Our operating context

The environment in which we operate impacts on our ability to deliver on our strategy and create value in the short, medium and long term. Challenging macroeconomic conditions , foreign exchange liquidity restrictions , continued skills shortages and policy uncertainty in our home market were major features of our operating context. These make up four of our five material issues and are discussed here.

Within the packaging sector, and in our markets in particular, the most notable developments in 2018 included:

Growing demand for:

Recyclable, re-usable, bio-based and biodegradable packaging amid increasing awareness of environmental impact of thoughtlessly discarded packaging

Lighter weight

Our response:

Through Nampak R&D's technology partnerships we continue our work to reduce the weight of our products after significant reductions in recent years.

A changing competitive landscape

Our response:

Some customers are backward integrating, making their own plastic packaging

We are working to diversify into new markets, including personal, home and laundry care

A new beverage can manufacturer has entered the South African market, operating a single line

We see opportunity to defend market share through focusing on operations excellence

Consolidation is occurring among some of our customers

By improving operational efficiency, we are able to ensure a competitive offering

UHT milk, traditionally packed in cartons, rather than fresh milk, with UHT milk now making up 55 – 60% of the South African market

We offer packaging in both cartons and PET. We also work with our customers to market the benefits of fresh milk, packaged in HDPE.