The agreement of sale included a provision that there would be no retrenchments for at least three years.
Tiger Brands has successfully sold its canned food business, Langeberg and Ashton Foods, following a five-year search for the right buyer. This transaction has saved more than 3Â 000 seasonal and permanent jobs.
It was announced on Tuesday that Langeberg Foods will commence operations at its Ashton-based operations on 1 October 2025.
The factory was previously owned by Tiger Brands and has since been acquired by a consortium led by the Ashton Fruit Producers Agricultural Co-operative, with support from the Norwegian development finance institution Norfund.
ALSO READ: Tiger Brands confirms plan to sell loss-making fruit canning plant
Tiger Brands R150 million trust
Tiger Brands said the Langeberg Community Trust, established with funding support of R150 million from the food producer, will hold a 10% stake.
The dividends and benefits from the 10% stake will be used to support socio-economic development in the broader Langeberg region.
“This is a unique opportunity to secure jobs and local ownership in a business that is vital to the community and with big growth potential,” said Pindie Nyandoro, Norfund’s regional director for Southern Africa.
Ashton Foods factory
The food producer said the factory is the cornerstone of the Breede River Valley economy. “With more than 80% of its canned fruit and puree products exported, the factory is both a critical export earner and a vital employer in the region,” added Tiger Brands.
ALSO READ: Tiger Brands recalls its Benny beef and chicken-flavoured stock cubes
“The new owners of the business bring considerable agricultural sector expertise and insights along with a vested interest in the sustainability of this iconic business, which has employed generations of people from the region,” said Tjaart Kruger, CEO, Tiger Brands.
“Tiger Brands has been part of the Langeberg region and its communities for many decades. The Langeberg Community Trust will ensure the company continues to play an active role to support and uplift local communities, long after our exit.”Â
No retrenchments
The sale of the food producer’s canned food business was approved by the Competition Commission earlier this year, citing that the deal would not reduce competition.
The agreement of sale included a provision that there would be no retrenchments for at least three years.
“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,” said Edwin Kriel, CEO of Langeberg Foods.
NOW READ: Tiger Brands to make interim advance payments to listeriosis victims as class action continues