About Us
            Company Profile
            Vision and Mission
            Code of Conduct
            Historical Overview






















 




Home > About Us

   Company Profile                                                             



Milkworx is a wholly South-African owned and operated, award-winning manufacturer and supplier of ice cream, soft serve, frozen novelties, frozen yogurt and related ice cream products to the domestic market.

We have extended our product range to dairy products such as fresh milk, cream, yoghurt, drinking yoghurt, maas drinks and dairy blends. We are dedicated to supply quality products through best practices to customers in the food, beverage and hospitality industries.







 
   Code of Conduct
    
   
    Key Principals

  • a. Ethics: Milkworx supports a program of self-enforced ethical standards. We stand for honesty, integrity, respect, trust and responsibility.

  • b. Social Accountability: Our Policy covers social accountability and labour conditions and ensures that the requirements are met and that all local rules and regulation and all international recommendations and agreements are fulfilled.

  • c. Governance: The company seeks to balance conscientious management of resources with the interest of stakeholders.

  • d. Financial Returns: Implies that the company’s profits sustain long-term growth and shareholder value.

  • e. Employment Practices: The company fosters employee development, diversity, empowerment, fair labour practices, competitive remuneration and benefits, and a safe, harassment-free, family-friendly work environment.

  • f. Business Relationships: Implies that the company is fair and honest with all business partners, and monitors the CSR of its business partners to ensure they are not principally inconsistent with those of the company.

  • g. Products and Services: Means that the company offers the highest level of service and product quality.

  • h. Community Involvement: Means that the company has an open, honest, transparent, proactive relationship with the community.

  • i. Environment Protection: Milkworx is committed to maintaining high environmental standards that meet or exceed those established by all relevant environmental laws, regulations and other applicable.

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   Historical Overview



Milkworx was formed out of the combination of the Avondale Ice Cream and Creamstar Ice cream plants and was one of the first AltX companies to be reverse-listed onto the JSE via the Acuity Group Holdings vehicle. This brought two well-known, Pretoria-based ice cream brands together in one group.

At the time of listing Milkworx received much attention and all retailers opened their doors for business with this newly listed ice cream supplier, with offered prices much lower than their international suppliers. Contracts were signed with the major retailers such as Pick ‘n Pay, Shoprite, Score and Spar. Creamstar followed a pricing strategy of discounting (low margins, high turnover). Retailers typically demanded to purchase on account, asking for discounts, build-in rebates and thus dictating terms and conditions. With their focus on growth in sales and not monitoring profits, goods returns and a lagged debt collection, the Creamstar division soon experienced cash-flow problems as retail put further pressure on growth margins.

The turnover of board directors and managers lead to the interruption of managerial functions at both administrative and operational levels. With few proper systems and procedures in place, sales performance, profitability and staff morale declined.

Avondale on the other hand showed a steady growth in turnover and they secured co-manufacturing contracts and supply to the McDonalds group, Unilever and family restaurants in the hospitality industries.

The CEO embarked on a restructuring programme to position Milkworx for a sustained success in the future. During the first phase of re-structuring (after the passing away of the chairman at the time), the group saw decisive action:

  • Withdrawal from retail supply and reduced supply to a few retail stores in the Pretoria region only
  • Closure of the loss-making Alrode plant in Johannesburg
  • Staff retrenchments
  • Implementation of fresh milk application at Avondale
  • Cost cutting initiatives
  • Increased Debt collection drive

Operation Decisions

When the price of milk powder soared worldwide, the Avondale plant could switch from powder milk usage to fresh milk application within 3 months.

This showed organizational agility in responding to shifting market conditions and emerging opportunities. Central to the whole restructuring process was an intense focus on health and safety standardization and product re-design in order to secure existing and future contracts with multinationals.


Historical turning points in 2007 were:

  • Change from milk powder usage to fresh milk resulting in an improved product and the production of by-products such as fresh milk, cream, yoghurt, drinking yoghurt, maas and dairy-blends.

  • HACCP accreditation for the Creamstar plant

  • Opening of the first concept store/factory shop in Silverton

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