From left: Roger Schierhout, Plant Manager Paarl Culinary, (far left); Dumo Mfini, MD Culinary Tiger Brands; with Premier of the Western Cape, Alan Winde, and Tjaart Kruger, CEO Tiger Brands (middle); and Werna Oberholzer, Chief Corporate Affairs and Sustainability Officer, Tiger Brands
Image: Supplied
Tiger Brands on Monday unveiled a R200 million investment in its Paarl facility, turning the site that has been in operation since 1903 into a state-of-the-art culinary mega-site with three dedicated production plants.
The investment is the first of the company’s structural investments to go live, as part of its strategy to drive growth through improving competitiveness. Tiger Brands is investing about R1.5 billion annually in capital expenditure for the next three years, with peak investment reaching R2bn.
A Tiger Brands super bakery in Pretoria, a R1bn investment, is on track for commission in 2027, and a Mega Distribution Centre in Gauteng is expected to be operational the following year.
At its Snacks and Treats operation in eThekwini, Durban, production is being consolidated into a single mega-site, with the project expected to be completed later this year. The consolidation aims to streamline operations and improve manufacturing efficiencies across the business.
The company has also completed its first major upgrade in the 33-year history of its Pietermaritzburg Mill. The investment will improve manufacturing efficiencies, increase flour extractions, and reduce waste.
The Boksburg Culinary manufacturing facility, where iconic brands such as KOO, All Gold, and Cross & Blackwell are produced, has been expanded to include a new Culinary Hub, bringing commercial and operational teams closer together to enhance collaboration and accelerate innovation.
The localisation at Paarl carries significant benefits for consumers and the economy. Raw materials are sourced from qualified suppliers, supporting South African agriculture and contributing to local economic activity in the area.
The Western Cape also benefits from the facility’s economic contributions as a major employer and manufacturer.
“Paarl has been at the heart of South Africa’s food manufacturing for more than 120 years. The legacy continues with this investment. We are proud to be growing our presence here and to be supporting the local economy,” said CEO Tjaart Kruger at the opening of the plant on Monday.
“The resilience of its performance through the first part of the year, combined with the structural investments now coming on stream, positions the company well for the future. The Paarl mega-site is a tangible expression of that ambition,” he said.
For the Paarl Culinary facility, Tiger Brands sources key agricultural commodities from across the province, such as strawberries from Paarl and Stellenbosch for All Gold and Hugo’s Strawberry Jam, onions from Villiersdorp and Grabouw for Mrs Ball’s Sweet Chilli Sauce, and Seville oranges from Ceres for KOO Seville Jam, produced primarily for export markets.
Included in the R200m investment is a dedicated vinegar production plant with a production capacity of three million litres per annum. Vinegar is a critical input for several key products, including Mrs Ball’s Chutney, All Gold Tomato Sauce, and Cross & Blackwell Mayonnaise.
The second major development was a Mrs Ball’s Chutney production at the Paarl facility, with three production lines. Previously produced by a third party, bringing the iconic brand under one roof for the first time strengthened quality assurance and supply security of one of the country’s best-loved brands.
The third development is the transition of jam packaging from cans to recyclable PET containers, a change that brings significant benefits to the majority of consumers, who now no longer need to put the jam into an extra container upon purchase.
“By bringing Mrs Ball’s in-house, by securing our vinegar supply, and by improving our packaging, we are focused on driving growth and better meeting consumer needs with convenient packaging solutions,” said Dumo Mfini, managing director for culinary business at Tiger Brands.
BUSINESS REPORT