Tiger Brands sells Langeberg and Ashton Foods, paving way for new ownership, community upliftment

SOUTH AFRICA – After five years of strategic deliberation, Tiger Brands has announced the sale of its deciduous fruit business, Langeberg and Ashton Foods, to a newly formed consortium for a nominal sum of R1 (US$0.06). 

The sale marks a significant milestone in the company’s efforts to streamline operations and refocus on its core domestic market and product lines.

The buyer, Langeberg Foods Proprietary Limited (NewCo), is a newly established entity comprising The Ashton Fruit Producers Co-operative—representing fruit growers from Robertson, Ceres, Breederivier, and the Klein Karoo—and an undisclosed development finance institution committed to job creation, improved livelihoods, and supporting the transition to net-zero.

This transaction will enable NewCo to operate Langeberg and Ashton Foods as a going concern while continuing to supply Tiger Brands with canned fruit under its well-known KOO brand, through a contract manufacturing agreement. 

Over 80% of the company’s output, which includes canned peaches, pears, apricots, apples, guavas, and fruit purées—is currently exported to international markets such as Europe, China, Japan, and Australia.

R1 deal with far-reaching implications

Tiger Brands will also invest R150 million (US$8.3 million) in establishing a Community Trust, which will hold a 10% stake in NewCo and be tasked with implementing socio-economic development initiatives in the local Langeberg area. 

The company has pledged an additional R31 million (US$1.7 million) to upgrade the facility’s effluent plant to ensure compliance with environmental regulations.

“This sale reflects our ongoing commitment to a responsible and sustainable exit strategy that places the long-term wellbeing of employees, suppliers, and the broader Langeberg community at the forefront,” said Tjaart Kruger, CEO of Tiger Brands. 

“The factory has been a central pillar of this community for decades. We are proud to hand over operations to a consortium that understands its value and will ensure its sustainability.”

Founded in 1940, Langeberg and Ashton Foods is based in Ashton, Western Cape, and provides over 3,000 permanent and seasonal jobs. It also sources fruit from 250 local GAP-accredited producers, forming a key link in South Africa’s deciduous fruit value chain.

The sale follows a turbulent financial performance. The Deciduous Fruit division recorded an operating loss of R78 million (US$4.3 million) in 2020, followed by a R147 million (US$8.1 million) loss in 2021, largely attributed to global shipping challenges, the impact of COVID-19, and the strength of the Rand. 

Although the business experienced a 32% revenue boost in 2022 due to higher international fruit prices, the 2024 financial results showed a double-digit decline in operating income, reinforcing the need for divestiture.

“The success of this sale will ensure the sustainability of the South African deciduous fruit industry and improve the livelihoods of the Langeberg and Ashton Foods employees and the broader communities,” added Kruger.

Anthony Dicey, Chairman of The Ashton Fruit Producers Co-operative, echoed these sentiments.

“Over time, a fruit canning factory such as Langeberg and Ashton Foods becomes deeply embedded in the local farming ecosystem. Finding the right partner with the financial capacity and long-term vision has been a complex journey. Today marks a new era for this iconic operation.”

In addition to its manufacturing role, Tiger Brands, through Langeberg and Ashton Foods, has long supported the region with food hampers, soup kitchen supplies, and school nutrition programmes. 

Initiatives like the Eduplant school greening programme and the Tiger Brands Foundation in-school breakfast programme have strengthened food security and supported local educational institutions.

The sale is subject to regulatory approval, including clearance from the relevant competition authorities. It is expected to be finalized in the second half of 2025.