Clover Industries

Clover Industries is a South African branded consumer-goods group whose origins lie in the dairy-farming communities of the Natal Midlands. Its institutional history began in 1898, when farmers met in Mooi River to discuss creating a butter factory. The resulting organization, Natal Creamery Ltd, developed from a cooperative-oriented dairy operation into a national milk-processing and distribution business. During the first decades of the twentieth century it expanded beyond its original base, supplying milk in Pietermaritzburg, sending products to Johannesburg, and acquiring the Johannesburg Milk Supply Company in 1906. By 1932, its activities covered 32 centres across the country. The organization was formally registered under South Africa's cooperative framework in 1923 and adopted the name National Co-operative Dairies Ltd in 1934 after approving a fully cooperative operating model. This cooperative heritage remained important to Clover's identity, but the business gradually evolved into a broader branded-foods enterprise. Clover S.A. (Pty) Ltd was established in 1994, and the company entered a series of strategic partnerships with international food companies. A joint venture with Compagnie Gervais Danone began in 1995, followed by the creation of Danone Clover (Pty) Ltd in 1998. These arrangements supported expansion beyond basic milk processing into beverages and other value-added dairy products. A major corporate transition occurred in 2003, when National Co-operative Dairies was converted from a cooperative into a public company and approved the name Clover Industries Ltd. Clover Holdings was unbundled in 2004, leaving Clover Industries as the holding company of Clover S.A. The group described itself at that stage as one of South Africa's largest branded consumer-goods companies and a leading dairy producer, manufacturer and marketer. Its ownership and capital structure continued to change during the following decade. Hosken Consolidated Investments became a black economic empowerment partner, while Clover adjusted its interests in joint ventures with Danone and established an ingredients venture with Fonterra of New Zealand. Clover broadened its portfolio through acquisitions, minority-interest purchases and new partnerships. It bought Real Juice Co. Holdings from AVI in 2012, increased its interests in operations in Botswana and the Manhattan business, and formed Clover Waters with Nestlé in 2013. The latter venture expanded the group's involvement in branded and value-added beverages, including products associated with Nestlé brands such as Pure Life and Nestea in sub-Saharan markets. A Clover Futurelife joint venture was established in 2014 to develop a functional dairy-based product. The company undertook a substantial capital restructuring in 2010. Among other changes, ordinary shares were separated from milk-supply arrangements, restrictions on who could hold ordinary shares were removed, and preference shares were converted into debt-only instruments. Clover Industries subsequently listed on the main board of the Johannesburg Stock Exchange on 14 December 2010. Its business activities included dairy and non-alcoholic beverage production, chilled and ambient distribution, and sales and merchandising for fast-moving consumer goods. In 2019, Clover was acquired by Milco, a newly formed consortium led by Israel's Central Bottling Company, in a transaction reported at approximately $354 million for 59.5% of the company. The takeover led to Clover's delisting from the Johannesburg Stock Exchange. The transaction generated opposition from Palestinian solidarity organizations, some South African trade unions and other civil-society groups, which raised concerns about the prospective owner's Israeli operations, employment consequences and competition issues. Brimstone Investments, an initial consortium participant, withdrew from the deal. Following the acquisition, Clover continued to be associated with branded dairy, beverage, distribution and fast-moving consumer-goods activities, although its post-delisting corporate structure and detailed current operations are not fully documented in the supplied reference material.

Clover's origins are traced to 1898, when farmers in Mooi River in the Natal Midlands began discussing the creation of a butter factory. Natal Creamery Ltd was subsequently established under the Natal Companies Act, with Joseph Baynes starting the first Natal butter factory on his farm Nel's Rust in 1899. The organization began milk distribution in Pietermaritzburg in 1902, sent milk to Johannesburg from 1903 and acquired the Johannesburg Milk Supply Company in 1906. The business developed as a cooperative-oriented dairy network. It established or operated facilities including the Heilbron Government Creamery, was registered under the Co-operatives Societies Act in 1923 and had expanded to 32 centres by 1932. In 1934, the name changed to National Co-operative Dairies Ltd after the adoption of a fully cooperative-style system. The modern corporate structure emerged in the 1990s. Clover S.A. was created in 1994, followed by a partnership with Danone in 1995 and the establishment of Danone Clover in 1998. Clover Holdings was formed in 1997 as a holding company. In 2003, National Co-operative Dairies was converted into a public company and renamed Clover Industries Ltd. The following year, Clover Holdings was unbundled and Clover Industries became the holding company of Clover S.A. Expansion during the 2000s included a black economic empowerment investment by Hosken Consolidated Investments, a Clover-Fonterra ingredients joint venture, changes to the Danone beverage relationship and the acquisition of a majority interest in Mayo Dairy. In 2010, Clover sold its remaining 45% interest in Danone Clover to Danone and completed a capital restructuring that separated ordinary-share ownership from milk-delivery arrangements. Clover Industries listed on the JSE main board on 14 December 2010. The group continued diversifying during the 2010s. It bought Real Juice Co. Holdings from AVI in 2012, acquired minority interests in Clover Botswana and Clover Manhattan, formed Clover Waters with Nestlé in 2013 and established a Clover Futurelife joint venture in 2014. Its operating model combined production of dairy and non-alcoholic beverages with chilled and ambient distribution and fast-moving-consumer-goods sales and merchandising. In 2019, Milco acquired control of Clover and the company was delisted from the JSE. The takeover was contested by Palestinian solidarity organizations and trade unions, which raised allegations and concerns relating to the Central Bottling Company's operations, labor effects and competition. The supplied sources do not provide enough detail to establish the complete post-acquisition corporate history or current leadership structure.

• 2019

  Milco takeover and delisting

  [1]Clover Industriesen.wikipedia.org

  Milco acquired control of Clover, after which Clover was delisted from the JSE.

• 2013

  Clover Waters formed with Nestlé

  [1]Clover Industriesen.wikipedia.org

  A 70:30 Clover-Nestlé venture expanded the group's value-added beverage portfolio and sub-Saharan market opportunities.

• 2010

  Capital restructuring and JSE listing

  [1]Clover Industriesen.wikipedia.org

  Clover restructured its capital and listed on the main board of the Johannesburg Stock Exchange on 14 December.

• 2003

  Cooperative converted into public company

  [1]Clover Industriesen.wikipedia.org

  National Co-operative Dairies was converted into a public company and renamed Clover Industries Ltd.

• 1994

  Clover S.A. established

  [1]Clover Industriesen.wikipedia.org

  Clover S.A. (Pty) Ltd was established as the foundation of the modern branded consumer-goods business.

• 1934

  Name changes to National Co-operative Dairies

  [1]Clover Industriesen.wikipedia.org

  The organization adopted a fully cooperative-style system and changed its name to National Co-operative Dairies Ltd.

• 1906

  Johannesburg Milk Supply Company acquired

  [1]Clover Industriesen.wikipedia.org

  Natal Creamery expanded into the Johannesburg market through the acquisition of the Johannesburg Milk Supply Company.

• 1899

  First Natal butter factory begins operation

  [1]Clover Industriesen.wikipedia.org

  Joseph Baynes started a butter factory on his farm Nel's Rust, while Natal Creamery Ltd was registered under the Natal Companies Act.

• 1898

  Farmers plan a Natal butter cooperative

  [1]Clover Industriesen.wikipedia.org

  Farmers meeting in Mooi River discussed establishing a butter factory and approved cooperative principles and the Natal Creamery name.

A South African branded dairy and beverage group combining cooperative agricultural roots with large-scale consumer-goods manufacturing, distribution and merchandising.

• Dairy

  Dairy products

  Clover's historic and central product area comprises milk and other dairy products. The business developed from butter production and milk distribution into a broad branded dairy portfolio supported by processing, chilled logistics and national retail distribution. The supplied material does not specify every current product line.

• Beverages

  Non-alcoholic beverages

  Clover manufactures and markets non-alcoholic beverages, including activities developed through its former Danone beverage relationship and later beverage ventures. The category forms part of the group's broader move from traditional dairy into value-added branded consumer products.

• Fruit juice · 2012

  Real Juice

  Real Juice Co. Holdings was acquired from AVI in 2012, adding a recognized juice business to Clover's beverage portfolio. The reference material identifies the acquisition but does not provide a complete list of Real Juice products or current ownership arrangements.

• Bottled water and beverages · 2013

  Clover Waters

  Clover Waters was created in 2013 as a joint venture in which Clover held 70% and Nestlé held 30%. It was intended to expand value-added and branded beverage activities, with links to brands including Nestlé Pure Life and Nestea and opportunities in sub-Saharan Africa.

• Functional foods · 2014

  Functional dairy-based products

  The Clover Futurelife joint venture, established in 2014, was created to launch a functional dairy-based product. The supplied material does not specify the final product range or its current status.

• 2019

  Opposition to the Milco takeover

  The proposed takeover by Milco, led by Israel's Central Bottling Company, was opposed by BDS South Africa, Palestinian solidarity organizations and several South African trade unions. Critics raised allegations concerning the consortium's activities in Israeli settlements, possible job losses, alleged anti-competitive conduct and human-rights issues. The objections formed part of public and labor opposition to the transaction rather than a finding that Clover itself had committed wrongdoing.

  Source

Read more

• 2019

  Accept the Milco takeoverM&A

  Background

  Milco, a newly formed consortium led by Central Bottling Company, sought control of Clover. The transaction attracted opposition from labor and Palestinian solidarity groups.

  Action taken

  Milco acquired 59.5% of Clover in a transaction reported at approximately $354 million, and Clover was subsequently delisted from the JSE.

  Aftermath

  Clover became privately controlled rather than a JSE-listed company. Brimstone Investments withdrew from the original consortium, while critics continued to challenge the transaction's labor, competition and human-rights implications.

  Reported transaction value. (2019)

  Source

• 2012

  Acquire Real Juice Co. HoldingsM&A

  Background

  Clover was broadening its business beyond core dairy into branded beverages.

  Action taken

  Clover acquired Real Juice Co. Holdings from AVI Limited.

  Aftermath

  The acquisition expanded Clover's juice and non-alcoholic beverage portfolio.

  Source

• 2010

  Undertake capital restructuringStrategy

  Background

  Clover sought to improve its capital structure and remove the historical connection between ordinary-share ownership and milk-supply agreements.

  Action taken

  The company removed the restriction that only milk producers could hold ordinary shares, repurchased ordinary shares from Hosken Consolidated Investments, converted preference shares into debt-only instruments and completed related restructuring.

  Aftermath

  The restructuring helped prepare Clover for public equity funding and preceded its listing on the JSE main board in December 2010.

  Source

• 2003

  Convert the cooperative into a public companyStrategy

  Background

  Clover's cooperative structure limited the ways in which capital could be raised and ordinary shares were linked to milk-producer participation.

  Action taken

  National Co-operative Dairies was converted into a public company and renamed Clover Industries Ltd.

  Aftermath

  The change created the corporate structure used for later expansion, partnerships and eventual JSE listing.

  Source

1. 1Clover Industriesen.wikipedia.org