AgriNova Sugar SA Business Plan › Section 8 › Marketing, Sales & Distribution

8.1 Go-to-Market Architecture

AgriNova’s go-to-market is structured along divisional lines, with
each division operating its own sales and customer-development teams
under a coordinated Group commercial framework. The Group Commercial
Director oversees pricing strategy, key-account management, brand
investment and channel-conflict resolution.

8.2 Sugar Channel Strategy

Industrial channel — 60% of sugar volume

Industrial offtake (food and beverage manufacturers) is contracted on
a 1–3 year basis at SASA-notional pricing with negotiated specification
adjustments. AgriNova’s first-tier target customer list — to be locked
in by end Year 1 — comprises Coca-Cola Beverages South Africa,
Pepsi/Bevcorp, Tiger Brands, Premier Foods, RCL Foods and Mondelez.
Second-tier targets include Pioneer Foods, Distell, Heineken (CSD line)
and Nestlé South Africa.

The Master Plan Phase 2 framework (block exemption granted August
2026) supports local-procurement undertakings from these manufacturers,
providing a coordinated industry-government anchor for off-take
volume.

Retail channel — 35% of sugar volume

Retail sugar volume is split between private label (own-label sugar
packed for the major retailers) and branded sugars (under the AgriNova
Naturals umbrella). Private label is the higher-volume/lower-margin
segment; branded is lower-volume but margin-rich (16–22%). The major SA
retailers — Shoprite/Checkers, Pick n Pay, Woolworths and SPAR —
represent more than 80% of sugar retail volume in the country.

Export channel — 5% of sugar volume

Export sugar serves as the relief-valve for any seasonal surplus and
is dispatched primarily through the Hulett Refinery / Durban-bulk
terminal channel and the US TRQ allocation. Export volumes are highly
sensitive to global price movements; the Plan’s base case assumes 2.5%
of sugar volume to TRQ and 2.5% to opportunistic spot exports.

8.3 Bio-Industrial Channel Strategy

The 80 ML p.a. ethanol plant requires structured offtake to
underwrite the EPC investment. AgriNova’s commercial team is targeting
an offtake structure comprising:

• 60–70 ML p.a. under a 10-year fuel-blending take-or-pay agreement
  with a major South African oil company (PetroSA, Sasol, Engen or
  Astron)
• 10–15 ML p.a. of industrial alcohol (food-grade) supplied to
  beverage and pharmaceutical accounts at a 25–30% pricing premium to fuel
  grade
• 5–10 ML p.a. flexible balance available for spot industrial
  demand or export

Animal feed sales follow a different channel logic — direct sales to
commercial feedlots, dairy farmers and broiler integrators in the
high-density livestock corridors of KZN, Mpumalanga and the Free State.
Starch and glucose follow a B2B contract-manufacturing model with 2-year
rolling contracts to the major beverage and confectionery accounts.

8.4 Pricing and Discount Architecture

Pricing is governed by a three-tier discount framework that protects
the Group from concentration risk while creating commercial
flexibility:

8.5 Brand Strategy and Marketing Investment

AgriNova will invest in two brand platforms: AgriNova Naturals
(specialty sugar retail), launched Year 3, and AgriNova Energy (the
corporate face of the IPP and ethanol businesses), launched Year 5.
Marketing investment ramps from 0.4% of revenue in Year 1 to 0.9% by
Year 5, with the majority directed to retail brand activation and trade
marketing.

8.6 Logistics and Distribution

Outbound logistics are managed through a hybrid model: bulk sugar to
industrial accounts is dispatched by 25-ton tanker truck on a
daily-route basis from each mill; bagged sugar moves through a dedicated
18,000-pallet position warehouse in Durban with onward distribution by
third-party logistics providers; export sugar moves by rail (Transnet
Freight Rail) under a multi-year contract. Total annual logistics spend
at run-rate is approximately R260 million, governed by a Group-level
transport tender refreshed every three years.

8.7 Customer Acquisition Plan

The customer acquisition plan envisages onboarding 220 industrial
accounts and 4 retailers in Year 1; by Year 4, the active customer base
reaches 580 industrial accounts (sugar + bio-industrial) and 4 retail
chains across approximately 2,400 store doors.

8.8 Customer Retention and Service

Account retention is governed by a Customer Success function staffed
by 14 people at run-rate (Year 4). Retention KPIs are tracked monthly;
the Plan targets 96% revenue retention on industrial Tier-1 accounts and
88% on Tier-3 accounts. Net Promoter Score (NPS) is tracked quarterly
with a target of 45+ across the industrial customer base.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of AgriNova Sugar SA (Pty) Ltd.