Tiger Brands (TBS) – Leaning on Loyalty

Tiger Brands offered up another disappointing set of results as the few green shoots that emerged from its Consumer Brands division were insufficient to offset the poor Grains performance and the untimely weakness of TBS’ International business. In the report, we analyse TBS’ BuySmart loyalty and reward platform, explain how it works and quantify the rate at which consumers can accumulate rewards. We like BuySmart, however, remain skeptical of whether TBS can pull it off. Considering the impending sale of VAMP, we estimate the current market value of the business.