Skip to main content

Famous Brands spots gap, buys ‘practically unused’ tomato paste factory

| Supplier news

Famous Brands has bought a bankrupt tomato paste factory in the Coega precinct. The factory is state-of-the-art and practically unused, Famous Brands said in its announcement. It cost R200m to build in 2010. The company did not say how much it had paid.

This acquisition follows a purchase of a chips factory, Lamberts Bay Foods, on May 26 in the group’s drive to secure its supply chain by owning makers of key ingredients.

Between 30,000 and 35,000 tonnes of tomato paste was imported into SA every year because of a lack of local manufacturing capacity, Kevin Hedderwick, the group’s strategic adviser responsible for mergers and acquisitions, said in the statement.

The group intends supporting local farmers by modelling its latest acquisition on Coega Cheese Company, which became a "very successful empowerment venture" called Famous Brands Fine Cheese Company (FBFCC).

"In 2013 we established FBFCC as a green-field venture, in which we co-opted local farmers to supply milk for the production of mozzarella, cheese slices and cream cheese for the group," Hedderwick said.

"When the dairy was initially commissioned in May 2013, our milk intake volumes were in the order of 16.5-million litres per annum.

"That volume has grown to 38-million litres of milk per annum. This joint venture has been a spectacular success for all of the partners in the business."

According to Famous Brands, the new partnership will provide much-needed employment in an economically distressed area. About 35 jobs will be created in the plant itself. It will also deliver substantial financial benefit for the farmers, who will gain an instant, robust market for their produce and the potential to develop that market over time.

Pin It

Related Articles

Veggie victory as Joburg High Court sets aside ...

By: Sarene Kloren - IOL Lifestyle A new ruling by the South Gauteng High Court in Joburg has overturned an interim interdict to forestall and prevent the seizure of plant-based meat alternatives from South African retail shelves.

Benylin Paediatric Syrup recalled, investigatio...

By: Given Majola – IOL Business Report The SA Health Products Regulatory Authority (Sahpra) together with the South African manufacturer of Benylin Paediatric Syrup – Kenvue (formerly Johnson & Johnson) – have recalled two batches of the coug...

Tiger Brands invests in a multi-million-rand Pe...

Black Cat, South Africa’s most loved peanut butter brand, has a new home following a R300-million capital investment by Tiger Brands. The new peanut butter manufacturing facility is in Chamdor, Krugersdorp, on Johannesburg’s West Rand.

Eskom price hikes are here — How much more cust...

By: Hanno Labuschagne - MyBroadband Eskom’s latest tariff hikes will see many direct residential customers paying between R168 and R792 more per month on their electricity bills.

Take heed of these new retail trends that emerg...

By Karen Keylock | National Retail Services Manager at Nedbank Commercial Banking South African consumers are under financial strain and, consequently, the way they shop has changed. And with further economic uncertainty expected in the coming ye...