Moerse Tier

I should know better to leave well enough alone.  But I can't really ignore this.  I need to mention that I am not writing about Tiger Brands because jungle jim works for them (or as the Business Day once said, moonlights for them).  I am intrigued by their new stance on suppliers.

I asked the question in my last post as to whether Tiger would extend their demands to critical suppliers.  In a very presumptuous email Dave Webster confirmed that they would, why would they not?   I'll tell you why Dave - it goes like this.

Tiger Brands (TBS) is a listed company.  Which means that Peter and co are accountable to the shareholders (I am not one).  If they decide to start to enforce their somewhat lofty wishes (and I quote)

It is also confirmed that suppliers who are deficient in these expectations will be granted a three-month grace period, with Tiger Brands thereafter being forced to consider alternatives.

then they may have to start looking for new rice suppliers for  Tastic, peanut suppliers for Black Cat, sugar suppliers for Maynards and Beacon and the list goes on.  How is this then going to affect the price of these consumer goods?  Will consumers then start choosing other brands because Tiger has priced themselves out of the market?

It's highly likely that they will.  And where does this leave the shareholders and Matlare's options. 

This leaves me with two possible conclusions.

1. They are pushing an empowerment agenda over a business strategy which has the potential to erode their share price.
2. It's a bluff that is going to be exposed.

I somehow think it's going to be the latter.  But if there are any shareholder activists who are Tiger Brands shareholders - perhaps they'd like to check with Tiger as to what their plans are.