Download the Corporate Citizenship Review 1999 ... - SABMiller

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Building the Bonds (CONTINUED) COMMERCIAL EQUITY Beer South Africa now has over 2,200 active commercial equity suppliers, worth over US$55 million (R323 million). Commercial equity suppliers account for 13 per cent of the total number, providing 10 per cent of total supplier costs. Beer South Africa’s tender for its travel business – which stipulated that the company be at least 50 per cent black • DIVERSITY ▪ SAB ENCOURAGES DIVERSITY WITHIN ALL THE GROUP’S COMMERCIAL ASSOCIATIONS, PARTICULARLY THE managed and owned – was won by Seekers-Lesedi Travel. INVOLVEMENT OF THOSE PREVIOUSLY DISADVANTAGED, Managing director, David Malakalaka, has a solid background MINORITIES AND LOCAL BUSINESSES AROUND THE WORLD. in travel and his partnership with one of the leading South African travel agencies is off to a good start. Seekers-Lesedi operates in-house from Beer South Africa’s head office, and employs seven consultants. Thuthuka Packaging is an example of the benefits of combining skills and making commercial equity a lucrative reality. With active support from Beer South Africa, this packaging company has successfully tendered for the contract to print some one billion labels for the company during the current year, meeting the high-quality workmanship demanded by the division. This initial success has led to contracts from other SAB African operations, including those in Tanzania, Mozambique and Zambia. Beer South Africa has conducted extensive trials in the Caledon region to increase the variety of barley crops and supply base, and reduce dependence on imports. Initial trial farming has led to established commercial farming activities for tribal farmers in the region, generating much-needed cash flow and, more importantly, jobs in a poor area. The value of farm produce from these lands exceeded US$370,000 (R2.2 million) in the review period. The farmers receive ongoing technical and training support from extension officers to ensure the sustainability of the project. SEEKERS-LESEDI TRAVEL WON THE COMMERCIAL EQUITY BARLEY FARMING. TENDER FOR BEER SOUTH AFRICA’S TRAVEL BUSINESS. In Poland, annual supplier agreements contribute to keeping quality standards in place and controlling costs. Local sources are given preference, providing they meet quality levels. The breweries have an active policy of adding value to supplier relationships by transferring skills and knowledge, and involving suppliers in new product design. The yeast beneficiation project in South Africa is based on recovering excess yeast formed during the brew fermentation process, drying it and exporting the powder extract to the international market. Previously, excess yeast PAGE TWENTY-SIX
was dumped as waste or inefficiently dried and sold. After Beer South Africa conducted feasibility tests, the process was outsourced. Joint ventures were established with the necessary contacts and expertise for exporting end products, generating valuable foreign exchange for South Africa. Similar joint ventures were established in the spent grains beneficiation project, and results to date are most encouraging. ABI now has over 100 commercial equity suppliers, managing contracts worth over US$500,000 (R3 million) per annum. Appletiser’s two major commercial equity suppliers provide company transport for employees and courier services relating to stores and purchasing, at a total cost of US$200,000 (R1.2 million) each year. OUTSOURCING Beer South Africa has a strategic policy of outsourcing services such as distribution. Its pioneering owner-driver programme increased to 215 vehicles or 58 per cent of beer delivered during the year. Outsourcing to former employees is a key component of sustainable wealth creation, given its important multiplier effect. Southern Sun has 235 outsourcing projects, as well as 29 insourced private companies. Southern Sun is actively involved in building capacity with its suppliers, raising standards to the required level and sharing technical training on specific issues, such as Year 2000 compliance. It also uses organisations for the disabled as suppliers where possible, as reflected by awarding the contract for certain guest amenities to a paraplegic community in Soweto. In recent years, a number of successful joint ventures were formed with suppliers, in some cases leading to the establishment of a permanent new company. At 31 December 1998, Southern Sun had outsourced over 2,500 jobs. In Kenya, the core workforce numbers around 200, as many activities are outsourced. These range from cleaning and catering to distribution, and provide approximately 500 additional permanent jobs. Castle Brewing OUTSOURCING IN OUR BROADER AFRICAN OPERATIONS INCLUDES PRODUCT DISTRIBUTION AND CATERING. Kenya sources locally wherever possible, including labels, crowns and other raw materials. In many instances, this requires working closely with suppliers to achieve required specifications and quality. Nile Breweries, Uganda, outsources distribution, using its distributors as sales people in a market where informal outlets account for 85 per cent of the market. Nile assists its distributors in upgrading fleet operations, increasing storage capacity and certain business functions. PAGE TWENTY-SEVEN CORPORATE CITIZENSHIP REVIEW
Page 1 and 2: SOUTH AFRICAN BREWERIES plc C ORPOR
Page 3 and 4: Corporate Highlights DURING THE PAS
Page 5 and 6: Other Beverages The Other Beverages
Page 7 and 8: • Providing service excellence in
Page 9 and 10: In addition, the SAB Group was the
Page 11 and 12: ACCOUNTABILITY AND AUDIT Internal F
Page 13 and 14: Our Company Values, as listed below
Page 15 and 16: REMUNERATION POLICY SAB evaluates j
Page 17 and 18: Training Institute During the year,
Page 19 and 20: GROUP INITIATIVES In South Africa,
Page 21 and 22: Healthcare facilities Occupational
Page 23 and 24: Small-drop deliveries play an impor
Page 25 and 26: esponse from the market. Beer South
Page 27: two years, it was being widely expo
Page 31 and 32: KICK START The Kick Start programme
Page 33 and 34: Appletiser has run the Sunnyside Da
Page 35 and 36: patrons with problem-gambling tende
Page 37 and 38: All breweries have programmes to mi
Page 39 and 40: the highest South African standards
Page 41 and 42: Dreher has prioritised the establis
Page 43 and 44: The cash value added per employee a
Page 45 and 46: SOUTH AFRICAN BREWERIES plc C ORPOR
Page 47: South African Breweries plc REGISTR

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