Latest news with #LangebergandAshtonFoods
IOL News
16-05-2025
- Business
- IOL News
Tiger Brands exits deciduous canned fruit business, establishing R150 million community trust
JSE-listed Tiger Brands has exited its deciduous canned fruit business five years after it said it could do so for R1 while also setting up a R150 million community trust to benefit the Langeberg community. Image: Tiger Brands/Facebook JSE-listed Tiger Brands has exited its deciduous canned fruit business five years after it said it could do so for R1 while also setting up a R150 million community trust to benefit the Langeberg community. In a statement, the company, said this deal would ensure 'a sustainable business' and protect 'over 3 000 permanent and seasonal jobs'. Langeberg and Ashton Foods was founded in 1940, and its products are sold into the retail market under the Koo, Gold Reef and Silverleaf labels. Tiger Brands will also complete an effluent plant upgrade with a further investment of R31m to ensure 'the operations continue to adhere to environmental regulations'. Tiger Brands CEO, Tjaart Kruger, said on Friday that the sale followed 'an extensive search for a viable buyer over the last five years'. Noting that the deal is in the best interests of all stakeholders, he said that the 'success of this sale will ensure the sustainability of the South African deciduous fruit industry and consequently improve the livelihoods of the Langeberg and Ashton Foods employees and the broader communities in these areas'. Tiger Brands, South Africa's largest food company, made this announcement just days after it said it would settle a class action lawsuit that was the result of a Listeria outbreak in January 2017, which was traced back to an Enterprise Foods factory. The value of the disclosure was not announced, Its disposal of the deciduous canned fruit business, Langeberg and Ashton Foods, is to 'a capable and committed consortium comprised of parties with a vested interest in the sustainability of Langeberg and Ashton Foods and a cooperative of fruit growers in the Ashton area,' it said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The unit, located 180km east of Cape Town, provides employment to more than 3 000 permanent and seasonal employees and 'is an important contributor to the region's economy,' said the company. Tiger Brands said that the consortium buying the company was made up of Ashton Fruit Producers Co-operative as well as an unnamed development finance institution. The Ashton Fruit Producers Co-operative, established in 2020, is made up of member producers from the Robertson, Ceres, Breederivier and Klein Karoo areas. The deal is set to benefit the broader Langeberg community through socio-economic development initiatives, and the Community Trust will ultimately hold a beneficial interest equal to 10% in the new company. Langeberg Municipality, previously known as the Breede River/Winelands Municipality, is home to around 100 000 people. 'Tiger Brands has been part of the Langeberg region and its communities for many decades. The establishment of the Community Trust is a notable milestone for the region, as Tiger Brands remains committed to the distribution of social and economic benefits to the community of Langeberg, long after our exit. This contribution is aligned with our purpose to nourish and nurture more lives every day,' said Kruger. Anthony Dicey, Chairman of The Ashton Fruit Producers Co-operative, noted that the canning factory had become 'integrated into the community and the local fruit growers that supply it'. The agreement is subject to regulatory approvals and is expected to be completed within the second half of this year. IOL
IOL News
16-05-2025
- Business
- IOL News
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 here to join the IOL News WhatsApp channel. IOL
