- Tiger Brands, one of South Africa’s largest fast-moving consumer goods companies, has confirmed its intention to sell the Langeberg and Ashton Foods (L&AF) deciduous fruit factory in the Western Cape, which has been a loss-making operation for several years.
- The company had previously attempted to sell the factory in 2020, but the process was put on hold due to the pandemic.
- Tiger Brands has now resumed the sale process, and at least one buyer is currently assessing the plant.
- The L&AF factory produces canned fruit and fruit puree, but has struggled to compete with imports and to manage its cost base, leading to significant losses in recent years.
- Tiger Brands has been implementing a broader restructuring program to improve its financial performance, which has included the sale of non-core assets and the closure of underperforming operations.
- The company’s management remains committed to its long-term strategy of focusing on core brands and businesses, and sees the sale of the L&AF factory as a necessary step to achieve this goal.
- However, the sale process is likely to be challenging, given the factory’s financial performance and the difficult market conditions in the fruit canning industry.
