The document provides an introduction to Colors Group, a South African agri-business focused on fruit. It discusses that Colors Group is the largest privately owned fruit company in South Africa and the country's 3rd largest exporter. It also outlines Colors Group's vertically integrated business model, key concepts around sustainability, and an overview of projects from its nonprofit foundation which focuses on social, environmental and economic sustainability across its operations.

1. Introduction to the Colors Group
April 2009
Introduction to Colors Group

2. CONTENTS
o Who we are
o Market Statistics
o Key Business Concepts
o Sustainability Overview
o The Colors Foundation
o Projects Update
Introduction to Colors Group COLORS GROUP ©

3. WHO WE ARE
• South African agri-business focused on the fruit industry.
• Formed in 1997 after deregulation of the South African fruit industry.
• Now the largest privately owned fruit company (by sales) in South Africa and
the country’s 3rd largest fruit exporter.
• Supply fruit across all major fruit categories.
• Vertically integrated business model with direct interests that include:
• Fruit farms (15% of supply)
• 7 Pack-houses
• Freight Forwarding (Aspen Logistics)
• Packaging Distribution (Prisma Packaging)
• Head office in Paarl, South Africa
• International offices in Canada, the UK and Belgium
Introduction to Colors Group COLORS FRUIT ©

4. MARKET STATISTICS
• Export Volume Growth (standard cartons):
18000000
16000000
14000000
Standard Cartons
12000000
10000000
8000000
6000000
4000000
2000000
0
Year
Introduction to Colors Group COLORS FRUIT ©

5. MARKET STATISTICS
• Exports per Destination (2008):
USA,
AFRICA, 2% CANADA, 9%
2%
RUSSIA, 4%
UNITED
KINGDOM, 26%
EUROPE, 31%
MIDDLE EAST,
16% FAR
EAST, 7%
NORWAY /
SWEDEN,
2%
IRELAND, 1%
Introduction to Colors Group COLORS FRUIT ©

6. KEY BUSINESS CONCEPTS
• Act as a “bridge” of operational and service excellence…matching the supply
from a production-base of top South African producers with the demands of
top customers around the world;
Range of Supply: Sizes, Grades,
Range of Needs: Pricing, sizing,
packing grades, timing...
Varieties, Seasons...
Producers Customers
Colors
Introduction to Colors Group COLORS FRUIT ©

7. KEY BUSINESS CONCEPTS
• To exert our influence across the value chain:
Brand Development & Demand Stimulation
Retail Customers
Specialist Client Services - Packaging and Logistics
International Offices: Sales & Technical Services
Marketing & Export Management
Freight and Logistics Management
Packaging Material Supply
Grading, Packing and Cooling
Technical Services – Food Safety, Quality & Ethical.
Primary Fruit Production
R&D - New Cultivar Development
Introduction to Colors Group COLORS FRUIT ©

8. MACRO STRUCTURE
EXECUTIVE
CENTRAL MARKETING OPERATIONS
FARMING DIVISION
OFFICE DIVISION DIVISION DIVISION
Finance
HR
Legal
R&D
Sustainable Business
New Business Development
/ Investments
Introduction to Colors Group COLORS FRUIT ©

9. SUSTAINABILITY OVERVIEW
• Sustainable Business has been recognized as a key strategic driver for the Colors Group
• A specialized function was created in 2008 to house the various projects being undertaken by
Colors in the fields of Sustainability, including:
• Social up-liftment
• Ethical practices/trading
• Environmental stewardship
• Quality and food safety standards
• Business process improvement
• The purpose of this function is to embed the concept of “sustainable business” in the ethos, culture
and behavior of the Colors Group and its supply-base.
• This is done through identifying, planning, resourcing, supporting and delivering on projects across
the broad subject of sustainability.
Introduction to Colors Group COLORS FRUIT ©

10. SUSTAINABILITY OVERVIEW
We have the following conceptual framework guiding us:
• Holistic approach to business that integrates the management of Economic, Natural and
Human/Social Capital so as to achieve sustainability.
• Acknowledges that sustainability has to take care of all three capitals.
• Deliver this through detailed actions and programs directed at our people, products and processes.
Introduction to Colors Group COLORS FRUIT ©

11. SUSTAINABILITY OVERVIEW
Product
People Process
Develop
Human/Social Capital
Protect
Natural Capital
Grow
Economic Capital
Introduction to Colors Group COLORS FRUIT ©

12. THE COLORS FOUNDATION
• The Colors Foundation serves to drive the sustainability strategy of the Colors Group.
• The Colors Foundation has been created and is set up as a Section 21 entity (not-for-profit
company).
• To date the funding for the projects that now form part of the Foundation have been funded by the
Colors Group (equivalent of 32% of 2009 Group Profit).
• The intention is to use the Foundation as the vehicle to attract and deploy donor funds, thereby
enabling it to expand its “reach” more quickly across the Colors supply-base, and beyond.
• The Foundation incorporates the following 3 elements:
Introduction to Colors Group COLORS FRUIT ©

13. THE COLORS FOUNDATION
Colors Academy:
• Led by a dedicated team
• Focused on developing human/social capital trough the delivery of a suit of services and programs
to people living and working on farms and in pack-houses across the Colors supply-base.
• Three areas of activity:
• Training and Education
• Health
• Social Up-liftment.
• Two “incubator" sites developed at the Group’s Theewaterskloof Farms and Novo Packhouse*
* Now on-hold due to recent fire
Introduction to Colors Group COLORS FRUIT ©

14. THE COLORS FOUNDATION
Colors Standards:
• Led by a dedicated team
• Focused on ensuring all internal and relevant external standards and systems are applied and
upheld.
• Houses all standards-based elements including ethical trading, food safety, water quality, quality
management & continuous improvement systems, GAP , HACCP systems etc
Introduction to Colors Group COLORS FRUIT ©

15. THE COLORS FOUNDATION
Colors Environment:
• Led by a dedicated team.
• Focus on the conservation and building of the Natural Capital available to the Colors organisation
both now and into the future.
• Projects and interventions include Carbon & Water Footprinting, Emissions & water-use
Reduction, Soil Health, Sustainable Farming, Bio-diversity protection, etc.
Introduction to Colors Group COLORS FRUIT ©

16. PROJECTS UPDATE
Colors Academy
• Colors Academy Theewaterskloof & Novo Packhouse Incubators - multiple education, health and
social upliftment projects.
• Theewaterskloof Sustainable Community project.
Colors Environment
• Colors Carbon LCA Project.
• Colors Water Footptinting Project
• Detailed Energy Audit Project
• Biochar Pilot Project.
• Conversion to Solar Water Geysers Project.
Colors Standards
• Sustainable Farming Manual
• Ethical Performance Improvement Strategy
• Colors Water Quality Improvement Project
• Nature Farming Project
(A project summary is attached as an addendum to this presentation .....Update on Colors
Foundation.doc
Introduction to Colors Group COLORS FRUIT ©

17. CONCLUSION
• Colors is committed to building an organization that stands the test of time, i.e achieves
sustainability.
• This demands that:
• Grow Economic Capital
• Develop Human/Social Capital
• Conserve Environmental Capital
• Colors and its supply-base represent 10% of the South African fruit farmers – a
• a large constituency where a significant impact can be made.
• looking to Colors to provide leadership
• Colors Foundation is equipped to lead this transformation
• Vision, commitment
• Human resources and leadership
• The Colors Group has committed equivalent to over 30% of net profit over past two years to fund the
Colors Foundation/Sustainability Projects.
• Need to attract funding partners to enable the expansion of these programs across the Colors
supply-base first, and then to the broader South African Fruit Industry.
Introduction to Colors Group COLORS FRUIT ©

18. THANK YOU!
Introduction to Colors Group COLORS FRUIT ©