KRAFT FOODS TO HIT SWEET SPOT IN AFRICA

JOHANNESBURG (Monday 28 March 2011) – As the company positions itself for  ‘double in five’ growth in an increasingly competitive FMCG market, Kraft Foods South Africa (Kraft Foods SA) is focusing on people development at its Sub Sahara Africa operations to ensure optimum output from investment in new technologies and manufacturing processes.

A pilot programme has already been initiated at the company’s Cadbury Botswana sugar-free gum manufacturing plant in Gaborone. Investment worth R160 million - aimed at increasing volumes and transforming the plant into a world-class African operation - has been ploughed into the former family-owned business.

Johan van Zyl, manufacturing director for Kraft Foods’ Sub Sahara Africa region, comprising Southern Africa, Central East Africa and West Africa - across which nine wholly-owned operations are located - says that employee competency and capability must complement modernised infrastructure.

“We’re marrying the hardware and software - that is, the physical assets with the people and skills - to create a sustainable operation,” says Van Zyl, stating that the Botswana plant has increased its competency level from 9% to 52% over a period of nine months, whilst at the same time output on the existing technology platform increased by 40%.

“This has proved that there is a strong correlation between competence and capability development and operational performance,” says Van Zyl of the gum manufacturer which, with attractive margins and growth rates, is a strategically important category within the Kraft Foods stable.

The people development concept at Cadbury Botswana whose current 186-strong work force  utilises internal assessors to evaluate competence against job standards through formally-defined job outputs, roles and responsibilities, as well as learning aids and objectives.

“It’s a move from acquired competence to applied competence,” says Van Zyl of the training programme that has brought about a 40% increase in plant output through a 25% improvement in productivity and a 30% reduction in costs. 

The Botswana model, which typifies the growth potential that Kraft Foods projects in the Sub-Sahara network of operations, is to be rolled out at other plants where significant investment is being made in transformation programmes. They include South Africa’s Port Elizabeth chocolate manufacturing plant, site of a R750 million investment in capacity and capability technology, and Cadbury Nigeria where a new Bournvita (a fortified chocolate beverage food drink) manufacturing facility is being built at a cost of R350 million at Ikeja near Lagos. 

Investments like these, says Van Zyl are proof of the company’s confidence in Africa. “Kraft Foods SA is committed to creating locally-led sustainable operations that comply with the global company’s rigorous safety and manufacturing practices.  We believe that our Botswana competence development programme is an indication of what we can achieve at our other regional operations, demonstrating that Africa has the potential to produce world-class facilities that can compete in the global market.”