annual report 2007

Operational Review

Eric Goldblum
Non-executive Director

Steven Brenner
Managing Director

Brenner Mills

Profile
Over the past 70 years, Brenner Mills has become one of the leading maize millers in South Africa. Brenner’s top maize meal brands are “Shaya” and “Cup Final”, which account for the majority of group revenue. The diverse division consists of the following brands: Magic Rice, E-Rice, Shaya Mabela, as well as a complete range of dried vegetables and pet food, marketed under the Brennco banner. The Brennco Feeds division, situated in Louis Trichardt, produces a range of balanced chicken, game, pig and ruminant feeds.

Period under review

The South African maize market is now fully deregulated. This, coupled with the R/$ exchange rate, has resulted in a constantly fluctuating price of raw material, which has been further aggravated by supply and demand of seasonal crop availability.

Maize comprises at least 80% of any maize mill’s cost structure, and therefore Brenner Mills has adopted a conservative, yet flexible, procurement strategy.

Sales volumes of the leading maize meal brands, as well as the total maize category have increased over the 2006/7 financial year. This can be mainly attributed to a strong marketing drive and brand awareness campaign.

As a prominent player in the maize meal market, Brenner Mills has captured market share of between 11% and 12% of the total domestic market.

In 2004, Brenner Mills started the production, distribution and marketing of rice. These brands have shown tremendous growth, especially in the Gauteng region.

The group operates six production plants, of which three are situated in Limpopo, two in Gauteng and one in the Western Cape. Brenner Mills’ Head Office is situated in Pretoria.

Brenner’s distribution network services the whole of South Africa.

Prospects

With strong customer focus, uncompromising service and premium quality products, Brenner Mills will pursue future sustainable growth as well as profitability.