Avi Limited Class Y · JSE:AVI
Avi Limited Class Y — Corporate Update (May 2002)
34 slides from Avi Limited Class Y's corporate update, May 23, 2002
Slide 1: AVI Gauteng Site Visit - National Brands Food Division Presentations
AVI GAUTENG SITE VISIT 23 – 24 May 2002 NATIONAL BRANDS FOOD DIVISION PRESENTATIONS 1
Slide 2: NBL Food Division: Agenda
NBL FOOD DIVISION : Agenda Welcome and introduction Introduction to management Tour and presentation structure Snapshot of Snacks category innovation and excitement Snacks video 2
Slide 3: Biscuits Presentation - Category Vision
BISCUITS PRESENTATION Biscuit Category Vision: “NBL leads with baked snacks that are tasty, exciting and better for you for all snacking occasions.” 3
Slide 4: Biscuits Overview & Brand Structure
BISCUITS OVERVIEW & BRAND STRUCTURE LOCAL MARKET ONLY 44 Brands Split: Sweet Turnover Contribution (27) Sweet 70% Blue Label Marie (17) Savoury 30% 9% Eet Sum Mor 7% MASTER BRAND BAKERS Tennis SUPA BRANDS: 13% Red Label Creams Sweet 48% 52% Eat Sum Mor 7% Romany Creams BLM 2%10% BN Tennis RLC Other
Slide 5: Biscuits Overview & Brand Structure (contd)
BISCUITS OVERVIEW & BRAND STRUCTURE ( CONTD) MASTER BRAND PYOTTS SUPA BRANDS: Savoury 70% Salticrax Pro-Vita Savoury Turnover Contribution Cream Crackers Mini Cheddars Cream Crackers 8% Mini Cheddars 30% Total Supa Brands 55% 15% Provita Salticrax 9% MASTER BRAND BAUMANN’S 27% Snacktime EDLP 11% Oth
Slide 6: Biscuits: Key Category Initiatives
BISCUITS : KEY CATEGORY INITIATIVES Develop macro Snacks strategy Strengthen Supa Brands ATL support Implement demand management Maintain flow of line extensions and new products 6
Slide 7: Biscuits: New Products and Line Extensions
BISCUITS : NEW PRODUCTS AND LINE EXTENSIONS 7
Slide 8: Isando Biscuits: Site Overview
ISANDO BISCUITS : SITE OVERVIEW 8
Slide 9: Biscuits: Statistics
Isando Biscuits : Statistics Construction year : 1957 (Admin & Warehouse) 1967 (1st section of factory) Area : 18 300 m2 Personnel : 289 - Direct : 258 - Indirect : 31 - No. of managers : 9 - Avg years experience : 4,4 Complexity : 68 SKU’s - 39 Recipes oduction Lines : 11 Ovens 2 Assembly Lines Cap
Slide 10: Biscuits: Process Flow
Isando Biscuits : Process Flow Stores Dispensing Mixing Forming Baking Oiling* Cooling Packing Palletising 10
Slide 11: Biscuits: Annual Performance
Isando Biscuits : Annual Performance YEAR VOLUMES KG'000 F1999 14,924 F2000 15,416 F2001 15,454 11
Slide 12: Biscuits: Capacity Utilisation
Isando Biscuits : Capacity Utilisation Line Throughput Capacity Capacity Products Produced Kg/hr Tonnes Utilisation 1 815 4303 98% Marie 2 425 2244 34% Tanner/Ginger Nuts 3 998 5269 39% Eet Sum Mor 4 605 4472* 80% Cream Crackers 5 810 4277 94% Tennis 6 450 3326* 99% Provita Salticrax, Savoy, 7 531 2
Slide 13: Biscuits: Capacity Utilisation (contd)
Isando Biscuits : Capacity Utilisation (CONTD) Line Throughput Capacity Capacity Products Produced Kg/hr Tonnes Utilisation Mini Cheddars, Kips, 8 656 3464 47% Cheese Tangs 10 214 1129 19% Matzos, Water Crackers 11 185 977 27% Boudoir 12 632 3434 19% Snacktime SAA Wheatsworth, 13 174 945 27% Caterpa
Slide 14: Biscuits: High Volume Products
Isando Biscuits : High Volume Products ( > 600 tonnes) 3,500 3,000 2,500 2,000 Tonnes 1,500 1,000 500 - ta ax er is M e ie M im vi nn ES BL ar ck cr o kt M lt i Te ra Pr B/ ac Sa /C Sn C 14
Slide 15: Biscuits: Medium Volume Products
Isando Biscuits : Medium Volume Products (between 100 – 600 tonnes) 600 500 400 Tonnes 300 200 100 - 15
Slide 16: Coffee Presentation - Category Vision
COFFEE PRESENTATION Coffee Category Vision: “To make Coffee a more exciting and relevant beverage, consumed by more people , more often” 16
Slide 17: NBL Coffee: Operating within the R21bn macro-beverage market
NBL COFFEE : Operating within the R21bn macro-beverage*market Non-Alcoholic drinks R21 bn Dairy Fruit Tea CSD’s Coffee Drinks Juices R1.7 bn R10.75 bn R1.9 bn R3.8 bn R2.6 bn Energy Iced Tea Drinks R21.6 m Sources: BMR, BMI & others R230.9 m 17
Slide 18: Opportunities identified through deeper market understanding
Opportunities identified through deeper market understanding • Consumer benefits and needs associated with macro-beverages better understood Coffee = Energy and indulgence 23% 28% 28% 5% 20% 24% 24% Refreshment Energy/ Revitalising Nutrition Fluid 2 research: Research International 2001 Wellbeing In
Slide 19: South Africa positioned to capitalise on developing markets coffee potential
South Africa ideally positioned to capitalise on “developing markets” potential for increased coffee penetration and consumption frequency 2000 PER CAPITA COFFEE CONSUMPTION SWE DE N 9% 1097 SWIT ZE R LA ND 35% 855 GE R M A NY 12% 735 F R A NC E 29% 658 SP A IN 33% 517 IT A LY 4% 478 B R A ZIL 9% 46
Slide 20: The Coffee market segmented according to shopper research
The Coffee market , segmented according to shopper research Coffee category R1.9bn “Affordable” coffees 60% 40% R 664m “Premium” coffees R440m Shopper drivers /segments 9% 51% 25% 15% Affordable brewed Affordable convenience Premium convenience Premium Brewed R100m R564 m R275m R165m Product formats
Slide 21: NBL Coffee: Key Category Initiatives
NBL Coffee: Key Category Initiatives • Three key pillar growth strategy: 1. Master Brand innovation Based on greater consumer and shopper insight 2. Expansion into new markets SADC, Sub-Saharan Africa and other Emerging Markets 3. Channel extension Out of Home Retail 21
Slide 22: Isando Coffee & Creamer: Site Overview
ISANDO COFFEE & CREAMER : SITE OVERVIEW 22
Slide 23: Coffee & Creamer: Statistics
Isando Coffee & Creamer : Statistics Construction year : 1963 (Original Factory) 1995 to (Upgrade of Instant 2000 and Ground Coffee) Area : 41 800 m2 Personnel : 212 - Direct : 173 - Indirect : 39 - No. of managers : 9 - Avg years experience : 8 Complexity : 134 SKU’s 4 Main Products: Pure Ground, M
Slide 24: Coffee & Creamer: Statistics (contd)
Isando Coffee & Creamer : Statistics (CONTD) Process : Coffee Roasters : 2 Coffee Extractor : 1 Chicory Extractor : 1 Evaporators : 3 Spray Towers : 2 Agglomerator : 2 Packing : Pure Ground : 6 Mixed Ground : 5 Instant Coffee : 5 Creamer : 4 Capital Valuation : Buildings R 56.5m (July 2002) Machiner
Slide 25: Coffee: Instant Coffee Process Flow
Isando Coffee : Instant Coffee Process Flow Coffee & Chicory Stores Grinding Extractions Blending Evaporation Spray Drying Agglomeration Packing Transit Bay Warehouse 25
Slide 26: Coffee: Pure Coffee Process Flow
Isando Coffee : Pure Coffee Process Flow Stores Roasting Blending Grinding De-Gassing Packing Transit Bay Warehouse 26
Slide 27: Coffee: Mixed Coffee Process Flow
Isando Coffee : Mixed Coffee Process Flow Stores Roasting Grinding Coffee & Chicory Packing Mixing Transit Bay Warehouse 27
Slide 28: Creamer: Creamer Process Flow
Isando Creamer : Creamer Process Flow Storage Blending Homogenizing Spray Drying Packing Transit Bay Warehouse 28
Slide 29: Coffee & Creamer: Capacity Utilisation
Isando Coffee & Creamer : Capacity Utilisation Line Throughput Capacity Capacity Kg/hr Tonnes Utilisation Coffee 2 500 17 500 32.5% Roasting Coffee 400 2 795 65% Extractor Chicory 300 2 096 86.6% Extractor Evaporators 8 000 L - 100% Spray Towers 1 800 12 500 63.2% Agglomerator 410 2 865 100% Capacit
Slide 30: Coffee & Creamer: Capacity Utilisation (contd)
Isando Coffee & Creamer : Capacity Utilisation (CONTD) Line Throughput Capacity Capacity Kg/hr Tonnes Utilization Pure Ground 830 5 800 19.6% Mixed 2 500 17 400 20.7% Ground Instant 1 800 12 500 58.3% Coffee Creamer 1 100 7 687 91.2% Capacity based on 24 hour – 52 weeks at 80% efficiency 30
Slide 31: Coffee: Instant Coffee
Isando Coffee : Instant Coffee 4000 3500 3000 2500 Tonnes 2000 1500 1000 500 0 750g 250g 100g Others 31
Slide 32: Coffee: Pure Ground Coffee
Isando Coffee : Pure Ground Coffee 400 350 300 250 Tonnes 200 150 100 50 0 Ciro Retail Ciro Other Speciality Kenna 32
Slide 33: Coffee: Mixed Ground Coffee
Isando Coffee : Mixed Ground Coffee 1,200 1,000 800 Tonnes 600 400 200 0 33
Slide 34: Creamer: Creamer
Isando Creamer : Creamer 6000 5000 4000 Tonnes 3000 2000 1000 0 1kg Pouches Jars 34