For more than 100 years, family has been at the heart of Clover. These days, we know that a busy lifestyle makes it increasingly difficult to ensure your family gets the best nutrition in their daily diet.

This is why Clover CareTM was specifically developed by food specialists – to help your family get the healthy boost they need. We’ve enriched our Way BetterTM, quality Clover milk with nutrients lacking in the South African diet. It’s the first of its kind in the South African diet!

It contains 11 vitamins, nine amino acids and three minerals, and is a good source of protein and calcium. The whole family can enjoy Clover Care just like regular Clover milk – by drinking it on its own, having it in tea and coffee, pouring it over cereal or using it in cooking and baking.

Clover Care Enriched Full Cream Milk is available in fresh and long-life options in one-litre packs, and hit the supermarket shelves in September. More peace of mind for moms who care about their families’ nutrition, no doubt! For more information visit the Clover Care page on our website.

Media Contact:

Name & Surname: Prof Elain Vlok

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.   

Telephone: +27114711527

There’s a delicious dairy solution for lactose intolerant people, thanks to new Clover NoLacTM Lactose Free Milk.

This is exciting news for the dairy industry in South Africa, since until now, a consistent supply of lactose-free milk has only been available in specialised and select retail stores. Clover’s extensive distribution network and footprint is set to remedy this and ensure product availability.

In addition, the global lactose-free dairy market experienced a 10% growth in 2015, and the segment is expected to keep expanding, making it an ideal investment for Clover.

New Clover NoLacTM is pre-treated with the enzyme lactase to break down lactose, making it easy to digest for the lactose intolerant person. This process gives Clover NoLacTM a sweeter taste than regular milk, but without any added sugar.

Calcium and vitamin D have also been added to this great-tasting Clover milk – nutrients known to be lacking in the diet of those who cannot tolerate lactose. Calcium is good for bone strength and Vitamin D aids in the absorption of calcium.

Clover NoLacTM is delicious on its own, in tea and coffee, with cereal and is ideal for use in cooking and baking. Look out for it at your local supermarket in a convenient one-litre pack; both fresh and long-life milk options are available. Or visit our Milk page on the Clover website for details.

Here’s to the Way BetterTM goodness of milk that can now also be enjoyed regularly by lactose intolerant Clover consumers!

Media Contact:

Name & Surname: Prof Elain Vlok
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Telephone: +27114711527

Higher margin, value-added product sales and cost efficiencies contribute to positive performance.

• Revenue up 6,0% to R9,8 billion
• Operating profit up 10,9% to R564,5 million
• Headline earnings increased by 11,7% to R356,6 million
• Headline earnings per share increased by 8,9% to 188.9 cents
• Strong cash generation of R709.7 million, from operating activities before working capital requirements
• No selling price increases on dairy products until late in the review period to protect market shares
• Inflationary costs absorbed through cost cutting initiatives, efficiencies and higher sales volumes
• Final gross cash dividend of 40,94 cps declared bringing the total dividend to 65,15 cps (FY2015: 56 cps)

Clover Industries Limited (“Clover”, “the Group” or “the Company”), a leading branded consumer goods and beverages group operating in South Africa and other selected African countries, today announced excellent financial results for the year ended 30 June 2016.

Commenting on the performance, Johann Vorster, Clover Chief Executive, said: “We are pleased with the continued strong performance, especially as this is off of a very high base set last year. We also experienced extraordinarily challenging operating and economic conditions during the period but managed to counter this by driving sales volumes, improving efficiencies and managing costs where possible.

“We navigated two very different halves of the year, the first characterised by an oversupply of raw milk and consequently lower selling prices; the second by a severe drought that swept the country and resulted in lower raw milk production compounded by higher input costs. The period saw a weakening in the foreign exchange rate which resulted in higher than expected cost inflation.

“Our strategy to balance traditional dairy products with higher margin value-added products continued to gain traction. Although our roots will always remain firmly in dairy; non-dairy and value-added products now contribute 40% to margin on material. Our short-term aim is to increase this to an even split.”

Revenue increased by 6,0% from the previous corresponding period to R9,8 billion following a 9,7% improvement in overall sales volumes. Excluding the effect of the Danone contract which was systematically phased out from December 2014, real growth in revenue was 7,5%.

Despite an 8,4% uptick in cost of sales, an increased contribution from higher margin, value-added products and improved efficiencies led to a 10,9% improvement in operating profit to R564,5 million.

The Group’s operating margins increased to 5,7% from 5,5%, whilst normalised operating margin increased from 5,2% to 5,9%.

Headline earnings rose 11,7% to R356,6 million for the reporting period, whilst headline earnings per share (HEPS) increased by 8,9% to 188,9 cents.

Clover’s brands traded in line with expectations buoyed by solid festive season demand and the heatwave conditions experienced in December 2015. The Fermented Products category, which includes yoghurt and maas, in particular contributed positively to the performance as did the Beverages portfolio which delivered an exceptional performance bolstered by the full benefit of selling price increases implemented in July 2015.

Clover kept dairy selling prices constant for most of the review period and absorbed inflationary increases as far as possible. Sales price increases were however implemented across the product categories in April 2016 to recover high cost inflation pushed up by the weakening foreign exchange rate.

Management continued its focus on cost saving drives and specifically on containing variable costs. Head office incurred no inflationary increases and administrative expenses were reduced by 2.8%, mainly due to a moratorium on new appointments as well as the cancellation of conferences and special events. The successful renegotiation of contracts, reduced selling and distribution costs by 2,6%. Marketing spend was also reduced by 13% by leveraging synergies through a “mother brand” approach.

Cash generation was strong, ending the period at R709.7 million compared to R566,7 million reported in the prior year. Investment activities consumed R332.6 million in cash.

“We successfully mitigated a range of challenges and created stakeholder value through leveraging opportunities and ensuring adaptability to market changes.

“The rate at which we were able to improve efficiencies and reduce costs this year is commendable. Senior management has further committed to a voluntary salary freeze with no increases for the current financial year in order to contain costs further,” commented Vorster.

The prolonged drought primarily in the Highveld and Kwazulu-Natal areas, has seen raw milk production ease downwards on the back of higher feed costs. Clover accordingly increased prices paid to producers in order to protect the primary industry. Current indications are that there is still a challenge to supply the forecasted market with milk. Clover is therefore monitoring the situation closely and will take the necessary action to ensure availability of raw milk.

Since listing in 2010, Clover has invested heavily in acquisitions and rejuvenating its factories and distribution assets for continual and sustainable growth. With the exception of the Bloemfontein yoghurt capacity expansion which is ongoing until July 2018, capex spend will reduce significantly as it now has the platform from which to extract further operating efficiencies, reduce costs and deliver enhanced returns to shareholders.

Commenting on prospects for the year ahead and longer term strategic objectives, Vorster said: “We anticipate that the improved weather conditions predicted for late 2016 and 2017 will normalise milk production, result in a fall in food and beverage input costs and an overall reduction in food price inflation.

“Our immediate focus will remain on fully utilising capacities and the asset base that we have built over the past five years. We are committed to increase the margin contribution from non-dairy and new products in the short term, to a level where it is equal to traditional dairy products.”

“Local opportunities for consolidation where synergies can be leveraged will remain on our radar as will opportunities to increase exports to African markets where currency risk can be mitigated. (read more here: http://www.clover.co.za/news/post_6595-clover-delivers-pleasing-full-year-results-despite-challenging-market-conditions) or visit http://www.clover.co.za/

In keeping with its “Way Better®” promise and in line with the R260: Agricultural Product Standards Act passed by the Department of Agriculture, Forestry and Fisheries, Clover has implemented a change to the fat content of its low fat milk variant. A recent Government bill, which came into effect on March 28, 2016, dictated that going forward low fat milk should contain between 0.5% and 1.5% butterfat (cream) and accordingly, milk with between 1.6% and 3.3% will fall into a new medium fat category.

As a result, and by law, Clover was faced with the option of either reducing the milk fat in its 2% low fat option, or re-categorising it as medium fat milk. After careful consideration and in consultation with consumers, the leading dairy producer has chosen to reduce the fat content to 1.5%, thereby maintaining its low fat status and minimising confusion for the health-conscious shopper. ​

Clover Cares

“As a favourite household brand, we make a point of meeting the specific needs of our consumers. For this reason, we conducted research with a range of individuals to ensure that the new categorisation of our milk variants will not compromise the high quality and premium taste associated with Clover dairy products.”

“After listening to what our consumers had to say, and based on their feedback, the decision was taken to retain the red ‘low fat’ label and descriptor and lower the fat formulation to 1.5%, which going forward will be in keeping with government legislation and in line with many overseas standards,” explains Clover’s Marketing Manager of Dairy, Sherian King.

Less Calories. Same Quality

The delicious taste of Clover’s milk is no doubt part of what positions Clover as one of the leading dairy producers in the world. The good news is that after conducting blind tasting with consumers, the vast majority of tasters did not taste a difference in the reduced fat milk. It’s also important to note, Clover’s full cream and fat free milk products will remain the same tasty variants as before.

Milk is often seen as a complete food due to its intrinsic properties and nutritional value. And while many consumers are unsure of the percentage of fat in full cream milk, the truth of the matter is that the fat content, in accordance with government legislation, for full cream milk is standardised by most dairies in accordance to legislation to 3.3%. “Indeed, our consumers with a preference for our low fat option or other alternatives, can rest assured that they can continue to purchase the milk they have come to know and love, without fear of compromise in Clover’s quality,” concludes Product Development Manager, Piet Laubsher.

From Farm to Table

Clover’s brand promise of “Way Better” remains firmly in place despite the adjustment to its low fat variant. Clover’s fresh milk undergoes 55 quality tests and is kept cold throughout distribution to ensure freshness. It is also sourced from specially selected farms.

“All milk is pasteurised by heating the milk in order to make it safe for human consumption. After it is pasteurised, we then use a process called bactofugation, which spins the milk so that additional bacteria can be separated and removed. While pasteurisation kills all the bacteria that can make one sick, bactofugation removes the bacteria that is safe to consume but will cause the milk to spoil. Not all companies do this, but we have invested in technology to provide consumers with better quality milk and a longer shelf life, which has now been extended from 12 to 18 days,” explains group manager for product innovation and technology, Anton Pretorius.

“As with all Clover milk products homogenisation takes place to prevent the separation of milk and fat (or cream), which creates an unwanted layer on top of milk. This is when the fat particles are broken down very finely. The milk is pumped through a tiny hole, which puts it under pressure of 250-bar. We do this so that no oily layer occurs on the top of tea or coffee, and consumers can enjoy a consistent taste throughout the use of their milk. The last thing we want is for milk to be full cream at breakfast and fat free at dinner!”

“Lastly, we fill our milk in what is called a ‘clean fill environment’. This is done so that the milk does not come into contact with airborne bacteria, because milk exposed to air spoils faster than milk kept in a clean environment. The combination of all these processes has enabled us to give the consumer the benefit of a longer shelf life.” adds Pretorius.

While it’s important to note that the requirement for reduced fat content in milk also applies to the rest of the dairy category, it is also good to know that discerning consumers can continue to enjoy the same great taste and quality that is so much a part of what we love about Clover.