Sovereign Foods, the third largest poultry producer in South Africa, has announced its merger with the Cold Storage Group (CSG), an Eastern Cape wholesaler of poultry and value-added poultry products.

CSG comprises five inter-related wholesalers which include Umtata Cold Storage, Kei Cold Storage in Queenstown, Zwelitsha Cold Storage, Wilsonia Cold Storage in East London and Sov Foods Factory Shop in Uitenhage. 

Sovereign Foods chief executive Chris Coombes said on Friday that Sovereign would take a majority ownership stake in CSG and consolidate the five businesses into one business. 

“CSG has built up a loyal and valuable customer base in these areas and has an experienced management team that has driven strong growth in the business over the past five years,” Coombes said. The companies in CSG distribute, sell and supply poultry and value-added poultry products on a wholesale basis to retailers and walk-in customers in the Eastern Cape. CSG has 25 delivery vehicles and employs 110 people. The merger was approved by the Competition Commission on February 19.