Skip to main content

Pick n Pay to beef up meat offering with the R340m acquisition of Wellington's Tomis

| Supplier news

News24 - Karl Gernetzky

Pick n Pay said on Wednesday it had reached an agreement to buy Western Cape-based meat group Tomis for R340 million, a move aimed at ensuring a higher-quality and more consistent red meat offering for customers.

Established in 1993, Tomis is a state-of-the-art abattoir and meat processing and packaging business, supplying lamb, beef and other quality fresh meat products to wholesalers and retailers, including Pick n Pay, the retailer said in a statement.

Tomis’ production facilities are situated near Wellington, approximately 100km from Cape Town. The key assets include a 15 000m2 under-roof lamb feedlot, lamb and beef abattoirs, and a meat packaging plant situated on a 140-hectare farm. It has 320 employees, and recorded sales of R720 million in its 2022 financial year, the group said. Pick n Pay, valued at about R18.5 billion on the JSE and generates about R100 billion in annual turnover.

Tomis "operates under the highest animal welfare, food hygiene, ethical, and environmental standards," the group added on Wednesday.

The transaction is still subject to regulatory approvals.

Pick n Pay said, however, that the acquisition would "significantly enhance" the group's fresh meat offer, it said, including its ability to develop and roll out value-added products.

It will also result in a reduced cost for meat, providing the ability to give customers greater value, while also offering reliable supply, and synergies with the group's centralised supply chain distribution network.

Meat is a key product for both Pick n Pay and Pick n Pay QualiSave under the new Ekuseni strategy, the group said. This strategy has divided the group's offering into three distinct value propositions, Pick n Pay, Pick n Pay QualiSave and Boxer, which respectively target from the upper end of the market to the lower.

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...