Tiger Brands to sell Langeberg and Ashton Foods to local grower-led consortium, securing more than 3,000 jobs
Sale to a capable and committed consortium, which includes local fruit growers, paves the way for ensuring a sustainable business and protecting over 3000 permanent and seasonal jobs.
Image: Simphiwe Mbokazi/Independent Media
Tiger Brands, one of South Africa's prominent food producers, has formally announced its sale of the Langeberg and Ashton Foods business, marking a significant step in its strategy to align its portfolio with its broader vision.
The sale agreement, which has been in the works for the last five years, will see the iconic business transition to a new owner, a newly formed company, known as NewCo, established by a consortium dedicated to the sustainability of the operations and the welfare of local fruit producers.
Based in Ashton in the Western Cape, Langeberg and Ashton Foods has been a cornerstone of the local economy since its inception in 1940, employing over 3,000 permanent and seasonal workers.
The decision to divest comes as part of a strategic move that Tiger Brands announced in May 2020, part of a larger effort to streamline its operations and focus on core business areas.
The Consortium behind NewCo includes the Ashton Fruit Producers Co-operative, a collective of local fruit producers, alongside a development finance institution aimed at creating jobs and improving livelihoods for the community while transitioning towards sustainable practices.
This collaborative effort underscores the consortium's commitment to preserving local interests, particularly regarding the sustainability of the deciduous fruit industry in the region.
Remarkably, Tiger Brands will sell the Langeberg and Ashton Foods business for the nominal price of R1, symbolising a philanthropic commitment rather than a conventional financial transaction.
In conjunction with this symbolic transfer, Tiger Brands has pledged R150 million to establish a Community Trust, intended to fuel socio-economic development within the Langeberg community. Notably, this Trust will hold a 10% beneficial interest in the newly formed company, ensuring ongoing community dividends from the business's operations.
The CEO of Tiger Brands, Tjaart Kruger, expressed optimism regarding the sale, highlighting its importance not just for the company, but for the local economy.
'Today's announcement proves the company's commitment to securing an outcome that is in the best interest of all stakeholders,' he stated.
'The success of this sale will ensure the sustainability of the South African deciduous fruit industry and consequently improve the livelihoods of Langeberg and Ashton Foods employees, as well as the broader communities in these areas.'
The sale process culminated in what Kruger called a 'long journey' to identify a partner capable of ensuring the business's sustainable future.
Anthony Dicey, Chairman of the Ashton Fruit Producers Co-operative, echoed this sentiment, affirming that the establishment of NewCo is a pivotal moment that aligns with the region's agricultural heritage.
In addition to the transition, Tiger Brands has committed to enhancing its environmental footprint by investing R31 million in an effluent plant upgrade, ensuring compliance with stringent environmental regulations.
This step reinforces the firm's dedication to sustainable practices, even as it exits the deciduous fruit sector.
The arrangement is contingent upon customary approvals from relevant competition authorities, and the completion of the sale is predicted within the latter half of the current year.
As this transition unfolds, both the community and the industry are poised to witness a new chapter for Langeberg and Ashton Foods, continuing its legacy of quality products while fostering local agricultural livelihoods. Get your news on the go, click
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