Tiger Brands’ expansion into South Africa’s local township economy is gaining swift traction a year after it began accelerating its route-to-market strategy to increase the presence of its products in this booming market.

In 2023, Tiger Brands announced its targeted route-to-market strategy to increase its brands’ presence in at least 130 000 stores in the general trade over the next five years, including spaza stores, mini-superettes, superettes, and min-and midi-wholesalers. Since then, the business has increased its presence and visibility in more than 71 000 stores, up from 50 000 at the end of 2023.

The business expects to reach 90 000 stores by the end of 2024 and is well on track to cover a total of 130 000 stores over a period of five years. As part of its expansion in the informal sector, Tiger Brands offers business solutions to mini- and midi-wholesalers and store owners to help grow the Tiger Brands share of the consumer basket in these outlets.    

According to findings by Trade Intelligence (2022), more than 70% of South African households purchase their grocery and other product requirements within the informal trade. It is a significant market contributing at least 26% or R184 billion of the total R716 billion South African Fast-Moving Consumer Goods sector. The informal market’s growth rate exceeds that of modern trade. 

“We see significant opportunity to grow in the township market by offering consumers affordable quality products that are trusted, sought-after and meet the needs of consumers,” says Ferrini.

Since the launch of its township route-to-market strategy, distribution and availability of Tiger Brands products in this market has increased by more than 90%.

In addition, Tiger Brands is working with customers to create ‘Perfect Outlets’ through investments in point-of-sale marketing execution across the Tiger Brands product basket, as well as branded coolers in stores to improve cold availability of Tiger Brands’ ready-to-drink beverages.