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Tiger Brands says its recently launched Albany Bread-On-The-Streets (BOTS) initiative is creating income-generating opportunities for entrepreneurs while helping the company expand the distribution footprint of its Albany bread business.
More than 800 BOTS stands are already operating across South Africa, with the food producer aiming to expand the network to 3,000 stands within the next year while creating the same number of entrepreneurial opportunities.
The bread stands are located in high-traffic areas such as taxi ranks, bus stations and busy roadside locations near Albany bakeries in Gauteng, the Western Cape, KwaZulu-Natal, Mpumalanga and the Free State. Tiger Brands plans to roll out the initiative to additional provinces as the programme grows.
Quinton Swart, MD of Tiger Brands’ bakeries division, said the initiative was designed to strengthen Albany’s position in South Africa’s highly competitive bread market while also addressing unemployment.
“BOTS allows our Albany business to compete more effectively in a highly competitive local bread market, while bringing our product closer to consumers, ensuring accessibility and freshness,” said Swart.
“But in addition to expanding our route-to-market, it’s making a contribution to our country’s unemployment rate. The programme demonstrates how commercial growth and social impact can work together.”
The expansion comes against a backdrop of persistent high unemployment, particularly among young South Africans.
According to Stats SA’s Quarterly Labour Force Survey released this month, nearly 5-million people between the ages of 15 and 34 are economically inactive, while unemployment in the age group stands at 47.4%.
Under the programme, Albany bread is delivered directly to entrepreneurs through the company’s distribution network. Tiger Brands said this ensures a reliable supply of fresh bread and allows small-scale vendors to operate without carrying significant inventory risk.
On average, each entrepreneur sells between 20 and 30 loaves a day and earns about R2 profit per loaf. Entrepreneurs who operate daily can generate an income of roughly R1,300 a month.
To lower barriers to entry, Tiger Brands provides each entrepreneur with a branded Albany bread stand valued at about R2,700, as well as marketing material to support sales.
Entrepreneurs are recruited through referrals from existing trade customers and community networks.
“BOTS shows that growing our business and creating opportunities for others do not have to be separate ambitions,” said Swart.
“As we expand the network, more people will have the opportunity to earn, learn and build greater economic independence while becoming part of Albany’s growth story.”