Following the disposal of Tiger Brands' Langeberg & Ashton Foods business to a consortium of local fruit producers for US$0.05 in May, operations restarted on October 1. The move secures continued activity for the deciduous fruit industry in the Western Cape.
Tiger Brands first announced its intention to exit the deciduous fruit business in May 2020 as part of a portfolio restructuring plan. A succession plan was put in place, alongside a US$8 million community trust aimed at socioeconomic development initiatives for residents in the broader Langeberg area.
The community trust holds a 10% shareholding in the new company operating Langeberg & Ashton Foods. Other shareholders include the Norwegian development finance institution Norfund and 100 fruit producers from across the Western Cape, represented by the Ashton Fruit Producers Agricultural Cooperative.
The Ashton factory remains part of the Breede River Valley economy, employing more than 3,000 seasonal and permanent workers. The facility produces canned fruit and puree products for export to Europe, China, Australia, and Japan, with some supply to the domestic market.
"The successful conclusion of this transaction marks the end of a five-year journey to find a viable buyer and secure a sustainable future for Langeberg & Ashton Foods. The new owners of the business bring considerable agricultural sector expertise along with a vested interest in the sustainability of this iconic business, which has employed generations of people from the region," says Tiger Brands CEO Tjaart Kruger.
He adds that the Langeberg community trust will ensure the company continues to support local communities after Tiger Brands' exit.
Langeberg & Ashton Foods CEO Edwin Kriel states: "Ashton is more than just a factory; it is the heartbeat of a community and this reopening is about creating jobs, uplifting people and building a stronger, more sustainable future."
With the handover completed, fruit producers in Robertson, Ceres, Breederivier, and Klein Karoo will benefit from stability in the industry and opportunities for new orchard plantings.
The facility will continue supplying products for Tiger Brands' KOO brand under a contract manufacturing agreement.
Source: Engineering News