Fruit farmers and communities in Ashton, Western Cape, are breathing a sigh of relief after food giant Tiger Brands confirmed the sale of its Langeberg and Ashton Foods canning factory for just R1. The buyer, NewCo, is a newly formed company made up of local producers and stakeholders determined to save the region’s key agricultural employer.
The sale follows years of uncertainty after Tiger Brands announced in 2020 that it would exit the deciduous canned fruit business. The canning plant, established in 1940, processes peaches, pears, apricots, apples, and guavas and employs over 3,000 people—making it a vital part of the local economy.
Saving Jobs and Orchards
NewCo includes members of the Ashton Fruit Producers’ Co-operative, formed in 2020, representing around 140 fruit growers from Robertson, Ceres, Breede River, and Klein Karoo. Co-op chair Anthony Dicey said the announcement brings “new hope” to the region, adding that the factory’s closure would have been “devastating.”
While the symbolic purchase price was just R1, NewCo will need to raise between R800 million and R1 billion over the next year for operational expenses and investment. Farmers, encouraged by the factory’s future, are expected to resume planting orchards dedicated to canning cultivars after years of holding back due to uncertainty.
Boosting Local Agriculture and Exports
Jacques Jordaan, CEO of the Canned Fruit Producers’ Association, called the sale a major win for agriculture in the Western Cape. He noted that while South Africa is globally recognized for premium canned fruit, recent instability had cost the industry market share. He emphasized the urgency of getting operations running quickly, with the season starting in May/June.
Transition and Community Benefits
Tiger Brands will manage the plant during the handover, while NewCo sets up its leadership team. To support the community, Tiger Brands has pledged R150 million to establish a community trust, which will own a 10% stake in NewCo. The remaining 90% will be held by the producer consortium.
Tiger Brands CEO Tjaart Kruger said the deal reflects the company’s commitment to securing a sustainable future for the deciduous fruit industry. The factory also supplies canned fruit to Tiger Brands’ well-known brands like KOO, All Gold, Hugo, and Purity, and exports more than 80% of its products to international markets, including Europe, China, Australia, and Japan.