Clover's better way story and the shape of clover
clover at a glance
the story of clover
Yesterday – ”Renovate and Stabilise”
The Clover name is synonymous with South Africa’s green farmlands and fertile valleys. Founded in 1898 as a dairy farming co-operative in the bountiful Mooi River farming district of KwaZulu Natal, Clover has steadily evolved into one of South Africa’s largest dairy and fast-moving consumer goods groups, all the while remaining true to its founding ethos of providing premium quality products.
In 2010, Clover took the transformational step of listing on the JSE, which brought access to fresh investor capital, but demanded major internal refocusing and reorganising.
Clover restructured around a business model that dovetails its founding principles with best business practices that operate 24/7 to keep Clover moving and growing.
Today – ”Equip and Leverage”
This business model – as discussed in more detail later – is designed for long-term sustainability, regardless of market and political instability. People will always need food and drink, therefore Clover will always be there to make high-quality and safe products widely available.
Clover’s business model has been continuously optimised to attain tight integration throughout the value chain. Starting with the wide scale collection of raw milk at farm gates, we aggregate products at procurement points and transport them to our production facilities or distribution centres. Every step of the way is supported by best practice logistics and supply chain management.
Our market penetration as suppliers, distributors and merchandisers offers deep insights into the food and beverage markets. These guide our decision-making for organic and acquisitive growth into current or adjacent market segments.
Clover’s continuing success is measurable through financial results, market share growth in various segments, and the numerous awards we have won in recent years. Clover wins abundant awards each year for our superior products, appealing marketing, excellent reporting standards and ’Mama Afrika’, our corporate social investment project.
Recognising that the nature of business is changing fundamentally through social and environmental pressures, Clover’s leadership decides strategy on the basis of sustainable business practices that value our investments in people and communities as equally worthy to capital spent on infrastructure, technology and acquisitions. Without communities and people, Clover’s vision would be meaningless. We accept the reality that Clover and communities we impact can only be sustainable when we consider and look after each other’s interests.
Corporate social investment (CSI) projects such as Mama Afrika reflect that Clover is a longstanding business with integrity that finds exceptionally practical ways to support under resourced and struggling communities. This is why Clover’s Mama Afrika project is a prime example of how to make an actual difference for vulnerable people.
Clover is rigorous about sourcing raw materials only from suppliers whom we have assessed as reliable producers of high quality product. Source quality is of utmost importance to Clover’s brand values. At present, we procure approximately 600 million litres of raw milk annually from 155 accredited producers. The raw milk is transported by Clover to 15 production centres around southern Africa that are HACCP certified, excluding Botswana. All factories are in transitional phase from ISO 22000 to FSSC 22000. All Clover products undergo a thorough 55-point safety and quality check.
Clover’s business model is underpinned by one of the finest distribution networks in South Africa, with a fleet of specialised vehicles serving close to 21 000 distribution points up to several times a week. Besides delivering Clover products to our customers, we also earn a significant portion of our revenue from distributing a wide range of principal products to many of South Africa’s larger retailers and other businesses.
Tomorrow – ”Reach New Frontiers and Capitalise”
Guided by a visionary management team that is well proven and respected, Clover is poised to continue its prudent and sustainable climb to greater heights. The Board and leadership is keenly aware of the need to balance short-term shareholder expectations against investments required to secure Clover for the longer-term. In the immediate future Clover will be riding out South Africa’s 0,2% growth economy and the after effects of the southern African drought. We will use this time to tighten up efficiencies and examine new country markets and segments, while planning for improved weather and the next economic upturn. There is always an upturn, and the signs are that it is on the way.
Clover will embark on adjacent plays by identifying like-minded companies for collaboration. Growth will be pursued through an acquisitive strategy as Clover’s business platform has been significantly upgraded for strategic bolt-on acquisitions. New products and markets will be developed.
