| Differentiation |
Caterplus is the only company in our industry capable of supporting nationally represented customers with predictable, high quality standards of service. We are strategic players in a market subject to tactical incursion by aggressive local competitors that lack the resources to offer complete solutions.
We constantly invest in quality people and modern facilities. As such, we are the only supplier that can assist customers by developing new solutions to key business challenges, including the constant change in consumer tastes, continuing cost pressures and recurring affordability issues in some income groups.
We are a partner as well as a supplier. |
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| New structures |
A series of structural adjustments has been made to address areas of under-performance in some segments of the business. The results of the reorganisation have been positive to date, but benefits will not be fully apparent until 2008.
There were no new acquisitions and no businesses were disposed of. However, several divisional transfers have helped to tighten the focus of our business.
Lufil, the KwaZulu-Natal manufacturer and distributor of paper products, has been re-housed within Bidpaper Plus. Hotel Amenities has moved under the Bidserv banner. Vulcan, the catering equipment manufacturer, is now part of Bid Industrial and Commercial Products. However, some Bidfood operations maintain their position in the equipment and utensil market as high-profile importers and distributors of leading international brands.
Bidbake’s performance has been most disappointing, resulting in changes to the management structure. Two separate management teams have been established, one to run yeast manufacturing operations and the second to manage the bakery ingredient business. As a result, the unified Bidbake identity has been discontinued.
Bidfood Technologies no longer resides within the Crown Foods Group. The unit has been given separate status in view of the growing importance of a strong food technology capability as a source of strategic advantage and will focus on developing products and efficiencies for all production units in the Bidfood Ingredients division.
At Caterplus, a single management team has been made responsible for a merged catering supplies and frozen foods operation. |
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| Training |
| Training investment continues to rise. Training spend per employee rose from R1 171 to R1 337. We supported the managerial aspirations of our top performers by increasing reliance on the leadership courses presented by The Bidvest Academy. |
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| BEE and CSI |
Good progress has been made across the various elements of the BEE scorecard while BEE procurement rose to R764,0 million, despite our more streamlined organisational structure.
Corporate social investment continues to have an educational bias, with special attention paid to food hygiene and nutrition. |
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| Innovation |
Many South African food manufacturers are still committed to irradiation. However, irradiation as a means of controlling spoilage, killing bacteria and destroying pathogens such as salmonella is becoming increasingly controversial and no longer meets European Union standards.
As consumer awareness of the issue grows in South Africa, our proactive investment in steam sterilisation and food safety systems will further differentiate Bidfood Ingredients as a reliable partner that delivers a quality product. |
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| New investment |
| Investment in support of HACCP compliance continues across Bidfood while the national roll-out of the Great Plains IT system at Caterplus is continuing. |
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| Challenges |
| There is continuing need to stay ahead of legislative and regulatory requirements and anticipate consumer concerns in areas such as food safety, quality and hygiene. Bidfood does not regard this as a challenge, but as a potential source of competitive advantage in a market where we are the natural partner of quality-conscious customers. |
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| Future |
| The macro-economic climate remains supportive while remedial action to streamline the business and eradicate areas of under-performance has helped us to build renewed momentum. We are well positioned to achieve further growth in market share and trading profit. |
