South Africa’s Tiger Brands recently invested R300m ($15.8m) in a new peanut-butter manufacturing facility in Johannesburg to enhance production efficiency. The company has introduced this plant to cater to the growing consumer demand for affordable yet nutritious food options in the South African market. The investment includes packaging line upgrades to facilitate quicker innovations and new product offerings.
Tjaart Kruger, the CEO of Tiger Brands, emphasized the significance of this new facility in meeting consumer needs. He stated, “Consumers are seeking affordable and healthier food options, and peanut butter is a staple in the South African diet. We anticipate strong growth in this category, and the new facility will provide flexibility, improved efficiencies, and cost reduction, allowing us to maintain our market position.”
The South African peanut-butter category accounts for half of the total South African spreads market, excluding margarine, which is valued at R3.4bn. Black Cat peanut butter, a leading brand in this market, sells five million kilogrammes per year in retail stores. Dumo Mfini, culinary managing director at Tiger Brands, expressed pride in the brand’s success and the company’s ability to meet consumer demands for affordability, nutritional value, and quality.
In February, Tiger Brands restructured its organizational framework into six business units to enhance profitability. The new structure focuses on bakeries, grains, culinary, treats and beverages, home and personal care, snacks, and baby food divisions. This realignment aims to streamline operations and improve overall performance in the highly competitive food and beverage industry.