Tiger Brands, South Africa’s largest food business, has again extended the operations of its up-for-sale deciduous fruit canning business Langeberg & Ashton Foods (L&AF) for a further season.
In an announcement made via the Johannesburg Stock exchange (JSE), on which it is listed, and accompanying the release of its interim 2023 results, Tiger Brands said operations at Langeberg & Ashton Foods would be extended for the 2023/2024 season and that a due diligence exercise is currently underway as part of the sale process first commenced in 2020.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It is the second year running it has extended the operation after failing to secure a buyer for the business, a situation that has led to fears that the business could be closed.
In its statement, the Jungle Oats, Albany bakery and Cresta rice brands owner said the business will continue in its current form for the forthcoming season as it “continues to assess all options to enable the continued operation of the Langeberg & Ashton Foods business in a sustainable manner in the interest of all stakeholders”.
It added: “The 2023/2024 season continuation is conditional on all stakeholders – suppliers, growers and our workforce – working together as per the past season to reach agreement on commercial terms to ensure a viable business for the forthcoming season.
“We will be engaging with all stakeholders to conclude these negotiations prior to 30 June 2023 to ensure that the company is mandated by the Tiger Brands board to order the tinplate for the new season.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLocal media outlets reported that Tiger Brands’ decision was taken after a “compact” was agreed upon with organised labour, L&AF employees and members of the Canning Fruit Producers Association that allows the company to undertake the “significant risk” required to operate the business for the forthcoming season.
There are reports of interested parties looking at taking over the business but any successful negotiation would not be concluded in time to put the required preparations in place to process the upcoming 2023/24 season’s crop.
Based in the Western Cape, the Langeberg & Ashton Foods division produces canned fruit – peaches, pears, apricots, apples and guavas – and fruit purees, largely for the export market.
It also supplies Tiger Brands’ culinary division, which produces fruit-laden products including jam, baked beans and baby food.
Tiger Brands decided to divest the deciduous division in May 2020 after a strategic review.
