Johannesburg – The Tiger brand has signed a business agreement to promote its exit from Ashton Foods with Langeberg, a deciduous canned fruit business.
Five years after the Tiger brand announced its intended exit, the sale will remain in the newly formed company (NewCo), founded by a competent and committed consortium consisting of parties with sustainability in Langeberg and Ashton Foods and the sustainability of cooperatives of fruit growers in the Ashton region (which brings insights and experts in the agriculture sector).
Based in Ashton, Western Cape, the iconic business offers employment to more than 3,000 permanent and seasonal employees and is a key contributor to the region's economy.
Langeberg and Ashton food sales follow the strategic decision taken by the Tiger brand in May 2020, and will withdraw the business and better adjust the group's stated vision and portfolio.
The consortium consists of a cooperative of fruit producers in Ashton and a development financial institution that will help create jobs, improve livelihoods and move to net zero.
Founded in 2020, the Ashton Fruits Producer Cooperative is made up of member producers from the Robertson, Ceres, Brie Trivier and Kleinkaru area.
The Tiger brand will sell Rangieberg and Ashton Foods business as Newco's concern for full cash review of R1 (1 Rand).
As part of the sale, the Tiger brand is committed to R150 million to establishing a community trust that benefits the broader Rangiberg community through its socioeconomic development initiative.
The Community Trust will ultimately hold beneficial profits equivalent to a 10% stake in NewCo, and the consortium will maintain a balance of fairness.
Tiger Brands CEO Tjaart Kruger said on Friday (May 16, 2025).
Langeberg and Ashton Foods are iconic businesses founded in 1940 and are important to the economic throbbing of the Langeberg region of the Western Cape.
“Today's announcement certifies the company's commitment to ensuring results that are in the best interests of all stakeholders,” Kruger said.
“The success of this sales ensures the sustainability of South Africa's deciduous fruit industry, which will improve the livelihoods of Langeberg and Ashton Foods employees and the broader communities in these areas.”
Kruger said the Tiger brand has been part of the Langeberg area and its community for decades.
“The establishment of a community trust is a notable milestone for the region as the Tiger brand continues to be committed to sharing social and economic benefits to the Langeberg community, ever since we left,” Kruger said.
“This contribution is consistent with our purpose to nurture and nurture more lives each day.”
Anthony Dessey, chairman of the Ashton Fruits Producers Co-op, said:
“It has been a long journey to find the right partner with the ability and financial capabilities to ensure the continued and sustainable operation of the Langeberg and Ashton Foods business.
“All of these efforts have culminated in the signing of business contract sales, paving the way for the newly established Newco or Langeberg Foods Proprietary, entering an exciting new era of supplying consumers with well-known high-quality products.”
Langeberg and Ashton Foods are part of the international segment of the Tiger brand.
It produces canned fruits and purees for the export market (over 80% of the business), and supplies Tiger-branded culinary business units with canned fruits under the Koo brand, sold in the South African market.
As part of the sale, Tiger Brands and Newco will enter into a contract manufacturing agreement to purchase canned fruits under the Koo brand.
In line with the value of being a responsible corporate citizen, the Tiger brand also ensures that it completes its drainage plant upgrade with an additional investment of R31 million and continues to comply with environmental regulations.
“The sales conclusions mark a key milestone in Tiger Brands' portfolio optimization strategy, allowing management to focus on core businesses that can deploy capital and bring about sustainable growth,” Kruger said.
The sale of a business agreement is subject to suspensions customary to transactions of this nature, including but not limited to obtaining the necessary approvals from the relevant competition authorities.
Sales are expected to be completed later this year.
