OUR BUSINESS MODEL

Our journey started over three years ago with the restructuring of the Rainbow business and the 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. This gave us a solid foundation from which to expand through the execution of our growth-focused business model.

Both in South Africa and the rest of Africa, substantial opportunities exist to expand RCL FOODS’ market share across 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 highermargin, 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.