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CREATING VALUE THAT MATTERS

RCL FOODS is home to over 30 household brands, from Nola Mayonnaise to Yum Yum Peanut Butter and more. But while we have many market-leading brands, we’re not taking anything for granted – and we know that we’re operating in a tough business environment.

“Consumers are struggling with high inflation, and they’re looking for products with a great value proposition,” says Andre Mahoney, Managing Director: Groceries & Spreads. “We call these products our ‘value players’ – they’re good and affordable. We’ve seen tremendous growth in this part of our business.”

That growth has come despite some operational headwinds, and it’s been achieved through proactive problem-solving by the team.

“Loadshedding has been a big challenge, especially for our Randfontein Groceries plant,” says Andre. “We installed five 1.8-megawatt generators at the plant in May 2023, and we’ve seen a significant recovery in terms of production. Working with generators comes at a cost, but it’s far better than not producing at all.”

Other input costs are also up. “Ingredients and packaging cost more now,” says Andre. “It is very hard not to pass some of that cost onto the consumer.”

As the Groceries & Spreads business unit looks to the future, its biggest focus is on sustainability. “We want to build a long-term sustainable business,” says Andre.

“Often when you use that word – sustainability – you’re thinking about the environment. But for us, it’s more than that. We want a business that delivers year-on-year and is a consistent performer within the RCL FOODS stable, while meeting people’s needs.”

Food security is central to that. “There’s no way that South Africa can rely on importing food at dollar or euro prices,” he says. “We must produce locally.”

This helps to achieve two things, he explains. One is job security for RCL FOODS’ employees; the other is food security for our communities.

“We make excellent products and we care about the consumers for whom we make those products,” he concludes. “That’s how we grow. We’re growing our business, we’re growing our people and we’re growing food security for many South Africans.”