Introduction to Colors and the Colors Foundation

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Introduction to the Colors Group April 2009 Introduction to Colors Group

Transcript of Introduction to Colors and the Colors Foundation

Page 1: Introduction to Colors and the Colors Foundation

Introduction to the Colors GroupApril 2009

Introduction to Colors Group

Page 2: Introduction to Colors and the Colors Foundation

CONTENTS

o Who we are

o Market Statistics

o Key Business Concepts

o Sustainability Overview

o The Colors Foundation

Introduction to Colors Group

o The Colors Foundation

o Projects Update

COLORS GROUP ©

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WHO WE ARE

• South African agri-business focused on the fruit industry.

• Formed in 1997 after deregulation of the South African fruit industry.

• Now the largest privately owned fruit company (by sales) in South Africa and the country’s 3rd largest fruit exporter.

• Supply fruit across all major fruit categories.

Introduction to Colors Group

• Supply fruit across all major fruit categories.

• Vertically integrated business model with direct interests that include:• Fruit farms (15% of supply)• 7 Pack-houses• Freight Forwarding (Aspen Logistics)• Packaging Distribution (Prisma Packaging)

• Head office in Paarl, South Africa

• International offices in Canada, the UK and Belgium

COLORS FRUIT ©

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MARKET STATISTICS

• Export Volume Growth (standard cartons):

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Introduction to Colors Group COLORS FRUIT ©

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2000000

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MARKET STATISTICS

• Exports per Destination (2008):

AFRICA, 2% CANADA, 9%

RUSSIA, 4%

UNITED

KINGDOM, 26%

USA,

2%

Introduction to Colors Group COLORS FRUIT ©

EUROPE, 31%

FAR

EAST, 7%

IRELAND, 1%

MIDDLE EAST,

16%

NORWAY /

SWEDEN,

2%

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KEY BUSINESS CONCEPTS

• Act as a “bridge” of operational and service excellence…matching the supply

from a production-base of top South African producers with the demands of

top customers around the world;

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Introduction to Colors Group COLORS FRUIT ©

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• To exert our influence across the value chain:

KEY BUSINESS CONCEPTS

International Offices: Sales & Technical Services

Specialist Client Services - Packaging and Logistics

Brand Development & Demand Stimulation

Retail Customers

Introduction to Colors Group COLORS FRUIT ©

Primary Fruit Production

Grading, Packing and Cooling

Packaging Material Supply

Freight and Logistics Management

Marketing & Export Management

International Offices: Sales & Technical Services

R&D - New Cultivar Development

Technical Services – Food Safety, Quality & Ethical.

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MACRO STRUCTURE

MARKETING

DIVISION

EXECUTIVE

FARMING DIVISIONOPERATIONS

DIVISION

Finance

HR

CENTRAL OFFICE DIVISION

Introduction to Colors Group COLORS FRUIT ©

Legal

R&D

Sustainable Business

HR

New Business Development

/ Investments

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SUSTAINABILITY OVERVIEW

• Sustainable Business has been recognized as a key strategic driver for the Colors Group

• A specialized function was created in 2008 to house the various projects being undertaken by Colors in the fields of Sustainability, including:

• Social up-liftment• Ethical practices/trading• Environmental stewardship• Quality and food safety standards• Business process improvement

Introduction to Colors Group

• The purpose of this function is to embed the concept of “sustainable business” in the ethos, culture and behavior of the Colors Group and its supply-base.

• This is done through identifying, planning, resourcing, supporting and delivering on projects across the broad subject of sustainability.

COLORS FRUIT ©

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SUSTAINABILITY OVERVIEW

We have the following conceptual framework guiding us:

• Holistic approach to business that integrates the management of Economic, Natural and Human/Social Capital so as to achieve sustainability.

• Acknowledges that sustainability has to take care of all three capitals.

• Deliver this through detailed actions and programs directed at our people, products and processes.

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SUSTAINABILITY OVERVIEW

People

Product

Process

Introduction to Colors Group COLORS FRUIT ©

People Process

Grow

Economic Capital

Protect

Natural Capital

Develop

Human/Social Capital

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THE COLORS FOUNDATION

• The Colors Foundation serves to drive the sustainability strategy of the Colors Group.

• The Colors Foundation has been created and is set up as a Section 21 entity (not-for-profit company).

• To date the funding for the projects that now form part of the Foundation have been funded by the Colors Group (equivalent of 32% of 2009 Group Profit).

• The intention is to use the Foundation as the vehicle to attract and deploy donor funds, thereby enabling it to expand its “reach” more quickly across the Colors supply-base, and beyond.

Introduction to Colors Group

enabling it to expand its “reach” more quickly across the Colors supply-base, and beyond.

• The Foundation incorporates the following 3 elements:

COLORS FRUIT ©

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THE COLORS FOUNDATION

Colors Academy:

• Led by a dedicated team

• Focused on developing human/social capital trough the delivery of a suit of services and programs to people living and working on farms and in pack-houses across the Colors supply-base.

• Three areas of activity:• Training and Education• Health

Introduction to Colors Group

• Health • Social Up-liftment.

• Two “incubator" sites developed at the Group’s Theewaterskloof Farms and Novo Packhouse*

* Now on-hold due to recent fire

COLORS FRUIT ©

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THE COLORS FOUNDATION

Colors Standards:

• Led by a dedicated team

• Focused on ensuring all internal and relevant external standards and systems are applied and upheld.

• Houses all standards-based elements including ethical trading, food safety, water quality, quality management & continuous improvement systems, GAP , HACCP systems etc

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THE COLORS FOUNDATION

Colors Environment:

• Led by a dedicated team.

• Focus on the conservation and building of the Natural Capital available to the Colors organisationboth now and into the future.

• Projects and interventions include Carbon & Water Footprinting, Emissions & water-use Reduction, Soil Health, Sustainable Farming, Bio-diversity protection, etc.

Introduction to Colors Group COLORS FRUIT ©

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PROJECTS UPDATE

Colors Academy• Colors Academy Theewaterskloof & Novo Packhouse Incubators - multiple education, health and

social upliftment projects.• Theewaterskloof Sustainable Community project.

Colors Environment• Colors Carbon LCA Project.• Colors Water Footptinting Project

Introduction to Colors Group

• Detailed Energy Audit Project• Biochar Pilot Project.• Conversion to Solar Water Geysers Project.

Colors Standards• Sustainable Farming Manual• Ethical Performance Improvement Strategy• Colors Water Quality Improvement Project• Nature Farming Project

(A project summary is attached as an addendum to this presentation ...\..\Update on Colors Foundation.doc

COLORS FRUIT ©

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CONCLUSION

• Colors is committed to building an organization that stands the test of time, i.e achieves sustainability.

• This demands that:• Grow Economic Capital• Develop Human/Social Capital• Conserve Environmental Capital

Introduction to Colors Group

• Colors and its supply-base represent 10% of the South African fruit farmers – a• a large constituency where a significant impact can be made.• looking to Colors to provide leadership

• Colors Foundation is equipped to lead this transformation • Vision, commitment• Human resources and leadership

• The Colors Group has committed equivalent to over 30% of net profit over past two years to fund the Colors Foundation/Sustainability Projects.

• Need to attract funding partners to enable the expansion of these programs across the Colors supply-base first, and then to the broader South African Fruit Industry.

COLORS FRUIT ©

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Introduction to Colors Group

THANK YOU!

COLORS FRUIT ©