B NEW PRODUCTS Clover CEO Isham Vorster media and analysts yesterday on the company's Interim results. Picture: MARTIN RHODES Clover races to meet demand for yoghurt NICK HEDLEY CLOVER INDUSTRIES "That would only be from Industrial Writer Half Your 2035 2014 September, October, November. Revenue (Rbr) 465 4.32 It's part of the cyclicality of the CLOVER Industries, which Pretax (Rmy 2172 business, " Mr Vorster said carted making yoghurts and Nat income ( Ami 2105 153 R He said SA experienced a ancards this year, will spend DiToad HEPS (9) 1036 milk shortage in the middle of 865m on Installing another Dividend PS (c) 226 150 last year, driving competition for yoghurt production Ine because raw milk from farmers and ulti- the one it bought from Dairy. when Clover stopped distri- mately leading to higher prices Belle has run out of capacity two buting Danone products. This stimulated supply as farm- years earlier than expected. Clover said yesterday its ers grew capacity partly by buy "We are undersupplying the headline earnings for the six ing out smaller farms as they market by about 60% 704, months ended December grew became more sophisticated Clover CEO Johann Vorster said 41.3% to 8189m, as revenues Clover reported a "strong se restorday, referring to the firm's rose 79% to H4./bn. of first-half results", said Kapiso inability to match recaller orders. The company gave up some Asset Management imustmom "The launch went much better market share as it hiked selling analyst Dirk van Vlaanderen than we anticipated." prices and margins. Mr Vorster The company also has a Clover had expected the Said Clover would not mise good pipeline of brand eaten- Bloemfontein DairyBelle facility prices in the six months ending sions and new product launchs it took over in January to meet June and would rather absorb and has had a very positive start cophurt demand for two years, recent input cost increases. to the launch of its Clover but demand had outstripped A looming concern was the poghunt and custard brands, capacity within two months possibility of a $4 4% milk sur which should add further Mr Vorster said the new pro- plus this year, or three times the support to the second half," Mr cessing and packaging line usual surplus, which would place wan Vlaunderan sold. would be installed at the same pressure on prices. facility from September. Clover bought DairyBelle's tophurt and UHT "long-Ife" milk businesses citective in Jan- wiry, after the conclusion of its service agreement with Danone allowed it to start making these and other high-margin products. But while Clover no longer sup plics Danone with raw milk, it still has to phase out its distri- bution and merchandising ser vices for Danone, to the end of June, to satisfy a Competition Commission ruling Clover was working on find- mg new third parties to dis- tribute for, "but we would ideally Eke to keep that distribution capacity for ourselves so that we can grow into it", Mr Wurster aid The company is launching a swathe of new products this pear, including its Clover Classic pothurt range in addition to DairyBelle's Fruits of the Forest brand, and desserts imported from Italy and custards Following its capital invest- ment programme, Clover had Excess production capacity with some facilities operating at only 204-50% of capacity Mr Worster said that while Astribution capacity was fully wood, some of this would be freed