INVESTMENT THESIS
Tiger Brands (TBS:SJ) is one of Africa’s largest fast-moving consumer goods companies. It is a market share leader in most of its segments with South African consumers spending 10% of their total annual spend on Tiger Brands’ products. The market share dominance is hugely beneficial given the presence of economies of scale (distribution, marketing, product innovation) within the company’s markets.
A successful investment in Tiger Brand needs the current weak profitability to be cyclical rather than structural. South Africa’s economy is going through a weak period causing stagnation in consumer spending. Over the