Annual Integrated Report 2019

Intellectual capital Intellectual capital Angliss Asia , having suffered the loss of a signi cant brand, has successfully introduced substitute brands which have been very well received. Market traction in the Middle East continues. Innovations have been adopted such as the “Cash Vans” concept, embracing the concept of small drop size for more frequent deliveries and deliveries to more remote locations. Won exclusive distribution of Monin syrups and purees in Bahrain, Bidfood Middle East Turkey continues to perform well in the brand distribution market, and has in the current year embraced the wider foodservice model with investments in Izmir, delivering a full foodservice offering. Customers (#) 93 412 4% 2018: 89 525 Bidfood SA invested in two depots, to be built from spec. A manufacturing facility was a signi cant investment to embrace the light manufacture, value-add element within the supply chain. Investing more than R36 million in delivery vehicles ensures our customers are receiving the best attention and service levels. The CFG Nelspruit building has been rebuilt following the re. CFG moved back in, in February 2019. Angliss Asia has invested in new and upgraded depot space in all key regions of their operations. The local management teams are driving initiatives to increase product offerings. Inventory management, warehouse and logistics are continuously improved and keeping up with wider product assortment. Market entry into Vietnam over the past year presents new opportunities to grow our footprint in south east Asia. Brazil and Chile have invested in depots and vehicles over the past year, bolstering infrastructure. Replacing old vehicles in Brazil creates the opportunity to improve delivery capacity. Embracing group-wide health and safety best practice, upgrades to the depot lighting, racking, temperature controls and adoption of Food Safety, Quality Control and Warehouse Standards has had a positive impact to the operations. Chile has decreased distribution costs through an investment in an additional depot in Santiago, separating deliveries to the north and south regions, and investing in a state-of-the-art freezer in this new depot. Product portfolio 45% 21% 30% 4% 2019 ● Frozen ● Chilled ● Ambient ● Non-food Customer mix ● Independent ● Chain ● Logistics ● Retail and other 50% 42% 1% 7% 2019 Bidfood SA ecommerce sales through myBidfood for 2019 was 66,4% . Using YouTube video’s to assist customers, the use and understanding of the platform has grown signi cantly. Bidfood Middle East won supplier of the year as voted by the hospitality market in UAE. The Middle East operations have focussed investment into upgrading the IT and online environment, anticipated to impact performance in the year ahead. Own brand 15% of 2019 divisional revenue Own brand Table Sea Salt and Black Pepper, Bidfood South Africa. Bidfood SA own brand has grown, contributing 32,7% to net revenue. Product SKU’s (#) 54 092 2% 2018: 53 229 3% Suppliers (#) 6 767 2018: 6 542 Ecommerce platform sales 17% 2018: 16% New functionally in myBidfood to present promotional activity and product specials to be implemented, introducing customers to the “menu costing and planning” functionality. The Bidfood difference Bidfood Chile, appointed the sole distributor for Kimbo Coffee Hardware* R57,2m Software R1,7m R58,9m 5% Investment in IT * Hardware includes IT and of ce equipment. Bid Corporation Limited Annual integrated report 2019 / 51 Divisional review