17 Oct 2025 Fresh start for Cape canning giant

Langeberg Foods, the iconic canned fruit producer based in Ashton, Western Cape, is on a transformative journey after Tiger Brands officially exited the business.…

As of 1 October 2025, operations at the Ashton fruit factory have been taken over by Langeberg Foods, a newly formed entity backed by a consortium of stakeholders deeply rooted in the region’s agricultural economy.

This marks the end of a five-year search by Tiger Brands for a buyer aligned with the long-term sustainability of the Langeberg & Ashton Foods (LAF) operation. The new ownership structure includes:

• Norfund, the Norwegian development finance institution.
• Ashton Fruit Producers Co-operative, representing local growers.
• Langeberg Community Trust, established with funding support of R150 million from Tiger Brands, will hold a 10% stake, ensuring that dividends and benefits flow directly back into the Ashton community to support socio-economic development in the broader Langeberg region.

Why Tiger Brands stepped away

Tiger Brands’ decision to divest from its deciduous canned fruit business stemmed from strategic realignment and challenges in the global canned fruit market. The sale was finalised for a symbolic R1, underscoring the priority placed on preserving jobs and ensuring continuity rather than profit.

Tiger Brands CEO Tjaart Kruger describes the transaction as the culmination of a long journey to find the right custodians for the business. The move safeguards over 3,000 jobs, a critical win for the local economy and the livelihoods of workers in the Ashton area.

Local roots, global vision

The new owners bring a blend of local expertise and international development support. Norfund’s involvement signals a commitment to sustainable development and impact investment, while the Ashton Fruit Producers Co-operative ensures that decisions are made by those who understand the land, the crops, and the community.

The Langeberg Community Trust’s stake is particularly noteworthy — it embeds social equity into the business model, giving local residents a voice and a share in future success.

What’s next for Langeberg Foods?

Under new leadership, Langeberg Foods is expected to:

• Revitalise its tomato purée and canned fruit lines, with a focus on quality and export potential.
• Invest in modernising operations, improving efficiency and sustainability.
• Strengthen relationships with growers, ensuring fair pricing and long-term supply stability.
• Explore new markets, leveraging Norfund’s global network.

Source: MoneyWeb.co.za

A pertinent comment on this MoneyWeb article: The new owners think their business is about canning and squeezing fruit for juice, but there are far larger forces at play that will squeeze them until their eyes water.

The factory was successful and profitable when it still enjoyed the competitive advantage of capitalist economics. The business model relied on cheap labour, affordable municipal services, reliable and cheap electricity, and access to capital at competitive rates.

The ANC destroyed cheap labour with labour laws, and destroyed affordable municipal services with a legal monopoly on service delivery, cadre deployment and EE. They destroyed affordable electricity with incompetence, corruption, and hidden agendas at Eskom. They destroyed access to affordable credit with redistributive policies that drive interest rates to be three times what the international competition pays.

The ANC has turned Langeberg Foods into a factory that consumes capital, destroys value, and squeezes the last liquidity out of investors.

This is a value trap that motivates captured roleplayers, refusing to cut their losses, to throw good money after bad.