South Africa's Biggest Food Producer To Sell Canned Fruit Business For One Rand

Tiger Brands to sell Langeberg and Ashton Foods for 1 rand to a local consortium, refocusing on core South African operations.

The deal includes 8.3 million community trust and a supply agreement for Tigers KOO brand to ensure continuity and local benefits.

Tiger Brands stock up 5 in 2024 as it exits non-core assets and posts R3.06 billion 163.2 million profit amid strategic restructuring.

Tiger Brands Limited, the Durban-based packaged goods group chaired by South African business leader Geraldine Fraser-Moleketi, has agreed to sell its canned fruit division, Langeberg and Ashton Foods, for a symbolic one rand. This is part of the companys ongoing efforts to streamline its operations and concentrate on its core business in the local market.

The buyer is a new company formed by a consortium that includes the Ashton Fruit Producers Co-operative and a development finance institution. The agreement will see Langeberg and Ashton Foods sold as a going concern, keeping the business intact and continuing operations. The co-operative brings deep knowledge of the agricultural sector, which is expected to help sustain the companys long-term viability.

Langeberg and Ashton Foods is based in Ashton, a small town in South Africas Western Cape Province. It employs more than 3,000 permanent and seasonal workers and exports more than 80 percent of its canned fruit and purees. As part of the deal, Tiger Brands and the new company will enter into a contract manufacturing agreement to supply canned fruit for Tigers popular KOO brand.

To support the local community, Tiger Brands is also committing R150 million 8.31 million to establish a Community Trust, which will hold a 10 percent stake in the new business. The trust aims to fund local development projects, while the rest of the equity will be held by the consortium.

Tiger Brands, which has a market value of about 3 billion on the Johannesburg Stock Exchange , remains one of Africas largest listed consumer goods manufacturers. Since Fraser-Moleketi took the helm in 2020, the company has been working to recover from past challenges. Its stock is up more than 5 percent this year, reflecting renewed investor confidence.