Tiger Brands has agreed to the disposal of its iconic Beacon Easter eggs and chocolate slabs businesses, as well as the Beacon brand itself, as it continues a more than 24-month long process under CEO Tjaart Kruger to trim its portfolio.<\/p>\n
It would not disclose the buyer, but has booked an impairment of R92 million on the sale.<\/p>\n
Read: Tiger Brands sells its iconic head office<\/p>\n
It is also separately selling the Durban factory where these products are currently being made, and expects to recognise a profit on that disposal which will offset the impairment.<\/p>\n
Ongoing portfolio shake-up<\/strong><\/p>\n Beacon is a 95-year-old brand and Tiger acquired a 50% stake in 1990 before buying it outright in 1998. Out of this grew Maynards, mmmMallows, Liquorice Allsorts and Sparkles \u2013 all of which have arguably become bigger brands than Beacon itself.<\/p>\n While likely not loss-making, the investment required to get the slabs production facilities up to scratch is now just too costly to justify.<\/p>\n<\/blockquote>\n Kruger admitted last year that the business had not upgraded its chocolate manufacturing equipment in over 30 years. This has seen it trail market leaders Cadbury (Mondel?z) and Nestl\u00e9 by a long way.<\/p>\n The Easter egg (and associated product) business is completely seasonal, which explains Tiger Brands\u2019s decision.<\/p>\n The group will retain the TV Bar, Nosh, Wonder Bar and Jungle energy bar, as well as the chocolate variants of Black Cat and Jelly Tots. \u201cIn addition to being profitable\u201d, it says, these are \u201ca strategic enabler\u201d of its \u201csnackification\u201d growth platform.<\/p>\n ADVERTISEMENT<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n CFO Thushen Govender says \u201cJungle Bar is now in the top three countlines in the country\u201d.<\/p>\n \u201cIt\u2019s performing exceptionally well, and that\u2019s also helping the profit mix.\u201d<\/p>\n Durban consolidation adds complexity<\/strong><\/p>\n Along with the disposal, the group is consolidating its three manufacturing sites in its snacks, treats and beverages division in Durban into one.<\/p>\n This is an enormously complicated project, as its busy doing this while disposing of a part of the business and still manufacturing its jellies, candy and mallows.<\/p>\n This unit accounted for 18% of its revenue in the first half \u2013 almost the same as its grains business (trading in a period of deflation) \u2013 but at a better margin and profit (R505 million versus R441 million).<\/p>\n Kruger\u2019s strategy has been disarmingly simple: rationalise units and products that don\u2019t move the needle and focus on its mega brands.<\/p>\n<\/blockquote>\n In the past two-plus years, it has disposed of its baby wellbeing division, non-core personal care brands (Bio Classic, Bio Crystal, Kair, Black Silk, Fiesta and Eulactol), its Randfontein maize and wheat milling unit, the Langeberg & Ashton Foods (canned fruit) operation, as well as Chilean associate Carozzi and Chococam.<\/p>\n Read:<\/p>\n In the last six months, it has also sold the niche Game and Monis (grape juice) brands, on which it booked a profit of R6 million.<\/p>\n Simplifying the organisation<\/strong><\/p>\n Kruger says the current leadership team has been focused on simplifying the organisation, and the \u201cbig challenge now is to make sure we don\u2019t lose control the other way again\u201d (in other words, avoiding the mistakes made over the past two decades).<\/p>\n ADVERTISEMENT:<\/p>\n CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n \u201cWe are there and we must make sure that we focus on this organisation as a simplified business where we focus on big things and not fiddle around with stuff that doesn\u2019t make a difference.\u201d<\/p>\n Following its disposals, it has 15 major (mega) brands left, including Albany, Tastic, Koo, All Gold and Oros. Of these, 11 are ranked first in their category in terms of brand equity, with one (Crosse & Blackwell) in second place.<\/p>\n The mayonnaise brand is already back in first place in terms of market share, and Kruger says it will be a matter of time before it attains first place in term of equity. All but three are the largest in terms of volume.<\/p>\n Listen\/read: Tiger Brands \u2018getting better and better\u2019<\/p>\n He reiterates a comment he made previously about its brands actually belonging to the consumer. \u201cIt\u2019s not ours, it\u2019s just our job to make sure they are relevant to the consumer.\u201d<\/p>\n CEO Tjaart Kruger is eyeing \u2018a simplified business where we focus on big things\u2019. Image: Supplied<\/p>\n<\/div>\n A unit previously up for sale \u2013 King Foods, which manufactures sorghum-based products in Potchefstroom \u2013 has since been turned around and is no longer on the block.<\/p>\n The group says offers received for the business did not meet its \u201cvalue realisation hurdles\u201d.<\/p>\n Tiger Brands share price<\/strong><\/p>\n<\/p><\/div>\n #Chocolate #wars #Tiger #Brands #sells #Easter #eggs #slabs #Beacon<\/p>\n","protected":false},"excerpt":{"rendered":" Tiger Brands has agreed to the disposal of its iconic Beacon Easter eggs and chocolate slabs businesses, as well as the Beacon brand itself, as it continues a more than… <\/p>\n","protected":false},"author":1,"featured_media":5237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[7702,695,5636,7699,7700,136,7701,5719,1189],"class_list":["post-5236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-beacon","tag-brands","tag-chocolate","tag-easter","tag-eggs","tag-sells","tag-slabs","tag-tiger","tag-wars"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/5236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5236"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/5236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/5237"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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Tiger Brands confirms plan to sell loss-making fruit canning plant<\/div>\n![\"\"](\"https:\/\/www.moneyweb.co.za\/wp-content\/uploads\/2026\/06\/Tjaart-Kruger-Tiger-image-555x370.jpg\")
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