Clover (dairy)

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Clover Industries Limited
Clover
Traded as JSE: CLR
Industry Fast-moving consumer goods
Headquarters Johannesburg, South Africa
Area served
Southern Africa
Key people
Website www.clover.co.za

Clover Industries Limited ("Group" and/or "Clover") is a branded foods and beverages group, listed on the main board of the Johannesburg Stock Exchange as of 14 December 2010.

The Group produces and distributes (both for itself and other FMCG companies) a diverse range of dairy and consumer products to customers and consumers through one of the largest and most extensive distribution networks in South Africa (more specifically the second largest chilled distribution network).

History[edit]

The dairy farm of Joseph Baynes at Nel's Rust, Natal, before 1903.The building is today a museum and a Provincial Heritage Site

In a series of meetings in 1898 in the Natal Midlands, a group of farmers agreed to establish a butter factory operated under co-operative principles, and adopted the name "Natal Creamery Ltd"; and the following year, Joseph Baynes opened the first butter factory in Natal on his farm, Nel’s Rust.[1]:7–8 Due to the absence of proper legal channels to register a co-operative, Natal Creamery Ltd was registered under the Natal Companies Act and H Blaker was appointed as the first chairman.[2]

A partnership between Natal Creamery Ltd and Joseph Baynes Ltd for the marketing of fresh milk in Durban, called Model Dairy broke up in October 1901. Natal Creamery Ltd began milk distribution in Pietermaritzburg in 1902, and in 1903 it was dispatching milk daily to Johannesburg and investigating the Johannesburg milk industry, taking over the Johannesburg Milk Supply Company Ltd in 1908.

In 1923 Natal Creamery Ltd was registered under the Co-operatives Societies Act of 1922, and by 1932 Natal Creamery Ltd was operating in 32 centres countrywide. When the operation of a 100% co-operative style system was approved in 1934, the name was changed to National Co-operative Dairies Ltd.

Clover S.A. (Pty) Ltd was established on 10 December 1993,[3] forming a joint venture partnership with Compagnie Gervais Danone (Danone) in 1995. A holding company for Clover S.A. (Pty) Ltd – Clover Holdings Ltd – was established in 1997, and the following year Danone and Clover S.A. (Pty) Ltd formed the Danone Clover (Pty) Ltd joint venture.

The conversion of National Co-operative Dairies Ltd from a co-operative to a public company took place during November 2003. A name change to Clover Industries Ltd was also approved during a series of special general meetings. Ordinary shares exercised control and preferential shares made freely tradable. Clover S.A. (Pty) Ltd and Danone formed the Clover Danone Beverages Ltd joint venture.

In 2004, Clover Holdings Ltd was unbundled, with Clover Industries Ltd becoming the new holding company of Clover S.A. (Pty) Ltd, one of the largest branded consumer goods companies in South Africa, South Africa’s largest dairy company and one of the leading manufacturers and marketers of food products in South Africa, and in 2005, Hosken Consolidated Investments Ltd acquired a 25,1% shareholding in Clover Industries Ltd as a BBBEE partner.

In 2006, Clover S.A. (Pty) Ltd and Fonterra Ltd of New Zealand formed the Clover Fonterra Ingredients (Pty) Ltd joint venture, and in 2007 Hosken Consolidated Investments Ltd, the BBBEE partner, exercised its option to increase its ordinary shareholding to 34,9% and Clover S.A. (Pty) Ltd bought 39,8% of the shares in Clover Danone Beverages Ltd from Danone. The company’s name was changed to Clover Beverages Ltd.

In 2008 Danone Clover (Pty) Ltd acquired a 70% interest in Mayo Dairy (Pty) Ltd, and the following year Danone Clover (Pty) Ltd underwent deconsolidation/recapitalisation. In 2010 Danone Clover (Pty) Ltd was sold and a capital restructuring was undertaken, and the same year saw the removal of the condition that only milk producers may hold ordinary shares and de-linking the ordinary share from milk supply, and the repurchase of 34,9% ordinary shares from Hosken Consolidated Investments Ltd, and conversion of preference shares to debt-only instruments. Clover Industries Limited was listed on the main board of the JSE Limited on 14 December 2010.

2011 saw the buy-out of the non-controlling interest in Clover Beverages Limited and the subsequent transfer of the non-alcoholic beverages business to Clover SA, and in 2012 the company bought the Real Juice Co. Holdings (Pty) Ltd from AVI Limited and acquired the minority interest in Clover Botswana (Pty) Ltd and Clover Manhattan (Pty) Ltd.

2012 – Bought the Real Juice Co. Holdings (Pty) Ltd from AVI Limited. Acquired the minority interest in Clover Botswana (Pty) Ltd and Clover Manhattan (Pty) Ltd respectively.

2013 - The Clover Waters joint venture (in terms of which Clover owns 70% and Nestlé owns 30% is formed) expanding Clover's portfolio of value added and branded beverage products. Clover is associated with global brands such as Nestlé Purelife and Nestea which opens up opportunities in the sub-Saharan market.

2014 - Clover Futurelife joint venture is established for a nutritional dairy based product based on a 50/50 partnership. Various other initiatives are currently being explored.

Business[edit]

Operating in one form or another since 1898, the Group has enjoyed a long and successful history as part of the development of South Africa's dairy and fast moving consumer goods industry ("FMCG"). Today, Clover is a leading and competitive branded consumer goods and products group operating in South Africa and other selected African countries with core competencies in:

  • The production of dairy and non-alcoholic beverage consumer products;
  • The distribution of chilled and ambient consumer products; and
  • The sales and merchandising of fast moving consumer goods

The business platform, created and sustained by the dairy business, provides the perfect platform for the Group to reach an extensive cross section of South African customers and consumers.

The Group’s business platform spans the breadth of the value chain from production to sales and integrates key value-added support services such as logistics, supply chain management, sales and merchandising. Clover’s market penetration (Clover delivers to approximately 17 000 delivery points across South Africa) coupled with its value-added services offering and high frequency of delivery, positions the Group to exploit attractive opportunities for organic and acquisitive growth.

Clover was converted from a co-operative society into a public company in 2003. Subsequent to the conversion, the Clover Group has evolved into a dynamic demand-driven branded consumer products business with attractive growth prospects.

As part of its evolutionary process, Clover implemented a capital restructuring on 31 May 2010, which was a milestone in its corporate development and resulted in both economic benefits and voting control vesting in the ordinary shares. In addition, the delinking of the ordinary shares from the milk delivery agreements enabled persons other than dairy producers to acquire ordinary shares, facilitating its ability to raise equity capital. Capital scarcity has historically been a key constraint for Clover's growth and development.

Corporate social investment[edit]

The Clover Mama Afrika[4] project was established in 2004. The goal was to give South Africans from disadvantaged communities back their pride and livelihoods. The concept of Clover Mama Afrika is simple: Clover empowers community caregivers with viable skills, which they in turn pass on to others in order to become sustainable. All of this is done whilst caring for society’s most vulnerable members, like orphaned and abused children, those infected or affected by HIV/Aids and senior citizens who need a helping hand. Clover Mamas are women who already make a difference in their communities and want to become self-sustainable. Currently there are 36 extraordinary Clover Mamas collectively looking after more than 14 000 vulnerable children and more than 2 000 elderly people, in 36 geographical regions throughout South Africa.

References[edit]

  1. ^ Cook, R. Brougham (1922). "Chapter II - Co-Operation and the dairy farmer". Guide to dairying in South Africa. London, Beccles: William Clowes and Sons. 
  2. ^ "Clover celebrates successful era". Volksblad. 17 March 1999. 
  3. ^ CILLIERS, JAN (12 December 2003). "NCD nou maatskappy". Landbou Weekblad (in Afrikaans). Retrieved 8 July 2013. 
  4. ^ Clover Mama Afrika Official Website

External links[edit]