More than 3,000 jobs saved in Tiger Brands’ canning business exit

Tiger Brands has announced that Langeberg Foods will resume operations at the Ashton fruit canning factory on October 1, marking the end of a five-year struggle to secure the future of the country’s largest deciduous fruit processor.

The deal saves more than 3,000 permanent and seasonal jobs and ensures stability for a key export industry.

The factory, previously owned by Tiger Brands, has been taken over by a consortium led by the Ashton Fruit Producers Agricultural Co-operative, supported by Norwegian development finance institution Norfund.

A 10% stake has also been allocated to the newly established Langeberg Community Trust, funded with R150m from Tiger Brands, which will channel dividends back into socioeconomic projects in the region, the food producer said in a statement on Tuesday.

The facility is a cornerstone of the Breede River Valley economy and one of SA’s most significant food exporters, with more than 80% of its canned fruit and puree shipped abroad. Its future had been in doubt since Tiger Brands announced plans to exit the deciduous fruit business in 2020.

Tiger Brands said the trust underpinned its commitment to distributing social and economic benefits to the community of Langeberg long after the company’s exit.

“As part of the transaction, Tiger Brands also commits to completing an effluent-treatment plant upgrade with a further investment of R31m.”

The Competition Commission approved the sale earlier this year, concluding that it would not reduce competition. As part of the agreement, no retrenchments will take place for at least three years, and the new owners have committed to fresh capital investment.

“With the sale completed, the producers are looking forward to stability in the industry and the prospects of planting new orchards and sustainable growth to the benefit of all in the value chain,” said Ashton Fruit Producers agricultural co-operative chair Anthony Dicey. 

goban@businesslive.co.za