Tiger Brands expands to local trade

Tiger Brands, a leading food manufacturer in South Africa, is on a mission to formalize the country's informal market. Garth Fraser, the Route to Market Manager at Tiger Brands, recently discussed the company's strategy with CNBC Africa. Fraser emphasized that Tiger Brands' entry into the informal market is not just about growth for the company but also about providing opportunities for shoppers in these communities. In 2020, Tiger Brands embarked on a journey to understand the availability of its products in the informal market and how it could contribute to nurturing and nourishing lives. With iconic brands deeply rooted in South African heritage, Tiger Brands aims to make its products accessible to shoppers in these communities. One of the key aspects of Tiger Brands' strategy is to partner with businesses in the informal sector to help them grow and sustain their operations. Contrary to the notion that the informal market is disorganized, Fraser highlighted the formalized nature of many businesses operating in these areas. By making products available and employing individuals from within the community, Tiger Brands not only drives affordability but also creates job opportunities for residents. Over the past 24 months, Tiger Brands has successfully expanded its presence to over 46,000 stores in the informal market. The company's goal is to reach 130,000 stores across different categories within the next five years. By enhancing visibility and availability, Tiger Brands aims to ensure that its products are easily accessible to shoppers in these underserved communities. In terms of job creation, Tiger Brands has already generated around 198 job opportunities in the informal market. The company is committed to increasing this number and aims to create around 270 jobs by the end of the fiscal year. By providing employment opportunities for both youth and older individuals, Tiger Brands contributes to the economic empowerment of these communities. The reception of Tiger Brands' products in the communities it has entered has been overwhelmingly positive. By partnering with local traders and branding stores with familiar logos such as Oros and Koo Baked Beans, Tiger Brands has established a strong connection with consumers. The recognition of these iconic brands has resonated with shoppers who have known and trusted them for years. As technology continues to play a pivotal role in business operations, Tiger Brands has embraced innovative solutions to streamline transactions in the informal market. The company has developed a cashless payment platform to reduce the risks associated with handling cash. By leveraging technology, Tiger Brands aims to enhance the safety and security of its employees and associates while facilitating seamless payments in these communities. Looking ahead, Tiger Brands plans to further expand its cashless payment platform and explore collaborations with mobile payment providers to integrate various payment options for customers. The company's commitment to empowering businesses in the informal sector and driving economic development in underserved communities underscores its dedication to fostering growth and sustainability in South Africa's informal market.