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IOL News
3 days ago
- Business
- IOL News
Tiger Brands reports 78% earnings jump while addressing listeriosis claims
Tiger Brands, a JSE-listed company, has reported a remarkable 78% increase in earnings per share for the first half of the year, driven by the sale of non-core units. As the company navigates the complexities of settling claims from the 2017 listeriosis outbreak, it remains committed to achieving a resolution 'as soon as possible' JSE-listed Tiger Brands, which recorded a 78% jump in earnings per share in its first half to the end of March on the back of sales of non-core units, reiterated its resolve to settle claims relating to 2017 massive listeriosis outbreak 'as soon as possible'. Tiger Brands has not disclosed the full value of the settlement, which it said it had presented as a total amount at the end of April, although it has stated it has enough insurance to cover the claims. In a recent statement, it also refused to accept liability. 'The offer is subject to certain conditions and has been made without admission of liability and in full and final settlement of the claims of the claimants,' it said. What has been called the largest listeria outbreak in South Africa's history happened in 2017. It was traced to Tiger Brands' Enterprise Foods facility in Polokwane and resulted in 218 deaths and close on 1,000 infections. The settlement process now moves quantifying individual damages for eligible claimants as well as attorneys taking those offers to the plaintiffs. 'Tiger Brands and its insurers remain committed to achieving a just resolution of the listeriosis class action as soon as possible,' it said. Africa's largest food producer posted a 17.6% jump in headline earnings per share, a figure that strips out profit from sales of units, to 951c for the interim period, despite ongoing inflationary pressure and a consumer base still watching every rand. Tiger Brands' price inflation of 2.1% helped offset the flat volumes, leading to revenue improving 1.9% to R18.5 billion. 'Despite early signs of economic recovery offering some much-needed relief, consumers remain under pressure and continue to seek value in their food basket,' said CEO Tjaart Kruger. The company is sticking to its cost-cutting plans, optimising logistics, engineering value into recipes and packaging, and squeezing more efficiency out of its factories, to protect margins and keep products affordable. Tiger Brands continues to focus on trimming non-core assets, with the sale of the Baby Wellbeing division and a 24.4% stake in Chile-based company, Empresas Carozzi bringing in R4.4bn during the period and another R600 million received in April. Having sold those entities, as well as its Langeberg & Ashton Foods business, it said it has entered into a deal to sell its Wheat Mill and Maize unit in Randfontein. Tiger Brands did not provide more details, although it noted that selling non-core entities to ensure it has a 'competitive edge' and can win market share. Shareholders are set to benefit from a special dividend of 1 216 cents per share, returning R1.8bn to investors, pending approval from, the South African Reserve Bank. Management says this strikes a balance between rewarding investors and maintaining the flexibility needed for sustainable growth. 'Tiger Brands has achieved growth in line with guidance, underpinned by a continued focus on driving value for consumers, execution of key strategic priorities, and implementing continuous improvement initiatives of logistics optimisation, value engineering and factory efficiencies,' it said. IOL
Daily Maverick
18-05-2025
- Business
- Daily Maverick
Tiger Brands passes the fruit basket to growers in sale of Langeberg & Ashton Foods
On Friday, 16 May, Tiger Brands, South Africa's largest food producer, announced the sale of its deciduous fruit business, Langeberg & Ashton Foods, to a consortium led by local fruit growers for a nominal sum of R1. The deal includes a R150-million commitment by the food producer to establish a community trust aimed at socioeconomic development initiatives benefiting the Langeberg community. This trust will hold a 10% beneficial shareholding in NewCo, with the consortium retaining the remaining 90% equity. The sale will also safeguard more than 3,000 permanent and seasonal jobs in a region heavily dependent on the deciduous fruit industry. Tiger Brands will invest R31-million to upgrade the effluent plant at Langeberg & Ashton Foods, ensuring compliance with environmental regulations and reinforcing its commitment to responsible corporate citizenship. '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,' said CEO of Tiger Brands Tjaart Kruger. Situated in Ashton, Western Cape, Langeberg & Ashton Foods has played a vital role in the local economy since it was established in 1940. The decision to sell the business is part of a strategic plan announced by Tiger Brands in May 2020, aimed at simplifying its operations and concentrating on its core areas of business. 'It has been a long journey to find the right partner with the ability and financial capacity to ensure the continued and sustainable operation of the Langeberg & Ashton Foods business,' said Anthony Dicey, chairman of the Ashton Fruit Producers Co-operative. He said the efforts culminated in the signing of the sale of the business agreement, paving the way for the newly established NewCo, or Langeberg Foods Proprietary, to enter an exciting new era of supplying consumers with its well-known quality products. Real impact Langeberg & Ashton Foods forms part of Tiger Brands' international segment, producing canned fruit and purées for export markets (more than 80% of the business) and supplying Tiger Brands' culinary business unit with canned fruit under the KOO brand for southern African markets. As part of the deal, Tiger Brands and NewCo will enter into a contract manufacturing agreement for the purchase of canned fruit under the KOO brand. 'The conclusion of the sale marks a significant milestone in Tiger Brands' portfolio optimisation strategy and will enable management to deploy capital and drive focus on the core business that can deliver sustainable growth,' Kruger said. Tiger Brands' wider portfolio optimisation The sale also fits into a broader pattern of portfolio simplification by Tiger Brands. In November 2024, the company announced the disposal of its baby wellbeing business, comprising baby toiletries and medicinal products, to an unrelated third-party purchaser for more than R600- million. The baby wellbeing business included a range of trusted South African brands such as Elizabeth Anne's and Phipp's, while Tiger Brands retained its baby nutrition business, including the Purity brand, which remains a core part of its food manufacturing portfolio. Broader backdrop – financials and legal clouds The company recently reported a modest 1% rise in revenue and a 4% increase in headline earnings per share for the year ended September 2024. Dividends rose 4.3%, while the share price has sprinted about 30% this year, fuelled more by market sentiment than stellar operational growth. What this means for you Amid financial shifts and ongoing legal challenges, the sale of Langeberg & Ashton Foods marks a pivotal moment – not just for Tiger Brands, but for employees, communities, consumers and investors connected to the business: Employees and local communities: Job security for more than 3,000 permanent and seasonal workers is preserved and the Community Trust promises ongoing socioeconomic development initiatives, including food security, education and local infrastructure support. Consumers: Production continuity means familiar canned fruit products, including KOO brand peaches and pears, will remain available locally and internationally. Investors: The divestment allows Tiger Brands to streamline its portfolio, focusing on core growth areas, potentially enhancing operational efficiency and financial performance.
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
IOL News
13-05-2025
- Health
- IOL News
Listeriosis victims closer to ‘justice'
Some victims of the 2017/18 listeriosis outbreak have slammed Tiger Brands for excluding them from the settlement offer. Image: Simphiwe Mbokazi/Independent Media IN WHAT has been hailed as a significant breakthrough in the ongoing battle to have Tiger Brands held accountable for the listeriosis outbreak, some of the victims could soon reach a settlement with the company, marking a step closer to justice. Tiger Brands through the company's lead reinsurer, QBE Insurance Group, presented a conditional settlement offer to the plaintiffs' legal team. The offer is said to apply to certain victims of the deadly 2017/2018 listeriosis outbreak. It specifically caters to victims who were affected by the ST6 strain of Listeria monocytogenes which is the same strain that was ultimately traced back to the Enterprise Foods factory in Polokwane. In 2017/2018, South Africa recorded the largest listeriosis outbreak in history, claiming the lives of 218 people - mostly children - and affecting over 1000 with the outbreak eventually traced to Tiger Brands' Polokwane facility. "Tiger Brands confirms that the attorneys representing its lead reinsurer (QBE Insurance Group Limited) have presented a settlement offer to the plaintiffs' attorneys as part of a roadmap to a possible overall resolution of the listeriosis class action. "The lead reinsurer, having primary conduct of the defense of the class action against Tiger Brands, has with Tiger Brands' support and agreement authorised the insurers' attorneys to make settlement offers to specific named persons who are members of the following classes of claimants who suffered damage as a result of listeriosis caused by genotype L1-SL6-ST6-CT4148 of Listeria monocytogenes (ST6)," the company said. The settlement offer will cover claimants who contracted (or whose mothers contracted) listeriosis caused by ST6, claimants whose legal breadwinners, on whom they were legally dependent, died of listeriosis caused by ST6; and claimants whose legal dependents, who were in their care, and who contracted listeriosis caused by ST6. In a statement, Tjaart Kruger, Chief Executive Officer, Tiger Brands stated: 'Today's announcement represents an important milestone and follows shortly on measures already taken in February 2025 to offer interim relief in the form of advance payments to identified claimants with urgent medical needs. It also demonstrates our commitment to continue to work closely with our insurers and their appointed attorneys to explore a resolution of the entire class action.' Reacting to this commitment by the food company, Nilesthra Padayachee who represents one of the two law firms that undertook class action against Tiger Brands, indicated that the settlement is a first step towards taking responsibility for the outbreak. "This commitment demonstrates the first step towards Tiger Brands taking responsibility for the devastating harm caused by the outbreak. It is a significant breakthrough as it is the first offer of settlement received since the class action was certified. This comes after their own experts have had an opportunity to review data provided by the NICD, which has conclusively traced the outbreak to the Tiger Brands Polokwane facility. "Tiger Brands is finally taking accountability by agreeing to compensate certain victims. The offer reflects a positive movement towards corporate responsibility and justice for all victims. We remain hopeful about the possibility of a structured and fair settlement agreement that encompasses all class members," said Padayachee. While the lawyers who represented more than 200 claimants of the 2017/18 listeriosis outbreak have welcomed the recent commitment, some victims have slammed the company for excluding them from the settlement offer. Candice Dupreez and Shereen Louw, the parents of two children who contracted listeria, have slammed Tiger Brands saying their children, who now have to contend with a series of long-term side effects, have not been compensated for the 2017/18 trauma. 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 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. Next Stay Close ✕ "Tiger Brands have not taken any responsibility for the pain and trauma they have caused us and our children. We are not part of the settlement even though we also took part in the class action against them. "We as the parents and party to the class action have tried to communicate with the lawyers but were told that this offer is for certain people while our children continue to suffer severe back pains and other health complications due to the outbreak," said Dupreez. The Department of Health welcomed Tiger Brands' decision to settle the listeriosis class action, calling it a crucial step towards closure for the affected families while it also urged families who lost loved ones to come forward if they have medical records that may support a valid claim. Health spokesperson Foster Mohale said that intersectoral coordination on food safety remains critical to prevent future outbreaks. "The outbreak highlighted the importance of consistent and strict adherence with food safety practices in the processing and handling of ready-to-eat foods, especially for mass supply. Food safety and hygiene practices remain crucial for public health, preventing foodborne illnesses, reducing food waste and avoiding costly food recalls." Cape Times
