high-end speciality offerings, which we distribute to our retail and food aims to DO MORE
service customers through Vector Logistics, our own route-to-market supply chain specialist. for young children,
With R8,4 billion in market capitalisation and more than 20 000 employees, we are one of the top 100 companies listed on the JSE. Home to more than youth and to ease 110 million cases delivered
Driven by Our Ambition and Our Passion, and guided by Our Values, our strategy is about creating the future Our Way. 30 of South Africa’s much- hunger in vulnerable annually by Vector Logistics,
loved brands communities our route-to-market specialist
More Food to More People, More Often
Our We believe in doing more... with a single-minded passion to provide More Food to More People, More Often.
Passion We believe that by nourishing people whilst sustaining our resources, everyone wins. Communities will be
The businesses
enriched, employees inspired and our customers and shareholders will enjoy the benefits. that form
RCL FOODS
share deep
1891 1916 1960
South African A small family- Our first animal Rainbow Chicken
Our To build a profitable business by creating food brands that matter roots, dating owned flour mill feed mill was built. started its operation
back over 120 was established in Today we are one on a humble farm in
The key to our strategy is to build brands that people love – brands that make an impact on their lives and
Ambition years. Pretoria. Today it
is the centre of our
of the leading
manufacturers of
Hammarsdale, with
its first processing
1965
cater to their needs.
Milling operation. animal feeds. plant being Our first sugar mill
commissioned soon began processing
after. sugarcane in Malalane.
Our Passion and Ambition are enabled by six strategic thrusts: Today we are
one of the largest
Our Grow through Partner with Extend our leading
RCL FOODS is
built on strong
sugar producers in
South Africa.
Strategic strong brands strategic customers value chain
2013 2004 1989
strategic
acquisitions,
Thrusts Inspire great Expand into the Drive sustainable Foodcorp, one of South
Vector Logistics
was acquired with
Rainbow
Chicken Limited
making it one
of the largest
people rest of Africa business Africa’s largest food food producers
the strategic intent was listed on
producers, was acquired. in South Africa.
of controlling and the JSE.
optimising the
Our company name
outbound supply
changed from Rainbow
Four powerful values drive the way we do business: Chicken Limited to RCL
chain.
FOODS Limited.
Our Respect for people Uncompromising integrity
Values
Seeing and doing things differently Act responsibly
2014 2016 2018 2019 2020
The leading sugar producer, A 33.5% stake in A 50% stake in Driehoek Voere, a producer A minority shareholding in the
Inspired by Our Passion and Our Values TSB Sugar RSA and TSB Sugar
International, was acquired.
Ugandan poultry
producer, HMH
Matzonox,
a waste-to-value
of game, ruminant and horse
feeds, was acquired.
LIVEKINDLY co. was acquired.
Our unique RCL FOODS culture is at the heart of our strategy, brought to life in Our Way – Rainbow Limited, operation, Vector Logistics acquired
Our the key behaviours that inspire the way we work and create value. A 49% share of Senn Foods
Logistics, a Botswana-based
was acquired. was acquired. A 45% stake in L&A Logistics
Limited, a distribution
certain key assets of Imperial
Logistics South Africa Group
Way
logistics company, was acquired. operation based in Zambia, Proprietary Limited’s cold chain
MORE IMPACT MORE OPEN MORE CURIOUS was acquired. business (ICL).
A new B-BBEE transaction was
implemented.
MORE BRAVE MORE SPEED MORE YOU
Where we are Our structure
RCL FOODS’ operations span across South Africa,
Swaziland, Namibia, Botswana and Uganda. We have
a strong footprint across South Africa with our farms,
mills, plants, bakeries and distribution sites.
In pursuit of our ambition to create a strong resilient business with food brands that matter. Our operations are carried out
by three divisions – Food, Chicken and Logistics – which are supported in common strategic and functional areas by our Group
Functions platform.
Limpopo
North
Mpumalanga Vector Logistics distribution site
Gauteng
West
Vector Logistics head office
Free State
KwaZulu-
Northern Natal RCL FOODS NATIONAL PLATFORM
Cape
Strategy customer Centralised centres Best in class Top talent with
Eastern relations of excellence innovation capability leading culture
Cape
Western
Cape
UNIQUE CAPABILITY TO MANAGE MULTIPLE BUSINESS MODELS
Uganda
HMH Rainbow
Kenya
Gabon
Congo
Democratic
FOOD CHICKEN LOGISTICS
Republic of the DIVISION DIVISION DIVISION
Congo
Tanzania
Groceries
Grocery + Pies + Beverages
Poultry Sales Solutions
L&A Logistics
Malawi
Angola
Zambia Mozambique Baking Supply Chain
Feed
Millbake + Speciality Intelligence
Zimbabwe Sugar
Namibia Sugar + Animal Feed (Molatek) Warehousing
Botswana Senn Foods
Logistics
Spreads &
Distribution
Eswatini Creams*
Lesotho *Managed on behalf of Remgro by RCL FOODS
Royal Eswatini
South Africa Mananga Sugar Imports/Exports
Sugar
Packers
Corporation
Credit
Management
Food Division Chicken Division
Our Chicken Division provides a range of fresh and frozen chicken products, including popular value-added ranges, for consumer
Our Food Division produces a wide range of quality culinary, pet food and beverage products through its five business units. and food service channels. The division also produces quality grain-based animal feeds.
Baking Groceries Sugar Spreads* Chicken Feed
*Managed on behalf of
Remgro by RCL FOODS
WE OFFER OVER 30 BRANDS Vector Logistics
Our Logistics Division (Vector) provides RCL FOODS and numerous third parties with multi-temperature warehousing and
distribution, supply chain intelligence and sales solutions. In addition to facilitating our own integrated supply chain, Vector has
partnered with several leading food manufacturers, foodservice customers and retailers to distribute food products on their behalf
across Southern Africa.
Sales Supply Chain Warehousing Distribution Imports/ Credit
Solutions Intelligence Exports Management
We create value for our stakeholders by using our six capitals to manufacture, distribute and sell a wide range of branded and private
label food products. In line with our business model, our business activities centre on maximising profit in our core categories and
Our business model
accelerating growth in our added-value categories. A strong focus is provided by Our Ambition – to build a profitable business by creating
food brands that matter – and the six strategic thrusts that support its realisation.
Since our ability to generate value is impacted by our dynamic operating context and a constantly evolving set of risks and opportunities,
identifying and proactively managing these is key to our business operation. Equally important is the enabling role played by our unique
culture, Our Way, and our integrated ONE RCL FOODS structure.
Our Operating Context • Demanding Economic Conditions
We keep a close eye on the external operating • Pressure on Food Systems
Capital Inputs environment to ensure that we remain relevant
to our consumers’ needs and resilient in
• Food Security Threats
changing times. These include: • Changing Consumer Behaviour
Financial
Capital
Our assets, net debt and shareholders’ Our
interest, which we manage to sustain Strategic Maximise Accelerate growth
the ongoing financial demands of our profit in of our added-value
Thrusts our core
operations and provide capital for
inform the
categories
future growth. categories (Baking, Beverages, Chicken,
allocation of
(Chicken, Sugar, Grocery, Pet Food, Pies, Outputs
Human capitals and the Grains, Animal Feed) Speciality, Sweeteners) Utilising our six
Capital way we conduct These provide us Enable higher margins through capital inputs,
Our skilled, experienced and our operations: with a wide range brand differentiation and bring and guided by Creating
motivated people that enable our of consumer higher growth through innovation
business growth and value creation. Grow touch points and brand penetration.
Our Way and
our six Strategic
Value for our
Intellectual
through
strong
and are the
main staples on Thrusts: Stakeholders
Capital brands which we build Food Baking
• More than Our Communities
Partners Beverages
Our organisational knowledge, our added-value Pies 30 brands
Speciality Chicken Chicken Our Consumers
systems, procedures and intangibles Partner portfolio. produced
Sugar Grocery
associated with the brands developed. with Our Customers
Grains Pet Food by our Food
strategic Animal Pies
customers Division Our Employees
Manufactured Feed Speciality
Capital Sweeteners • Industry-
Extend our Government
The physical infrastructure available leading route-
leading to-market Media
to us for use in the production and
value chain services
distribution of our products.
provided by our Our Suppliers
Natural Inspire
great Route-to- Logistics Division
Capital
The natural resources our operations
people market New categories
Provide our Expand into new added-value
depend on, with the ambition of Expand products with an categories which will facilitate
becoming Energy self-sufficient, into the
integrated route- our move towards a more
Water-smart and Waste-free. rest of
to-market solution balanced, higher-margin, higher-
Africa
Social and through our growth portfolio.
Relationship Drive Logistics Division.
Capital sustainable
Our ongoing relationships with business
stakeholders to strengthen our 6. Regulatory Intervention
3. Liquidity Risk
network, create shared value and Our Key Risks 4. Commodity Price
& Policy Uncertainty
reinforce our licence to operate. The top risks that we update regularly 7. Societal Risks
Fluctuations 8. Food & Product Safety
and manage on an ongoing basis are:
5. Business Interruption – 9. Climate Change
1. Reduced Demand
Health & Safety and 10. Non-compliance
2. Pricing Pressure
Supply Chain 11. Information Security
For our Employees
Value we create
The value we created R31,8 million 3 000 staff A chance for employees
R52,7 million* spent
for our stakeholders spent on members
directly on keeping our
to DO MORE for
training nearly enabled to work vulnerable communities
in 2020 10 000 people from home
employees safe during
via monthly payroll
the COVID-19 pandemic
during lockdown contributions and active
* Relates
only to Cleaning, Health
participation in DO MORE
& Safety and Medical supplies
For our Communities and services for our employees FOUNDATION activities
R9,0 million in Over 8 million* meals Small-scale growers R43 million in lease
corporate social donated in 2020 generated R350 payments received by
investment via through the DO MORE million in turnover beneficiaries from three For our Environment
the DO MORE FOUNDATION from supplying cane partnering land claimant
FOUNDATION * in the 12 months to June 2020 to our mills communities
First power We have committed to 3% reduction in our
Water use in our
produced by step-change our plastic carbon footprint
Sugar business has
our Waste-to- packaging by 2025 to in 2020
reduced by 9.3%
Value plant in reduce waste and promote
since 2017
For our Consumers Rustenburg recycling
Over 30 much-loved 10 category-leading An opportunity to
South African brands brands We kept South help feed the hungry
Africans fed during through the DO MORE
the COVID-19
For our Government
FOUNDATION’s #GiveItUp
pandemic – COVID-19 relief initiative
delivering R47,9 million Public-private partnerships Supported Government’s call Engagement with
*
1 500 tons each paid in income help implement Government Government in
for participation in the Y.E.S.*
of flour and sugar, tax and policy for Early Childhood development of Poultry
Programme and for contributions
** 700 000 loaves of R731,6 million Development and land reform Sector and Sugar
to the Solidarity Fund
bread, 500 tons paid in VAT Industry Master Plans
* Youth Employment Service
of chicken, 270
tons of pet food
and 97 tons of
mayonnaise DAILY
***
during level 5 For our Investors
lockdown
* Freezer to Fryer category
** Core sugars We paid R221,8 million in dividends in 2020 We paid R257,7 million in interest in 2020
*** Horse Feed
For our Customers For our Suppliers
Produced fit-for- 12 former ICL* principals taken Strong volume growth 41% of Chicken R77,5 million in contracts R7,2 billion
Successfully Nearly 1,7 million tons of sugarcane
purpose private label into our Logistics network as for Chicken, Sugar, Bread, supplied through awarded to companies owned spent on
incorporated Siqalo (32%) supplied to our mills through small-
brands for major customers Peanut Butter, Maize Flour contract growers by land reform beneficiaries procurement
Foods into our platform scale farmers, community joint ventures
customers in seven * Imperial Logistics South Africa Group and Pet Food (branded and from our community-based through
and long-term land reform partnerships
categories Proprietary Limited’s cold chain business private label) joint ventures B-BBEE
Our impact Our Sustainable Business Drive, framed in the model below,
is aligned to our business strategy and addresses our sixth
strategic thrust – “Drive Sustainable Business”.
1 Nourishing People 2 Enriching Communities 3 Sustaining Resources
More nutritionally creative solutions More socially creative solutions More environmentally creative solutions
1.1 MORE NUTRITIOUS PRODUCTS 3.1 MORE ENERGY SELF-SUFFICIENT
2.1 MORE INSPIRED EMPLOYEES
We will provide more nourishing food, better OPERATIONS
We will build a unique organisation where
value and greater choice to all people – We will invest in energy self-sufficient
work is safe, fun, meaningful and enriching in
educating our consumers on the benefits of a operations and support the generation of
a way that unlocks the potential and creativity
balanced diet. renewable resources at a rate greater than
of more than 20 000 people.
we consume them.
Ambition - To lead the promotion of nutrition
Ambition - To become THE place to work by
with innovative product solutions in the Ambition - To become an energy self-
building a compelling RCL FOODS culture.
context of a balanced diet. sufficient business.
2.2 MORE ECONOMICALLY DEVELOPED 3.2 MORE WATER-SMART OPERATIONS
1.2 MORE NUTRITIONAL THOUGHT
COMMUNITIES We will invest in water-smart operations and
LEADERSHIP
We will drive an inclusive business agenda influence local government and other key
We will strive to become a trusted source of
through land reform and new inter-connected stakeholders for collective solutions in the
influence in food policies, regulation and food
business models. higher risk areas.
labelling development.
Ambition - To become THE trusted business Ambition - To become a water-smart
Ambition - To lead the promotion of nutrition
partner for economic development in the business that continually seeks new ways to
through influencing policy development.
communities in which we operate. reduce, reuse and “create” water.
2.3 MORE SOCIALLY DEVELOPED
1.3 MORE BASIC NUTRITION FOR CHILDREN 3.3 MORE WASTE-FREE OPERATIONS
COMMUNITIES
We will drive awareness of the basic nutrition We will invest in new business opportunities
We will drive social upliftment of our
challenges for children through collaborative that turn our waste into value (through
communities through a dialogue approach –
multi-stakeholder partnerships aimed at circular economy principles), and minimise
understanding their needs and partnering with
addressing nutritional stunting. our waste to landfill.
like-minded organisations to find solutions.
Ambition - To lead the promotion of nutrition Ambition - To become a waste-free business
Ambition - To become THE respected
for children through collective action against that continually seeks new ways to turn
business partner for social development in the
stunting. waste into value.
communities in which we operate.
UNDERPINNED BY NEW DISRUPTIVE MODELS
ACHIEVED AND SUSTAINED BY STRONG WIN-WIN MULTI-STAKEHOLDER PARTNERSHIPS
Social development Economic development
Three years ago we created the DO MORE FOUNDATION as a separate Non-Profit Organisation (NPO) to enable us to increase As a business partner to numerous contract growers and secondary businesses across our supply chain, we play a key role in
the impact of our corporate social investment by partnering with other organisations to DO MORE in three key areas: sustaining livelihoods and driving positive economic transformation. We promote Broad-Based Black Economic Empowerment
young children, hunger and youth. (B-BBEE) through our procurement policies and our supplier and enterprise development partnerships, utilising interconnected
business models to drive win-win solutions for all.
We wanted to bring about meaningful, sustainable change in and beyond the impoverished communities where we operate, and
we knew that this was only possible through well-coordinated collective action by a range of key stakeholders: Government,
We are leading the transformation agenda in our sugar operations through the
Non-Governmental Organisations (NGOs), business and communities themselves. following initiatives:
Some recent highlights include:
Farming and
Akwandze
Community-Based Small-Scale Growers Business Support
Agricultural
Joint Ventures (CBJVs) (SSGs) Services – TSGRO
Our three community- Finance (AAF)
1 200 SSGs supplied 590 • All SSGs benefited from
based joint ventures •Through AAF, the small
000 tons of cane to our TSGRO’s ongoing free
with land restitution scale growers reinvested
mills in 2020, generating extension service
communities in the more than R165 million
R350 million in turnover. • 630 SSGs and seven
into their own operations
#DoMore #DoMore #DoMore
Nkomazi area delivered cooperatives accessed
Continued production is in 2020, through retention
1 million tons of cane TSGRO’s Bulk Water
supported by two 50/50 savings and new loans.
in 2020 - providing Supply (BWS) service,
joint-venture services •In partnership with The
FOR YOUNG CHILDREN TO EASE HUNGER TO SUPPORT YOUTH communities with R43
companies owned by the Jobs Fund, AAF funded
a user pay service
million in lease income, that maintains critical
growers and RCL FOODS: the development of nearly
as well as study and irrigation, and 315 utilised
TSGRO and Akwandze 500 additional hectares
enterprise development its basic accounting and
• 130 000 nutritional Agricultural Finance. of communally-owned
• Over 7,6 million meals opportunities bookkeeping services to
snacks provided monthly donated for COVID-19 land under sugarcane
ensure good governance.
to vulnerable children in relief by October 2020
ECD centres
• 107 418 sandwiches made • 1 million Rainbow Chicken • Six sustainable enterprises Long-Term Land Reform Partnerships
for young children in one meals served to vulnerable were recently established We have developed long-standing partnerships with 12 land reform
hour for World Food Day families for Mandela Day in in Hammarsdale, benefiting beneficiaries whose farms we helped re-establish through the Department
2019 2020 37 young entrepreneurs.
of Rural Development and Land Reform’s Recapitalisation and Development
Programme (RADP). Under our mentorship, the farmers’ business plans
• Provided data-free
• DO MORE Porridge were approved and the DRDLR released R65 million to restore irrigation
online support materials
launched for donation and replant cane on the farms. We continue to mentor all 12 farmers, who
to caregivers during the
purposes at R1 a meal
COVID-19 lockdown supplied nearly 100 000 tons of cane to our mills in 2020.
We are also reaching beyond RCL FOODS to empower individuals through work experience and learnership
opportunities such as:
• The Youth Employment Service (Y.E.S.) programme – providing over 330 unemployed youth with 12-month work experience
contracts in 2019. Of these, 82 have now been permanently employed with us.
• Our new Supreme Siyabhaka Baking Academy for school leavers aspiring to become professional bakers
• Our Sugar learnership for disabled people to achieve an NQF3 National Certificate in Business Administration
Key to Committees
Audit Committee (RV Smither, Chairman)
Board of directors RCL FOODS executive team
Remuneration and Nominations Committee (NP Mageza, Chairman)
Risk Committee (GC Zondi, Chairman)
Social and Ethics Committee (GC Zondi, Chairman)
Alternate to JJ Durand
Non-executive directors CEO
MILES DALLY
Chief Executive
Officer
Jannie JJ Cindy Hess Peter Mageza Penny Derrick Msibi Manana
Durand Moumakwa Nhlanhla
Independent Independent Independent
Non-Executive Non-Executive Non-Executive Independent Non-Executive Independent
Chairman Director Director Non-Executive Director Non-Executive
Director Director
Divisional heads
PAUL CHRIS CREED
George Steyn Hein Carse Pieter Louw GCJ (Kees) Gcina Zondi Paul Neethling CRUICKSHANK Managing Director -
Tielenius Chief Logistics Division
Independent Non-Executive Non-Executive Non-Executive Alternate
Non-Executive Director Director Kruythoff
Director Non-Executive
Operations Officer
Director Non-Executive Director to JJ
Director Durand
Executive directors Functional heads
MILES DALLY ROB FIELD
Chief Executive Chief Financial
Officer Officer
Appointed Appointed Rob Field Trevor Harding Jason Livesey Deena Naicker
Feb 2003 Jul 2004 Chief Financial Chief Information Chief Chief Ethics
Officer Officer Customer Officer & Compliance
Directorships Directorships Officer
RCL FOODS Limited and its subsidiary companies RCL FOODS Limited and its subsidiary companies
rclfoods.com
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