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"International expansion continues to be our priority," said Peter Matlare, CEO of Tiger Brands on Tuesday, delivering the group's interim results to end-March. "We continue to look for strategic opportunities, and we've said Africa is our area of focus."
Tiger is looking for acquisitions that would complement its existing brand portfolio, such as Crosse & Blackwell which it recently purchased from international group Nestlé.
Matlare said the group planned to leverage on its Kenyan operations through Haco Industries to distribute more of its products in East Africa.
Tiger acquired 51% of Haco, a consumer goods company with licences to distribute branded consumer goods in East Africa, in 2008. That strategic acquisition opened doors for Tiger to distribute some of its food products, including Koo and All Gold.
Matlare said the group has identified "a series" of other brands to export into the region, for instance Morvite, as it adds more into Haco's portfolio in East Africa.
That would require the group to continue improving its supply chains and logistics, such as labeling in languages used in the region.
But the heavily congested Mombasa port remains a challenge, he said.
Matlare said the advantage was that Haco's management, which was retained when the company was bought, knows the Kenyan market and would be able to market the new brands to be exported.
Tiger also owns 75% of Cameroonian chocolate producer Chococam, and has several partnerships in Zimbabwe and Chile, among others.
Over the interim period, the international exports reported a 28% increase in net sales, demonstrating potential for further growth.
- Fin24.com
