Nutritional Holdings operates in a competitive industry with its revenues being well diversified by product mix, geography as well as urban and rural spread. The majority of the Group’s brands are well recognized in the mass market segment which caters for the LSM 3-6 sector with sizeable market share. The company has exciting growth prospects, including, but not limited to, the growth of its operations from a very low base.
The Group has an established manufacturing base and a distribution network in Southern Africa. This, coupled with the extensive capital outlay required to replicate its operations, makes for high barriers of entry for potential competitors.
The strategy of the Group is to:
- · increase manufacturing capacity to capitalize on the strong growth in consumer spending in Southern Africa;
- · step up innovation, new product development and leveraging existing brands into new categories as well a developing new brands;
- · when appropriate, acquire brands which will complement its current businesses to increase critical mass or provide access to new markets, technologies or distribution channels;
- ·diversify the companies production capabities to include contract manufacturing for 3rd parties.