Page 1

logo designs

publications

annual reports

advertising

megan barber designs This document is intended to offer a succinct and pertinent introduction – an extended business card but abridged CV to myself as a skilled and experienced graphic designer and businesswoman. I am happy to offer any additional detail you may need and am proud to show my portfolio of work.


For almost the past decade, I have managed a successful design studio under my own name – Megan Barber Designs cc – in Johannesburg, South Africa, and provided designs for a number of blue chip South African corporations. During this time, the studio’s profitability has grown consistently. I am the sole owner of the studio and work alone, outsourcing allied requirements such as copywriting and printing, where necessary. My clients include: The South African Breweries World of Beer The South African Breweries (Alrode Brewing) Kgalagadi Brewing Company of Botswana Richmont International The Da Vinci Institute for Technology Management The Country Club Johannesburg The Parkview Golf Club, Johannesburg The Association of Responsible Alcohol (ARA); Arcus Gibb Consulting Engineers APS PlanAfrika Town Planning The National Occupational Safety Association The Gauteng Economic Development Agency African Defence Systems (ADS) (I am happy to provide contact references).

My work for these organisations has included designs for: Corporate identities Corporate literature (annual reports, marketing literature, posters, magazines etc) Advertising Below the line material (such as promotional clothing, sales material etc) All this has necessitated my direct involvement in: Consulting with clients to determine time frames, budgets and other objectives; Analysing clients’ needs, undertaking research and planning presentation of material; Preparing concepts and illustrations of other visual representation of final material; Submitting designs to clients for approval Preparing notes and instruction for finishing artists to assemble and prepare final artwork for printing, display or electronic use; Reviewing final layouts and suggest changes and improvements through proofing stages; Directing photography and reproduction of illustrations and other graphics. Commissioning and briefing copywriters and liaising with printers and mailing houses.


logo designs publications annual reports

To do this work, I am proficient in the electronic design programmes of Quark Express, Photoshop and Freehand. Proficiency in the designing art has evolved from a three-year apprenticeship with what was, at the time, a leading Johannesburg studio, Graphicor, and thereafter at three other South African studios. I opened Megan Barber Designs in 1999. Success at my own business has demanded design qualities covering:

advertising

Thoroughness and meticulousness Ability to work quickly and under pressure Ability to meet deadlines, Ability to offer a wide range of styles rather than just one, personal approach; Ability to adhere to the creative brief and other client guidelines Excellent knowledge of design and typography.

At a personal level, I am: Friendly, hardworking, a perfectionist, accommodating, co-operative and committed. My personal interests include all facets of art and design, birds and other wildlife, and personal psychology. I was born and grew up in Johannesburg, South Africa and completed my schooling there before traveling in the United Kingdom and Europe for three years. Since my return, I have lived in Johannessburg, where I own my own home. I have also traveled on numerous occasions to Australia, where I have a married sister, a niece and nephew. I am aged 42, single and in good health.

megan barber designs


C U L L I N A N


INDUSTRIAL


COUNTRY ESTATE Stylish living in space and tranquility


Issue 1. February 2008

GETTING GOOD IDEAS OFF THE GROUND Inside: TT100 Awards 2007


Introducing Edge Good ideas must benefit economy, says Dr Phil Mjwara SA Experiment will transform service delivery Technology Top 100

An MSc in the Management of Technology and Innovation, takes today’s business manager into the beyond. It’s essential to every manager, of whatever qualification or position in the company; crucial to students seeking increased business competence; the very essence of achieving competitive supremacy globally.

visit www.davinci.ac.za

Technology Top 100 winners Altech Netstar’s vehicle tracking ideas

2 4 6 8 11 12

DebTech ready to share its know-how

16

ATE flies high in new thinking

18

Accsys makes sure people really are ‘most important assets’

22

PFK Electronics takes its security innovations abroad

24

Altech moves into broadband

28 30

Innovative protection for hot water geysers Young entrepreneur captures eye-care market

34

New platinum moulding technology aids jewellery industry

38

New bone graft material ready for surgeons

40

Technology combats stress

42 44

How to read employees’ minds

content

perfect for everyone with bright ideas

You’re holding a new magazine intended for readers with a commitment to developing technology, innovation, people and systems thinking in South Africa. It’s a venture between the Mail & Guardian and the Da Vinci Institute for Technology Management, South Africa’s foremost private higher education institute. Edge will offer readers an insight to the latest trends, developments and thinking in the management of technology, innovation, people and systems, in a bid to foster the empowerment of organisations and the extension of individual potential. It will also offer readers valuable, usable information developed by the enterprises recognised as South Africa’s Technology Top 100. Edge will be pubished quarterly.

The Da Vinci Institute for Technology Management (Pty) Ltd - Registered with the Department of Education as a private higher education institution under the Higher Education Act, 1997. Registration Certificate No. 2004/HE07/003 edge february 2008 | 1


SCENE SETTER

business decisions in the complex world of technology goes way beyond financial justification to

A MAIL & GUARDIAN PUBLICATION, PUBLISHED BY M&G MEDIA LIMITED, GROSVENOR CORNER, 195 JAN SMUTS AVENUE, ROSEBANK, JOHANNESBURG, 2196. TEL:

011 250 7300

EDITOR: Neville Barber

ASSISTANT EDITOR:

Learn what the smart thinkers are thinking Success for people and businesses in today’s world demands cutting-edge international thinking on managing organisations.

Sue Purbrick

Edge is intended to expose you to the

At Da Vinci we believe we

Hana Schneeberg

ideas, mindsets and approaches of

understand the business world; we

011 250 7416

some of the world’s smartest thinkers

have pioneered new thinking around

Diane de Bruyn

in their management of technology,

the human-technology interface and,

innovation and people.

through our collaborators and our

Welcome to this, the inaugural issue.

industrial, research and academic

Edge will carry news, interviews and

associates, we bring a spectrum of

case studies, in the hope that readers

best-of-breed offerings to operations

will learn something from them, be it

striving to be globally competitive.

profound or just a neat new way of

Our cutting-edge thinking in all

doing things, and be able to apply

aspects of technology management

it to their advantage in their personal

and our high-level think tanks

lives or businesses.

are catalysts for action both by

Its focus is sharply on Technology,

governments and by leading

Innovation and People. The magazine

industrialists.

comes to you jointly from:

Several convictions are integral to

ADVERTISING:

011 250 7328

DESIGN AND LAYOUT: Megan Barber Designs

The Da Vinci Institute, an

our ethos.

the realms of the triple bottom line, short-term obsolescences and much else. South Africa’s uniqueness, history and innovative mindset among all its people have earned it recognition as a leader in technology management. Navigating an operation through the complexities of the modern business environment demands an ability to move away from Newton’s world of “either/or” to the notion of “both/and”. As technology increasingly permeates virtually every move by globally successful organisations, managers’ exposure to the essence of the technology management grows ever more critical. Our sincere hope is that Edge will

Revealed: South Africa’s top technology companies As you’ll read alongside, Edge exists to expose the ideas and approaches of smart thinkers in their management of technology, innovation and people.

prove valuable to minds that seek to

Publication of this, the first issue, coincides with the announcement of the

grasp the ubiquitous impact of

Technology Top 100 companies, under the auspices of the Department of

technology, innovation, people and

Science and Technology.

systems, to foster understanding of the issues facing those who develop technology and those who use it.

What’s known as the TT100 is South Africa’s foremost business excellence awards programme, acknowledging with fanfare the success that today’s businesses enjoy through their development and use of technology.

Professor Roy Marcus CEO of Da Vinci Holdings

More importantly, the awards honour these organisations for the value their use of technology brings to the South African economy.

international centre of excellence in

As technology becomes more

Whether they’re small, medium or large businesses, or technology

the field of technology management

pervasive, no manager in any

organisations such as science councils and universities, the TT100 are the

operation irrespective of training or

enterprises that optimise technology to maximise profits, gain market share,

position - can contribute adequately

create niche markets and add value for their stakeholders.

and innovation, where we pride ourselves on a development model founded on international best practices; and •

The Mail & Guardian.

2 | edge february 2008

to business performance without

Edge is proud to reveal, from page seven, details of their achievements.

appreciating the fundamentals of managing technology. Making

edge february 2008 | 3


INTERVIEW

‘Innovation must impact on the economy’Dr Phil Mjwara

The plan proposes that innovation be

raw material for titanium and we

public side of innovation is only

seen as a national competence and

know that there are a number of

slowly beginning to get organised.

recommends several instruments to

South African and international

Universities and science councils are

make it so.

aerospace companies seeking titanium

not yet optimising the system.

One of these is a Technology Innovation Agency (TIA). “It’s a funding and enabling agency,” Mjwara explains, “to ensure that

Department of Science and Technology. “The Department’s 10-year plan, recently published, makes it clear that

be done to ensure we have capacity to process titanium and manufacture

“We know that there is a lot of innovation capacity in the private sector but we need to link it to our public research institutions. The private sector and the public research

aircraft components from it.”

institutions need to start defining

centres through which universities

Through the TIA and competence

joint research agendas.”

and research institutes can work with

centres, the Department is trying to

Another important challenge for the

the private sector to conduct research

make funds available to identify, with

system, he adds, is its lack of enough

towards a specific solution that

the private sector, initiatives more

researchers, technologists and

benefits the parties involved.

widely related to the industrial policy

engineers. “But we are slowly putting

developed by the department of Trade

mechanisms in place to address this.”

“Take information security as an example,” he says. “Universities are doing a lot of work

difference to the economy, whether

on information security. We know

and Industry. “The ‘economic cluster’ is doing

“The Department of Science

detailed work now to develop an

& Technology is extremely

that means improving competitiveness

there are many private sector

implementation plan,” Mjwara says.

happy to be a partner of the

in the private sector or improving

companies doing the same. But they

The department hopes the private

TT100.

quality of life generally,” he says.

are not talking to each other. “We

sector will look at the detail of the

believe we can define centres where

“As many people may be aware,

industrial policy to pinpoint areas

all parties can work together and

we have begun the process of

needing attention and work with the

identify the challenges the country

introducing tax incentives for

Department of Trade and Industry to

faces, and can create information

Research and Development

take advantage of the instruments the

security products for the internet,

(R&D).

Department of Science and

computer networks and software in

Technology is putting in place.

the department, and for the first time moves away from science and technology exclusively to other innovation-related outputs, like the number of high-tech companies or yields, and the contribution science

The country, of course, also has a

and technology make to the “technology balance of payment”.

“Publicly funded research institutions could then be sure they have a research agenda linked to private sector needs.”

“Our system must relate to these and contribute to them. These are the indicators of our contribution to the economy,” he said.

He also cites the addition of value to titanium. “South Africa has an abundance of

“Companies who invest in R&D can claim a tax rebate of

general.

“knowledge workers” the system

4 | edge february 2008

and Mintek, are working together

real economy.”

we need to define outputs that make a

The plan sets out outputs proposed by

Dr Phil Mjwara, Director General of the Department of Science & Technology.

innovation part of their activities.

private sector companies on what can

government-funded competence

Phil Mjwara, Director General of the

Energy Corporation of SA, the CSIR

institutions find their way into the

to bring benefits to the economy.

an impact on the economy, says Dr

departments to make technological

and trying to form partnerships with

The TIA, he adds, will create

“We also need other government

“Three science councils, the Nuclear

outputs of our public research

It’s time for South Africa’s good ideas

Innovation makes sense only if it has

products.

150% on the money invested.

National System of Innovation, recognised as a major policy system that has won the country commendations for its vision.

“We have had all the necessary negotiations with SARS, and the arrangement is ready for implementation this year.”

“But it is not yet where we want it to be,” says Dr Mjwara. “We have

Dr Phil Mjwara.

elements of a national system but the

edge february 2008 | 5


NEWS

the Belgian model, is designed to address the unique challenges facing

SA Experiment promises to transform service delivery The South African Experiment,

The innovative South African

a strategic intervention expected to

Experiment was launched by Deputy

have major positive implications for

President Phumzile Mlambo-Ngcuka

the country, is soon to involve the

to a select group of South African

country’s public and private sectors

executives, government officials and

in an initiative to boost sustainable

media last year.

economic growth.

Apart from addressing South Africa’s

“South Africa’s aim of delivering

current economic growth challenges,

memorable customer service to the world in 2010 calls for an urgent, robust plan to transform the

the experiment will go a long way towards: •

country’s service culture,” says

shrinking the gap between the

“The experiment is the ideal platform to engage the private and public sectors in this objective.”

on outputs identified in the ASGISA initiative.”

‘Innovation must impact on the economy’ From page 5

Five ‘grand challenges’ constitute the Department of Science & Technology’s major objectives for 2008. •

Finding an appropriate energy mix for South Africa.

Improved understanding of climate changes and its impacts.

Use of space technology to improve climate crop management and

The programme will also engage

The National Advisory Council on

key academics from historically

Innovation (NACI), close to 10 years

disadvantaged universities.

old, has revealed a lot about what

Use of biodiversity to balance conservation with commercial gain.

works and what doesn’t, and has

Human and social dynamics: how society needs to adapt to

“The role of these universities has been underestimated,” says Marcus. “They need to be elevated to become

offered advice on innovation in a

globalisation and the new world order.

broader sense.

dominant centres of excellence that

Mjwara says the department is

attract people from urban areas and

evaluating and assessing whether its

create powerful regional economies.”

mechanisms are right for it.

The experiment will involve Dr Yuri

“Should we perhaps let the NACI

Boshyk, the leading international

report to a different structure in

authority on “business driven action

government, because it could advise

learning” and architect of the

equally effectively on issues about

“Global Learning Forum”.

schooling systems, trade or business

Phase one will be directed at service.

environmental health.

enterprise and similar disciplines outside science and technology?

“There is an inextricable link between •

Technology Management, which is sponsoring the experiment.

to enhance GDP growth by focusing

private and public sectors;

Professor Roy Marcus, chairman of The Da Vinci Institute for

this country,” says Marcus. “It aims

INTERVIEW

stimulating a ‘can do’ mindset

a nation’s competitive advantage

among South Africans; and

and its ability to embrace service

creating capacity at historically

quality,” says Marcus. “Service quality is paramount to the

institutions.

success of our economy, but we’re

learned from the “Belgian Experiment” in 1968, which stimulated Belgium’s GDP growth by 3%. It included interventions such as sixmonth “job swaps” between senior public sector officials and private sector executives. They were placed in unfamiliar environments and trusted to develop appropriate strategies to address various challenges.

been extended to the end of next year, and the department intends to distil the recommendations of the

disadvantaged tertiary educational

The experiment will draw on lessons

The term of the current NACI has

simply not delivering. A recent Accenture report “Leadership in Customer Service” released last June,

Organisation for Economic Co-operation and Development’s review, one of which was that the NACI could report through different structures.

ranked South African government service as the lowest in the world.

“Unfortunately, these things cannot be done in one swoop. We have to

The launch of the experiment followed a high-level “think tank”

make a case to cabinet. That is what we will do this year.”

last October, led by a group of senior doctorate students from Da Vinci, and attended by private sector executives and senior government officials.

“The experiment, while founded on 6 | edge february 2008

edge february 2008 | 7


SECHABA BREWERY HOLDINGS LIMITED

Sechaba Brewery Holdings Limited (Registration number co 5271) Corner Kubu Road and Nelson Mandela Drive, Broadhurst Industrial Estate, Gaborone, Botswana. PO Box 631 Gaborone, Botswana. Telephone: 395 3619 • Telefax: 390 1447 • Email:birkholtzd@kbl.bw

Designed and Produced by Megan Barber Designs

taking new routes to improvement

ANNUAL REPORT 2003


1

profile of sechaba

contents

Financial highlights

1

Mission, values & strategy

3

Chairman's statement

5

Operating review: Kgalagadi Breweries (Pty) Ltd

9

Botswana Breweries (Pty) Ltd

13

Corporate governance

15

Corporate Social Investment

17

Directors' report

18

Auditors’ report

21

Income statement

22

Balance sheet

23

Statement of changes in equity

24

Cash flow statement

25

Accounting policies

26

Notes to the financial statements

28

Appendix A: Consolidated Financial Statements

Sechaba Brewery Holdings Limited is an investment holding company with interests in two operating companies: Botswana Breweries (Pty) Ltd and Kgalagadi Breweries (Pty) Ltd. It holds 60% of the shares of these two companies. A subsidiary of SABMiller plc, holds the balance. SABMiller also has management control of both operating entities in a partnership, dating back to 1977, that successfully combines the management, technical and brand-building expertise of the world's second largest brewer with a number of local and international investors. Employing 1 040 people, the two companies are represented throughout the country. They have four traditional beer breweries, a clear beer brewery, a carbonated soft drinks production plant and six sales and distribution depots. The mission, values and strategies of the broader SABMiller Group, tailored to the needs of the Botswana market, are firmly entrenched in each company.

financial highlights

Turnover grew by 5.9% over prior year.

Operating profit up by 12.4% from P227.5m to P255.6m.

Comparable earnings per share increased by 3.4% to 90.5 thebe.

Headline earnings on a comparable basis up 13.3%.

Total dividend for the year amounts to 120 thebe per share.

Final dividend proposed is 63 thebe per share.

31 MARCH 2003

31 MARCH 2002

Sales (Pm)

774.6

731.1

Operating profit (Pm)

255.6

227.5

Effective tax rate (%)

16.8

12.5

Earnings per share (thebe)

90.5

87.5

Headline earnings per share (thebe)

96.3

84.9

Normal dividends per share (thebe)

91.0

81.0

Special dividend per share (thebe)

29.0

0

stock exchange performance*

31 MARCH 2003

31 MARCH 2002

Enterprise value (Pm)

954

1,033

Enterprise value per share (P)

7.17

7.77

7.8

8.45

1,038

1,124

Price earnings ratio

8.3

10.5

BSE average P/E ratio

9.3

13.1

Dividend yield

14.9

11.6

BSE average dividend yield (%)

7.91

5.0

Income statements

32

Share price (P)

Balance sheets

33

Market capitalization (Pm)

Statements of changes in equity

34

Group cash flow statements

35

Accounting policies

36

Notes to the Group financial statements

* Figures provided by the Botswana Stock Exchange

40

Group cash value added statement

50

Shareholders' information

51

(consolidated)

SECHABA BREWERY HOLDINGS LIMITED

SECHABA BREWERY HOLDINGS LIMITED


3

Many initiatives instigated both internally and externally in line

mission, values & strategy

with the on-going commitment to seek improvements through change, achieved a welcome measure of success in protecting volumes and improving efficiencies.

Sechaba Kgalagadi Breweries Botswana Breweries

initiatives

MISSION To be Botswana's leading beverage

VALUES •

We adopt a results-driven approach to doing business.

We are committed to continuous improvement.

Our people are our greatest asset.

We are proud of our country and committed to its success.

We respect the communities and societies in which we operate.

STRATEGY Our primary focus is to create long-term shareholder wealth by: •

company by any

traditional beer, clear beer and carbonated soft drink beverage market segments;

measure, and, in so doing, create

maximising the profitable volume growth of our core

using our well-developed and sophisticated technical and distribution infrastructure to compete profitably

sustainable and

in other complementary beverage categories;

substantial wealth for all our

excellence, to implement the continual improvement

stakeholders,

programmes that have been applied successfully by SABMiller's beer and soft drinks operations, so that we

including the

improve productivity, efficiency, cost control and

societies in which we operate.

focusing on our core competence of operational

operating margins; •

investing in our broad range of powerful brands by using the entire marketing mix to retain our relevance to consumers and our market place dominance;

developing our people's capabilities through training and development, so that they can thrive in an open, transparent and empowering work environment;

playing an active role in the broader community as a responsible, caring corporate citizen.

SECHABA BREWERY HOLDINGS LIMITED

SECHABA BREWERY HOLDINGS LIMITED


5

The success of various operational changes was reflected in the

chairman’s statement

group’s performance, in the acclamation of Kgalagadi Breweries as SABMiller International's best

Sechaba Brewery Holdings Limited performed

brewery in Africa, in its consistency

commendably during a year in which extremely

as leader in beer taste profiles,

volatile economic conditions presented numerous

and by the industry award won

challenges for both its operating companies.

by the Beverages Division for its quality and sales achievements.

acclamation

Despite a downward trend in the Consumer Price Index over the past five years, Botswana's inflation has been severely affected by the introduction of Value Added Tax in July 2002. Pressure on consumer spending was further compounded by volatile international oil prices, rising food prices and exchange rate weaknesses. After exceptional growth in the first three months of the year, Kgalagadi Breweries’ sales volumes of clear beer for the year ended virtually flat, whilst carbonated soft drinks increased by 3% for the year.

The government's announcement of a freezing of public sector salaries placed additional strain on consumer spending, leading ultimately to negative sales growth in the final quarter. Significant expansion of the retail sector in both Gaborone and Francistown, exposing consumers to a wide range of high-value imported goods widely offered on credit, caused further shrinkage of the disposable income available for the group's products.

The 7% decline in

Botswana Breweries’ Chibuku sales resulted in overall volumes decreasing by 3.4%. Fulfilling its commitment to changing for the future, the company improved its headline earnings by 13,4% and the dividends declared for the year amounted to 120 thebe per share, (which includes a special dividend of 29 thebe) an increase of 39 thebe. Operating profit showed commendable growth of 12.4% despite the adverse conditions and our strategy to increase wholesale pricing only by an average of 5.6%. This performance was driven largely by improved efficiencies, re-structuring of the companies’ operations and the strategic positioning of their brand portfolio.

SECHABA BREWERY HOLDINGS LIMITED

As the economy felt VAT's ripple effect, inflation increased from 7% to more than 12%, placing further pressure on consumer spending through excessive retail pricing, and elevating beer into a new price bracket beyond the reach of many lower-income earners in the market.

Sales volumes were further affected by the traditional peak period over Easter falling outside the year under review. Over several decades, sound financial management has enabled Botswana to enjoy high economic growth rates, distinguishing it from many other African countries. However, diamond production and the consequent exports that supported government revenue, and the accumulation of foreign exchange reserves, reached a plateau during the year. The country also faced a growing humanitarian crisis as its population became increasingly threatened by the high incidence of HIV/AIDS. These factors, and slow progress on economic diversification away from diamonds, pose a growing threat to the country's future macro and socio-economic well-being. Additional aggravations to the economy were the debilitating effects of the worst

SECHABA BREWERY HOLDINGS LIMITED


6

chairman’s statement

drought the country has experienced for 40 years, and an outbreak of foot and mouth disease, initially in September and then again in December, which impacted seriously on the country's meat industry, the country's second largest GDP contributor. It was against this background, and the challenges posed to Kgalagadi Breweries’ (KBL) and Botswana Breweries’ (BBL) profitability, that a number of projects were initiated, both internally and externally, in line with these companies’ on-going commitment to seek improvements through change: •

Greater functionalization within the group, creating specialist technical, sales and distribution disciplines, enabled them to achieve meaningful synergies, market focus and efficiencies. Expansion of warehousing improved distribution, while restructuring of the credit department and a new credit policy brought a measure of stability to the market.

• Promotional efforts for beer and carbonated soft drinks by a dedicated special events team, improved soft drinks sales and reduced the negative impacts on beer sales. •

An investment in new technology brought beneficial improvement to information management throughout the organization.

KBL and BBL also participated actively in the proposed amendment of the current Trade and Liquor Act, which seeks to introduce a separate Liquor Act during 2003. They submitted comments on the Liquor Bill and supported public awareness through road safety campaigns and seminars. They also funded a visit by an internationally renowned expert from Australia on alcohol legislation. prospects

The success of these measures was reflected not only in group performance but in the industry award won by Kgalagadi Beverages, a division of KBL, for its quality and sales achievements, and in the acclamation of KBL as SABMiller Africa and Asia's best brewery. The group changed the name of The KMS Trust to The Breweries KMS Trust and re-committed it to a sharper focus on national road safety and the continuing fight against HIV/AIDS in Botswana.

Extending its project 'Tshelang', which means "life", KBL and BBL again allocated funds to communicate and improve the understanding of AIDS among employees, via workshops and poster campaigns, training of peer educators and counsellors. In addition, the company introduced a programme to supply free anti-retroviral drugs and condoms to all employees. Finance was provided for new clinics, the appointment of a dedicated doctor and the establishment of a Life-Threatening Diseases Committee to direct its efforts to combat all manner of medical risk to employees.

The short-to-medium-term outlook for the Botswana economy depends largely on global demand for diamonds, which remains uncertain in the light of external global crises.

7

chairman’s statement

monetary and fiscal policies. Despite the negative external environment and structural deficiencies in the domestic economy, growth is expected to recover in 2003 and 2004, supported by gradual global economic recovery and higher expected levels of government expenditure. I am happy to report, that Sechaba Brewery

Negotiations between KBL and the Commissioner of Taxes over the treatment of taxes and penalties beyond the 1996 tax year are still continuing and the company’s provision for this remains in place. Finally, I express grateful thanks to management and the Board of Directors for their dedication to the sustainable growth of the business.

Holdings Limited is well positioned for the challenges of the future. All the structures for sustainable prosperity are in place and commitments to capital investment are limited. However, trading conditions are expected to remain difficult and KBL and BBL will need to act conscientiously and astutely towards the increasing challenges of anti-alcohol lobbying and calls for restrictions on our products. From a sales perspective, these companies will enjoy the beneficial effects of an Easter period during the year ahead. They will be further boosted by an increase in government spending prior to elections in 2004, which will re-energise the economy, especially in the latter part of the year.

E.W. Komanyane

Global economic conditions are expected to continue the recovery that began in 2002, but the pace of it remains uncertain, and the levelling of diamond production bodes ill for short-term economic growth. While government efforts to diversify the economic base have yet to pay off and the economy remains susceptible to external shocks, the government is pursuing sound

SECHABA BREWERY HOLDINGS LIMITED

SECHABA BREWERY HOLDINGS LIMITED


9

Improved sales forecasting and more effective routing and scheduling of delivery trucks,

operating review kgalagadi breweries (pty) ltd for the year ended 31 March 2003

achieved productivity gains,

Kgalagadi Breweries (Pty) Ltd, (KBL), the clear

while warehouse space

beer and soft drink manufacturer and distributor,

utilization was maximized.

performed well, despite the impact of economic pressure and the exclusion of Easter trading.

productivity

Operating profit improved by 13.7%, with margins improving significantly as a result of productivity improvements, the restructuring in the organization and the positioning of Hansa Pilsener as a premium brand.

category. Sparletta enjoyed phenomenal growth on the back of support from Iron Brew. Fanta grew as a category with the launch and exceptional consumer acceptance of Fanta Pineapple. The performance of BIBO was disappointing, with minimal growth on last year's volumes and signs of consumer resistance to the current packaging. The company is looking at opportunities to use the production capacity to exploit niche markets and launch new variants.

Total sales volumes were 0.8% positive, despite negative economic influences, with clear beer improving its share of the total liquor market.

Sales of beer in the

Improvements to the packaging of KBL's flagship brand, St Louis Lager, reinforced its standing as the country's leading beer brand. Its continued growth, and an increasing consumer preference for cans, contributed to gains in margins in our brand/pack portfolios and won additional market share for St Louis. The development of a new marketing campaign for television, introduced in prospect of a terminated signal from South Africa and threatening lack of above-the-line exposure, reinforced the ability of local brands to combat sales of imported beers. Some 62% of KBL sales are now local products. The Alcoholic Fruit Beverages (AFB) portfolio was disappointing, with Redd's declining and Fusion making little impact despite significant marketing and promotional support. Coca-Cola maintained its position as market leader in the Carbonated Soft Drinks (CSD)

SECHABA BREWERY HOLDINGS LIMITED

750ml returnable bottle showed pleasing growth, as did sales of CSDs in PET packaging, but a significant shortage of glass during the year led to a decline in sales of returnable bottles. Major advantages were derived during the year from the rationalization of the business into a more efficient and market responsive organization to optimise potential synergies between the Kgalagadi Brewery and Coca-Cola plant. The functionalization brought benefits in management effectiveness, sales and marketing specialization, staff development, productivity enhancements, planning/ forecasting and customer service ethics. Re-definition of management structures, and the creation of dedicated technical, sales and marketing, and operational divisions to manage the total KBL operation, achieved two critical improvements:

SECHABA BREWERY HOLDINGS LIMITED


every bubble tells a story! come in and hear them


albert einste i n 1879 - 1 9 5 5 scie nt i st nobe l pri ze wi nne r

i f he’d been a b i t yo u n ger h e ’ d h ave been a n alu mn u s An MSc in the Management of Technology and Innovation, takes today’s business manager into the beyond. It’s essential to every manager, of whatever qualification or position in the company; crucial to students seeking increased business competence; the very essence of achieving competitive supremacy globally.

I N S T I T U T E

+27 11 608 1331

v is it w ww. d a vi nc i . a c . za

Megan Barber  

company portfolio

Advertisement