Producing premium oils and fats, SD Guthrie International South Africa stands at the forefront of innovating the local food and beverage landscape. General Manager, Ruan Valentin, discusses establishing benchmarks for quality and sustainability in the dynamic African market.
FROM SUSTAINABLE SOURCING TO REVOLUTIONARY SOLUTIONS
South Africa (SA) boasts diverse and delicious cuisine influenced by its multicultural heritage. As a result, the country is seeing growth in the cooking oil and fats sector, with SD Guthrie International South Africa (SDGISA) leading the way.
SDGISA was established following Golden Hope Plantations Berhad’s 2004 investment in a former Unilever business, Hudson & Knight (Pty) Ltd.
Subsequently, in 2007, Golden Hope Plantations Berhad, Kumpulan Guthrie Berhad, and Sime Darby Berhad merged, forming what was then known as Synergy Drive and later renamed to Sime Darby Berhad – a multinational diversified conglomerate operating across several industries.
In 2017, the plantation division demerged to form Sime Darby Plantation, which was renamed as SD Guthrie Berhad in 2023. As the sole entity on the continent, SDGISA is a leader primarily focused on delivering customised oil and fat products to the Southern African region.
“Our facilities in SA include a refinery in Boksburg, Gauteng Province, which can perform both refining and modification processes. Additionally, we have a packing facility in Springs, also in Gauteng Province, which can pack into various formats, from 125-gram bricks to one metric-tonne intermediate bulk containers,” introduces Ruan Valentin, General Manager.
“Owning brands such as MASTERCRAFT™, Pastrex®, Crispa Gold, and Crispa Palm, and Holsum, we are well placed to meet the needs of our customers in the bakery, confectionery, and quick service restaurant (QSR) and hotel, restaurant, and catering (HoReCa) industries,” he continues.
Valentin emphasises that the diverse range of brands under SDGISA’s portfolio, combined with its dedicated team, enables the company to cater to a wide array of culinary needs across various sectors.
“With our in-house product innovation and development team, we can design specific blends for use in various applications, from ice cream to soup powders to spreads and chocolates, for cakes, bakes, and everything in between,” informs Valentin.
“Focusing more on manufacturers within the larger South African market, our products are delivered either through one of our third-party partners, distributors or wholesalers to our end users, enabling them to manufacture their products for consumer enjoyment.”
OILS OVER THE ORDINARY OFFERINGS
The modification of fats and oils involves changing their composition, structure, or physical properties to achieve specific characteristics or health-related goals.
One common method is hydrogenation, which is used to improve stability and structure, whereas interesterification rearranges fatty acids and triglyceride molecules. These modifications are often carried out to reduce saturated fat content or incorporate specific nutritional attributes.
“Having the capability to offer locally modified fats through hydrogenation and chemical interesterification allows us to custom-make and produce for various applications,” Valentin specifies.
Moreover, the SDGISA team is committed to continuous improvement and innovation to meet the evolving needs of its clients in the industry.
Hydrogenating oils offers several advantages for SDGISA, as this process enhances the quality of its products by improving their stability, shelf life, and texture.
“Hydrogenation allows us to cater to different types of applications, especially those in confectionery, stock cubes, and soup powders,” he outlines.
By utilising hydrogenation, SDGISA is not only able to meet diverse application needs but also innovate and customise products specifically designed to suit its customers’ unique requirements. Moreover, the team is committed to continuous improvement to meet the evolving needs of the industry.
“Having local hydrogenation capabilities allows us to innovate and develop tailored products, giving our customers confidence in our flexibility and dedication to meeting their needs,” Valentin proudly explains.
“Having the capability to offer locally modified fats through hydrogenation and chemical interesterification allows us to custom-make and produce for various applications”
Ruan Valentin, General Manager, SD Guthrie International South Africa
A SUCCESSFUL FORMULA
SDGISA’s oils and fats offer unique features that distinguish the company from competitors in the African market, contributing significantly to the company’s position as the leading supplier of infant formula.
“When it comes to infant-grade products and the production of infant formula, cereals, and other foods, contamination management is crucial. This starts with how the product is sourced, transported, processed, and finally delivered to the end customer as part of our process,” Valentin tells us.
“It requires a lot of technical expertise and know-how on managing the activities at each point in the supply chain to minimise risk and ensure it adheres to the strict specifications we aim for.”
Effective contamination management is essential in ensuring the safety and quality of products, as every step in the supply chain – from sourcing to delivery – requires meticulous attention and specialised knowledge to meet the stringent standards SDGISA strives to uphold.
PIONEERING RESPONSIBLE PALM OIL PRODUCTION
Being the first in Africa to achieve Roundtable on Sustainable Palm Oil (RSPO) certification is a significant milestone for SDGISA, both underscoring the company’s commitment to sustainable sourcing and building trust in the brand.
“Our RSPO certification gives us responsibility in the market, which means that we set the tone for the rest of the industry. Even though uptake in SA is still very low, it remains one of our key messages to the market,” Valentin assures.
“As a subsidiary of SD Guthrie Berhad, being supported by the group and all their activities on sustainability and responsible agriculture does give us the ability to supply customers who require this in their products.”
Indeed, SD Guthrie Berhad is the world’s largest producer of Certified Sustainable Palm Oil (CSPO) and a founding member of RSPO.
Primarily, SDGISA collaborates with multinational companies that have established sustainability targets.
“We are slowly seeing a shift amongst local manufacturers, and we see this as an opportunity to differentiate them from the rest of the market.”
Whilst the company is committed to sustainability initiatives that significantly influence its production processes, it also ensures its activities promote sustainability, maintain the high quality of its products, and allow it to remain competitive in the market.
“How we source the material is a key factor. Being fairly close to the end of the supply chain requires us to partner and work with players closer to the source to address issues on sustainability and responsible practices,” states Valentin.
Being a member of Supplier Ethical Data Exchange (Sedex) also helps ensure that SDGISA’s activities are ethical and comply with local laws and regulations across all engagements with regional partners.
“From an environmental perspective, we’re always on the lookout for ways to minimise our waste and ensure that what we do produce can be ethically and responsibly repurposed or reprocessed.
“Most of the waste we generate is processed into biodiesel and biolubricants – landfill is always the last option,” he elaborates.
PRIMED FOR A POWERFUL PERFORMANCE
The upcoming year promises to be a dynamic and busy 12 months for SDGISA, driven by the relentless demands associated with maintaining a thriving business.
As the company navigates challenges and opportunities, its commitment to excellence will guide it in managing a multifaceted agenda focused on growth and innovation.
“We’ve been on a growth trajectory regarding our financial performance over the last few years, which we define as needing to continue and build on,” Valentin reports.
To achieve its growth objectives, it is crucial for SDGISA to not only maintain its financial momentum but also enhance its market presence.
“We need to re-engage with our market and ensure we stay on top of and ahead of new requirements from our customers,” Valentin earnestly concludes.
SDGISA exemplifies the progressive intersection of quality, innovation, and sustainability within the food and beverage sector. The company not only meets the varying demands of the culinary landscape but also sets a benchmark for responsible sourcing and production practices.
By leveraging local insights and capabilities, it is poised to continue its growth and influence in a competitive market, ensuring it remains the preferred choice for quality oils and fats across the Southern African region.
As SDGISA embraces the future, its passion for high standards and sustainability will undoubtedly play a pivotal role in shaping a more responsible food industry.
