How clover creates value and reporting on the six capitals

Intellectual Capital

How Clover creates value today: Intellectual Capital

Over the years, Clover’s marketing and new product development ("NPD") departments have developed several iconic household brands

Trademarks and Patents

Clover is the proprietor of more than 900 registered trademarks.

Clover further holds 11 patents registered in South Africa and Namibia.

Clover’s intellectual property is protected through employment contracts, confidentiality agreements and licence agreements.

Brands and reputation

Over the years, Clover’s marketing and new product development (“NPD”) Departments have developed several iconic household brands. These include Clover, Tropika, Butro and Krush, amoungst others. These brands are evolved and kept relevant to their markets through regular monitoring of the South African retail and consumer landscape and continuous marketing activities, utilizing various communication platforms such as in-store campaigns, digital campaigns, TV and print media.

Clover has been a household name for more than a century and has played an integral role in the development of South Africa’s dairy and fast-moving consumer goods industry. Today, Clover is a high profile branded consumer goods company with core competencies in the development, production, distribution, sales and merchandising of both fresh and ambient food and beverage products.

Commercial sales

The ethos and strategy of Clover’s commercial sales department.is to stay ahead of changes in existing markets, while entering new markets and product categories.

Information Systems

Clover’s in-house Information Technology (IT) Department provides the digital backbone for all our management systems. Clover’s IT governance and its independent assurance is outlined in the Governance, Risk and Compliance Report.

Distribution for third parties

Clover leverages our market leading distribution system to provide sales and distribution services to many leading companies.

Product Innovation and Technology

As the owner of numerous household brands, Clover needs to continuously refine its marketing strategy. We do this by acquiring or developing new value-added products for integration into our brand portfolios.

Clover’s market share in major food and beverage product categories was as follows:

	Clover’s Percentage market share as at 30 June 2017	June 16
Fresh Milk	21,8	24,1
UHT Milk	14,1	14,6
Fresh Cream	21,9	28,4
Feta Cheese	24,7	27,9
Natural Pre-Packed Cheese	18,5	17,0
Liquid Custard	10,1	7,6
Processed Cheese Slices	9,4	15,4
Pure Fruit Juice	44,3	42,9
Dairy Fruit Mix	83,9	79,0
Ready-to-Drink Iced Tea	15,1	17,2
Bottled Water (Including Aquartz and Nestlé)	7,3	11,0
Ready-to-Drink Flavoured Milk	31,9	29,7
Maas	9,6	9,3
Yoghurt	8,7	8,3

Source: Nielsen Report 30 June 2017 (12 monthly moving).

Key Intellectual Capital Inputs

911 trademarks registered.
Deeply entrenched household brands, including Clover, Tropika, Butro and Krush, to name a few.
Clover constantly improves its business process through state of the art sytems to automate and gain further insight into business functions through various IT and system licences
Staff are encouraged to join various professional bodies/institutions through memberships.

Outputs

	2017	2016
Total number of Trademarks:	911	966
In South Africa	470	442
In the rest of Africa	436	523
In other countries	5	1
Investment in Research and Development	R49,62m	R37,70m

Outcomes

Improved packaging, working towards “greener” alternatives.
Increased sales and delivery of innovative solutions.
Expanding portfolio of brands.
Clover regularly wins awards that confirms its status as a trusted household name.

Clover often wins awards that confirms its status as a trusted household name. Some awards bestowed on Clover in the recent past include:

Winner of South Africa RepTrak® 2016 and 2017 most reputable company in South Africa award.
Numerous 2016 SA Dairy Championships and Product Quality awards.
Product of the year 2016 winner: Tropika 200ml.
Winner of Reader’s Digest’s Most Trusted Brands for 2015.
South Africa’s leading Iconic Brand in the fresh milk category in 2015 and 2016, and in the cheese and juice categories in 2016.
Although not Icon Brand Status, Clover was the category winner in this survey in the UHT Milk, Cream, Condensed Milk and Feta categories.
Clover Fresh Milk also achieved Kasi Star Brand status in the 2016 and 2017 surveys (the same accolades as Icon Brands, but survey conducted only in South African Townships).
In 2017 Clover also emerged as category winner in the Kasi Brands survey for yoghurt, cheese, cream and condensed milk.

Clover consumer campaigns “Little Big Cook Off” and “Tropika Island of Treasure” both received SAFTA awards in 2015 in the game show category

Licence and memberships

Clover is constantly looking for ways to improve its business, methods and record keeping. Introducing state of the art systems to automate and gain further insight into business functions, enables Clover to be “Way Better”.

The following table lists some of Clover’s significant IT and systems licences:

Software	Description
BES Time	Time & Attendance Software
ERP LX, eRMS, ELKE	ERP System
SSL Certificates for external exposed systems	IT Security
KAS, Milk System	Application Development Software
Cognos	Analytics and Reporting
Heat & ITSM	Customer/Consumer call logging software
Exrillo	Export System
Dispatcher	Warehouse Management System
Startrak	Warehouse Management System (Small Branches)
D-BIT	Fixed Assets System
ION BI	Fixed Budget System
FTP Server	Integration
Brightstor	Backup Software
Sophos	IT Security
Email protection	IT Security
DB2Connect	Development software for Data Warehouse
Websphere Message Broker	Integration Software
Wonderware	Process Control Software
AutoCad	Design Software
Entropy	SHE Software
On-Key	Production Performance Software
Advanced Planner, Demand Planner, S&OP	Planning Software
Optima/Plato	Primary Distribution Software
Roadshow	Secondary Distribution Software (Route Optimisation)
BarnOwl	Risk Management

Clover’s people are encouraged to join institutions that offer knowledge and networking. Clover, as an organisation, and our people belong and contribute to the following associations:

	Capitals	Memberships or Professional Institutions
	Human Capital	Institute of Directors
	Natural Capital	Cape of Good Hope Agricultural Society Central Agricultural Society South African Juice Association Milk SA International Dairy Federation Global Dairy Platform (GDP) Dairy Sustainability Framework (DSF) International Farm Comparison Network (IFCN) South African Society of Dairy Technology
	Manufactured Capital	Engineering Council of South Africa National Laboratory Association South African Association of Food Science & Technology South African Institute of Professional Engineers The Institute of Packaging Chartered Institute of Purchasing and Supply
	Intellectual Capital	Consumer Goods Council of South Africa Law Society of South Africa
	Social and Relationship Capital	Health Professions Council of South Africa South African Reward Association
	Financial Capital	South African Institute of Chartered Accountants Chartered Institute of Management Accountants South African Institute of Professional Accountants

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