Our Transformation journey

Famous Brands works towards an employee demographic that represents South Africa (SA). We observe the principles of equality and fair treatment in all operations and interactions with employees.

We view transformation a social, moral and strategic business imperative. We are committed to developing a more equal, inclusive and fair society through the ongoing transformation of our business and initiatives that empower the communities in which we operate.

In SA, our business transformation strategy follows the objectives of the Department of Trade and Industry’s BBBEE Codes of Good Practice (CoGP). This year Famous Brands moved from the CATHSSETA (Tourism and Hospitality) to the FOODBEVSETA (Food and Beverages) which is more aligned to our business activities.

Our Group Transformation Manager together with our executive leadership team are responsible to execute our BBBEE transformation strategy across the business. We have made good progress over the years.

Our transformation journey is monitored by our Social and Ethics Committee and Working Group. We endeavour to follow best practice and align our activities with the 10 Principles of the UN Global Compact. We aim to ensure that our operations are responsible, ethical and accountable.

 Click on the image below for more information

Our consistent progress achieved in improving our BBBEE score is depicted below.

This report provides details on our progress, targets and outlook regarding our transformation journey. While pleasing progress was made, we are mindful that there is still room for improvement.

Ownership
  • Voting rights
    • Black voting rights
    • Black women voting rights
  • Economic interest
    • Black economic interest
    • Designated group economic interest
  • Net value

The ownership element measures the effective ownership of a company by Black people. This includes the entitlement of Black people to the voting rights and economic interest associated with equity holding. Voting rights refer to the rights to direct the Company’s strategic and operational policies, while economic interests, such as shareholding, build the wealth of Black people. Ownership increased to 14.4% from 12.20%, based on an analysis of mandated investments.

Board participation and
other executives
  • Voting rights
    • Exercisable voting rights
    • Black executive directors
  • Black top management
    • Black senior top management
    • Black senior other management

Management control is exerted through the company’s governing bodies including the Board level and executive management level. The Board is measured according to African, Coloured and Indian (ACI) for transformation purposes.

As a result of COVID-19, retrenchments are ongoing and new employment equity targets will be set and communicated with the Department of Labour. An employment equity target template is being developed to enable managers to keep track of targets and use for the hiring process. The Talent and Development team utilises the template to align with training and succession planning processes for employment equity candidates. This element reflects the composition of the Board and Exco. The Board includes 40% Black directors and 20% Black female directors.

Employment equity
  • Senior management
  • Middle management
  • Junior management
  • Disabled

The employment equity element measures initiatives intended to achieve equity in the workplace, under the regulations of the Employment Equity Act, No 55 of 1998.

At Famous Brands, we acknowledge the value that diversity brings to our business. Our employment equity score is 9.11 (2020: 8.98 points). This score has been affected by retrenchments and a new target was set with the Department of Labour in November 2020. See below for a breakdown of our employment equity numbers.

Skills development
  • Skills development expenditure
  • Skills development expenditure for disabled persons
  • Learnerships, apprenticeships and internships
  • Absorption

The skills development element measures the extent to which enterprise’s executives initiate ongoing training to enhance the core technical skills and competencies of Black employees to support their optimal performance and enrich SA’s labour pool.

Continuous training of our talent is a business imperative and acts as a bridge between employment equity and talent development. We are committed to engaging, developing and retaining a highly skilled workforce by investing in the development and upskilling of employees. Our Human Resources team plays a leadership role in training employees and supporting the business to achieve its strategic objectives. The Group achieved 19.76 points for this element. The CoGPs are changing, especially in skills development, where it is now more costly to achieve the same score.

The COVID-19 pandemic forced the Group to cancel or postpone key skills development initiatives:

  • the internship and YES programme were cancelled at the start of COVID-19 (130 people); and
  • the International Executive Development programme, Executive Development Programme, Managers Challenge and Junior Management Programme were not completed.

The pandemic also reduced our spend across our total skills development budget. In FY2021, we spent approximately 90% of our total skills development budget on the development of Black employees across the organisation. Approximately 15% was spent at senior and executive management levels.

ESD
  • Preferential procurement
    • Spend on BBBEE suppliers
    • Spend on qualifying small enterprise suppliers
    • Spend on exempted micro-enterprise suppliers
    • Spend on >51% Black-owned suppliers
    • Spend on >30% Black women-owned suppliers
  • Enterprise development
  • Supplier development

ESD comprises two elements: preferential procurement and ESD. Preferential procurement refers to the extent to which enterprises buy goods and services from suppliers with strong BBBEE credentials. ESD refers to the financial and non-financial support given to grow and nurture new or existing small and micro-enterprises.

We scored 15.32 out of 25 points for preferential procurement (2020: 17.97 points). We believe that preferential procurement offers the greater immediate improvement opportunity.

Preferential procurement spend

We are actively investing in the development and transformation of our supply chain; however, these initiatives take time. We focus on understanding the contributor level of each supplier in the database. Suppliers between non-compliant and a level 5 contributor status will be assisted with a transformation plan or replaced with a qualifying supplier.

We currently also track BBBEE certificates which have expired and monitor our initiatives on a monthly basis.

ESD

We have assembled a task team to inject new energy into our key ESD initiatives. We achieved a score of 15.00 points for ESD.

Berlin Beef initiative

Owner-driver initiative

Socio-economic development contributions are any financial or non-financial contributions implemented for individuals or communities where at least 75% of the beneficiaries are classified as Black. The Group achieved the full five points available for this element and our socio-economic development initiatives are rooted in supporting and investing in communities where we operate. A few of our key initiatives are included below:

Outlook

Transformation will remain a key priority for the Group as measured by the achievement of our goals within our set implementation timelines. Our transformation plans include initiatives to address the five elements of the CoGP. We will continue to promote diversity at all levels of management. We are excited by the opportunities and partnerships that exist in our downstream supply chain. We are cognisant that some of our initiatives were and will be negatively impacted by the COVID-19 pandemic and associated restrictions.