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Download the Corporate Citizenship Review 1999 ... - SABMiller

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Building <strong>the</strong> Bonds<br />

(CONTINUED)<br />

COMMERCIAL EQUITY<br />

Beer South Africa now has over 2,200 active commercial equity suppliers, worth over US$55 million (R323 million).<br />

Commercial equity suppliers account for 13 per cent of <strong>the</strong> total number, providing 10 per cent of total supplier costs.<br />

Beer South Africa’s tender for its travel business – which<br />

stipulated that <strong>the</strong> company be at least 50 per cent black<br />

• DIVERSITY ▪ SAB ENCOURAGES DIVERSITY WITHIN ALL<br />

THE GROUP’S COMMERCIAL ASSOCIATIONS, PARTICULARLY THE<br />

managed and owned – was won by Seekers-Lesedi Travel.<br />

INVOLVEMENT OF THOSE PREVIOUSLY DISADVANTAGED,<br />

Managing director, David Malakalaka, has a solid background<br />

MINORITIES AND LOCAL BUSINESSES AROUND THE WORLD.<br />

in travel and his partnership with one of <strong>the</strong> leading South<br />

African travel agencies is off to a good start. Seekers-Lesedi operates in-house from Beer South Africa’s head office,<br />

and employs seven consultants.<br />

Thuthuka Packaging is an example of <strong>the</strong> benefits of combining skills and making commercial equity a lucrative<br />

reality. With active support from Beer South Africa, this packaging company has successfully tendered for <strong>the</strong> contract<br />

to print some one billion labels for <strong>the</strong> company during <strong>the</strong> current year, meeting <strong>the</strong> high-quality workmanship<br />

demanded by <strong>the</strong> division. This initial success has led to contracts from o<strong>the</strong>r SAB African operations, including those<br />

in Tanzania, Mozambique and Zambia.<br />

Beer South Africa has conducted extensive trials in <strong>the</strong> Caledon region to increase <strong>the</strong> variety of barley crops<br />

and supply base, and reduce dependence on imports. Initial trial farming has led to established commercial farming<br />

activities for tribal farmers in <strong>the</strong> region, generating much-needed cash flow and, more importantly, jobs in a poor<br />

area. The value of farm produce from <strong>the</strong>se lands exceeded US$370,000 (R2.2 million) in <strong>the</strong> review period.<br />

The farmers receive ongoing technical and training support from extension officers<br />

to ensure <strong>the</strong> sustainability of <strong>the</strong> project.<br />

SEEKERS-LESEDI TRAVEL WON THE<br />

COMMERCIAL EQUITY BARLEY FARMING.<br />

TENDER FOR BEER SOUTH AFRICA’S<br />

TRAVEL BUSINESS.<br />

In Poland, annual supplier agreements contribute to keeping quality standards in place and controlling costs.<br />

Local sources are given preference, providing <strong>the</strong>y meet quality levels. The breweries have an active policy of adding<br />

value to supplier relationships by transferring skills and knowledge, and involving suppliers in new product design.<br />

The yeast beneficiation project in South Africa is based on recovering excess yeast formed during <strong>the</strong> brew<br />

fermentation process, drying it and exporting <strong>the</strong> powder extract to <strong>the</strong> international market. Previously, excess yeast<br />

PAGE TWENTY-SIX

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