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FEATURE BRITISH AMERICAN TOBACCO
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FEATUR
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B R I T I S H A M E R I C A N T O B A C C O
2 www.southafricamag.com
S M O K I N G T H Ecompetition
British American Tobacco (BAT) South Africa is the
local arm of UK-based British American Tobacco (BAT) Group. With over 100 years of history, the firm is South Africa’s largest
manufacturer of cigarettes.By Ian Armitage
J SE-listed British American Tobacco (BAT) South Africa is a smoking superstar. Part of the
British American Tobacco Group of companies, which operates in more than 180 countries worldwide, it is one of the foremost fast-moving consumer goods businesses in the country.
“BAT South Africa holds a unique position within the global tobacco group,” says BAT’s Radu Dobrescu, formerly Head of Operations in Southern Africa.
He told South Africa Magazine that, not only is BAT South Africa, with 24 brands, one of the company’s largest profi t centres, with an enviable domestic market share of 86 percent, but it is also setting an example of successful cultural and structural change – while investing in becoming world-class manufacturing operation.
In that respect, in the years to 2018, some £150 million has been earmarked for upgrades and improvements to BAT South Africa’s operations.
“In South Africa, the business in its present form was created following the global merger of Rothmans International, partly owned by the Rembrandt Group, and London-based British American Tobacco plc,” Dobrescu adds.
In the words of one industry observer, “Without the acquisition of Rothmans International, BAT would have slid off the map of Africa.”
British American Tobacco FEATURE
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Locally, BAT South Africa employs more than 2,000 people.
It exports to 31 countries in Africa and the Middle East.
eMPLOYer OF the YeArIn 2011, BAT South Africa was rated as the ‘Best Employer in South Africa for 2011/12’ by the CRF Institute in its annual Best Employers Certifi cation Index.
The research showed that “BAT South Africa has outstanding HR policies and excellent working conditions”.
The company has built a reputation as a sought-after employer by focusing on employees as people with needs and dreams.
Referencing the company’s work in this area, Clifford van der Venter, BAT South Africa’s HR Director, said in a recent interview:
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British American Tobacco FEATURE
“There’s an underlying belief that it is great people who make great companies great. You can have the best strategies, the best products and the best brands but at the end of the day it’s the people that make the difference.
“One of the things that enables organisations with our kind of history to remain at the top is a constant renewal, and that has to happen through people. So we have made a deliberate decision to go out and fi nd additional talented people.”
Every year between four to 10 graduates are recruited for a two-year Management Trainee programme.
BAT South Africa makes a similar investment in its Growth Academy, an extensive development programme for existing employees with high potential.
“Over the years we have continued to put maximum effort in growing and nurturing our diverse talent to ensure that we have an excellent leadership pipeline in place. This effort focuses on training and development in the workplace as well as through structured internal and external programmes, aimed at building strong, individually minded leaders who will engage, motivate and inspire our organisation to stand tall in what is undoubtedly a challenging but exciting industry,” said MD, Brian Finch, recently.
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British American Tabacco FEATURE
ABOUt BrItISh AMerICAn tABACCO
British American Tobacco, through its subsidiaries, engages in the manufacture, distribution, and sale of tobacco products. The company offers cigars, cigarettes, smokeless snus, roll-your-own, and pipe tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Viceroy, Kool, Rothmans, Peter Stuyvesant, Benson & Hedges, and State Express 555 brand names. It has operations in the Asia-Pacifi c, the Americas, eastern and western Europe, Africa, and the Middle East. The company was founded in 1902 and is headquartered in London, UK.
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COntInUALLY InnOVAtInGBAT South Africa is constantly reviewing, renewing, refreshing and innovating its products, the way it does business, the way it operates and, in particular, the way it goes to market.
Several years ago the company moved to a direct sales model to have more direct interaction with its customers.
Another area of huge innovation is working with the South African Police Service and the South African Revenue Service to crack down on the illicit cigarette trade.
The issue forced BAT South Africa to look at its offering in the low-price segment.
“Every year, over R3 billion in tax revenue is lost due to illegal cigarettes,” BAT South Africa said
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British American Tabacco FEATURE
Over the years
we have continued to
put maximum effort in
growing and nurturing our diverse talent
SWM is an innovation engine. As a premier specialty paper company, we have become a global leader of engineered solutions for the tobacco industry worldwide. One of our solutions is our paper for Lower Ignition Propensity (LIP) cigarettes. Now a rapidly growing requirement in more and more markets, LIP has become the new standard — as it did in the European Union in 2011. Our groundbreaking Alginex® water-based technology enables cigarette manufacturers to meet regulatory requirements without interfering in the smoking experience their consumers seek.
Supporting the Tobacco Industry Globally
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We benefi t from our global commercial and industrial footprint, employing close to 3,000 people at 14 different locations on 4 continents, to build a strong bond with multinational and independent customers around the globe. This is true in South Africa, where we pride ourselves on our long-standing business relationships. Together with our customers in this market, we are poised to write a new page by supporting the industry in becoming LIP compliant in 2012.
To learn more about our industry-leading solutions, visit our website at swmintl.com.
Tel: +1 770 569 4271
SWM INTL100 North Point Center EastSuite 600Alpharetta, GA 30022-8246USA
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in a recent press release. “That’s the equivalent of the cost of more than 44,000 new policemen or 60,000 new homes.”
In response, it introduced a priced-marked pack to inform consumers of the recommended price of its lower-priced brands.
Where next?In terms of future expansion, the export market, into Africa and the Middle East, remains a key focus for strategic growth and development.
Empowerment is another key focus.
BAT South Africa is currently a Level 6
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British American Tobacco FEATURE
LIMPOPO tOBACCO PrOCeSSOrS (LtP) is the biggest single supplier of tobacco leaf to British American tobacco South Africa (BAtSA).
LtP is based in rustenburg in the north West Province of South Africa. the company contracts all flue cured Virginia tobacco farmers in the country. their combined annual production of 12 000 tons is mostly produced in Mpumalanga and the Limpopo Province, which borders Zimbabwe.
LtP was established in 2004 and replaced the tobacco cooperatives in the north of South Africa. An existing modern factory in rustenburg was selected by LtP to operate as the green leaf threshing facility for all locally produced tobacco. Buying stations in nelspruit, Groblersdal, Vaalwater and rustenburg enable farmers to sell their tobacco in their own growing area.
Suitable tobacco varieties are developed by LtP through dedicated research (financed by BAtSA), outstanding agronomy services and best growing practices, increasing the average production yield from 2 500 kg per hectare to 2 800 kg per hectare in a mere five years. Proper management and continuous monitoring also ensure the elimination of non tobacco related material, which secures a safe product of the highest quality.
tobacco leaf produced in South Africa delivers an outstanding smoking quality and chemical balance, similar to its northern neighbours Zambia and Zimbabwe, on the tip of Southern Africa.
LIMPOPO TOBACCO PROCESSORS
LIMPOPO TOBACCO PROCESSORS is the only green leaf threshing facility in South Africa. Its factory is equipped with all the latest technology and equipment and can process up to 10 tons of green tobacco per hour. Secure, clean warehousing ensures adequate Secure, clean warehousing ensures adequate storage capacity for 3 000 tons green tobacco and 20 000 tons packed tobacco.
PO Box 69Rustenburg 0300South AfricaTel: +27 14 596 5090Fax: +27 86 596 6419Email: [email protected]
The Sun is in our Leaf
Our success in the country was not
achieved by accident. We believe that we have retained many of the qualities that
initially helped place us at the forefront of
our industry
Contributor and has various initiatives and targets in place aimed at improving this score on an annual basis.
The fi rm spends more than R30 million annually on corporate social investment projects, mainly in the areas of empowerment, sustainable agriculture, civic life and HIV/AIDS.
BAT South Africa wants to “smoke the competition” by having its customers light up and keep the fl ame burning. In 2004 it celebrated 100 years of business in South Africa. “Our success in the country was not achieved by accident. The company became a leading business from its inception in 1904 and we believe that we have retained many of the qualities that initially helped place us at the forefront of our industry,” the company’s website says.
To learn more visit www.batsa.co.za. END
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34 Alexander StreetStellenbosch7600
Tel: (021) 888 3500Fax: (021) 888 3423
www.batsa.co.za
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