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Divisional
Review –
CONSUMER HEALTHCARE |
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| Objectives
achieved for 2006 |
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Achievement
of turnover and profit objectives |
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Continued
brand renovation and innovation |
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Business integration
to maximise synergies |
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| Objectives
for 2007 |
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A step change
in innovation rate |
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Drive turnover
growth and achieve profit objectives |
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| Consumer Healthcare |
| The Consumer Healthcare
business has delivered annual compound two-year
sales growth of 9% and EBIT growth of 30%,
and achieved its objective of improving
margins. While all categories have shown
good growth, the homecare and babycare categories
performed particularly well. |
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| Personal care |
| The sales performance
of personal care at first glance appears
pedestrian. However, a strong performance
from the core brands is masked by the aggressive
rationalisation of underperforming brands
in the portfolio in order to achieve greater
focus and less complexity. |
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| Contribution
to group |
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Noteworthy performances were recorded
by several popular consumer brands. Share gains on Ingram’s
Camphor Cream and Mousson strengthened Tiger’s
second position in the Hand and Body Care market. Dolly
Varden retained its status as the market leader in glycerines,
while Lemon Lite strengthened its second place volume
position in Face Care. Several brands were relaunched
in the personal care portfolio, reinforcing the group’s
reputation for innovation. New advertising and promotional
campaigns were developed to support Ingram’s,
Dolly Varden, Lemon Lite and Eulactol.
Highlights of 2006 include market recognition for Ingram’s
and Lemon Lite in the Markinor Sunday Times Top Brands
survey. Eulactol was voted top brand in the Foot Care
Creams and Soaks category in Shape Magazine’s
reader survey.
The acquisition of The Designer Group, effective 1 October
2006, will double Tiger Brands’ personal care
interests.
In the new financial year, growth in the core brands
will be driven by innovation in existing and new categories,
supported by the appropriate marketing investment. |
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| Product
innovation |
Increased demand
for Purity cereals
has resulted in the installation of
a new, state-of-the-art drum drier,
which will allow for further sales
and
market share growth. |
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| “The growth of the Doom brand
has resulted in an increase in Tiger’s share of
the Pest Control market.” |
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| Homecare |
The growth of the Doom brand has
resulted in an increase in Tiger’s share of the
Pest Control market. Jeyes achieved a 3% volume growth
driven by the liquids, fluids and ‘in the cistern’
segments, while Airoma’s strong 16% volume growth
performance was driven by a focus ClassiClean on customer
activity.
The integration of the ClassiClean business has been
successfully achieved in the first six months following
the acquisition. Bio-Classic, the flagship brand in
the portfolio, has been relaunched and repositioned.
To complement this, various new products have also been
launched under the Bio-Classic brand – a regular
automatic washing powder, fabric conditioners and an
aerosol pre-wash application. |
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| Babycare |
The Babycare category consists of
Baby Nutrition and Wellbeing.
Purity continues to reflect a strong performance in
Baby Nutrition. Both jarred baby food and cereals have
shown double-digit growth, driven by ongoing innovation
and the targeting of mass market eating trends. Purity
cereals have reached an all-time market share high and
Purity Cream of Maize is listed as the number 1 infant
cereal in South Africa. Increased demand for Purity
cereals has resulted in the installation of a new, state-of-the-art
drum drier, which will allow for further sales and market
share growth.
Leading brands in the Baby Wellbeing portfolio are Elizabeth
Anne’s, Telament, Teejel, Vidaylin and Phipps.
A good performance was achieved, with innovation being
a key contributor. Elizabeth Anne’s new Sun Smart
range is the first Baby-specific Sun Care range approved
by CANSA (The Cancer Association of South Africa). The
Baby Wellbeing category has shown volume growth in excess
of 10%, with particularly good performances from Elizabeth
Anne’s and Telement, producing volume growth of
over 14% and 19%, respectively. Vidaylin packaging has
been revamped and remains the number 1 paediatrician
choice in vitamin supplementation for babies.
Personal, baby and homecare remain highly attractive
markets with positive growth rates. Industry rivalry
remains intense, which places demands on innovation
rates, speed to market and ongoing cost management.
Sustained investment in our brands and a customer-centric
focus will be key to continued success.
The longer-term strategy for the Consumer Healthcare
business is focused on extracting further synergistic
benefits, bedding down acquisitions and capitalising
on opportunities to move into adjacent categories. |
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