BUSINESS STRATEGY

Tiger brands invests in new manufacturing facility for peanut butter

By our African Marketing Confederation News Team | 2024

Opening of new factory near Johannesburg reflects expectations of strong growth in the South African peanut butter category.

Tiger Brands, the South African-based FMCG giant, has opened a new US$15,9-million (R300-million) manufacturing facility to produce its well-known Black Cat peanut butter brand.

The plant is located in the Chamdor industrial area of Krugersdorp, about 35km west of Johannesburg.

Deputy Minister Nomalungelo Gina (centre) with Tiger Brands executives Tjaart Kruger (left) and Dumo Mfini.

Photo: Tiger Brands

It was officially opened during a celebratory event attended by Tiger Brands CEO, Tjaart Kruger, and the country’s Deputy Minister in the Department of Trade, Industry and Competition (DTIC): Economic Development, Nomalungelo Gina.

According to a statement released by the company, this is one of the largest investments of capital that it has made in a single project, signalling the opportunity the peanut butter category presents for sustainable returns.

“Consumers are looking for affordable and healthier food options. Peanut butter is an important staple in the South African diet, and we expect strong growth in this category,” said Kruger.

“This new facility will introduce flexibility, improved efficiencies and reduce our cost profile, allowing us to retain our prominent position in the market and respond to consumer needs.”

Brand sells over 5-million kilograms annually

The peanut butter category accounts for 50% of the total South African spreads market, excluding margarine. In total, the spreads market is worth $180-million (R3.4-billion).

Black Cat Peanut Butter is one of the biggest in the market, with 5-million kgs sold per annum in formal retail stores.

Investments in equipment at the manufacturing site will improve reliability and efficiencies. Packaging-line upgrades introduce greater in-house flexibility for quicker innovations and new product offerings, in line with consumer demands for value and affordability.

“This is a significant investment by Tiger Brands, which will further strengthen and grow a proudly homegrown brand,” said Dumo Mfini, Managing Director: Culinary at Tiger Brands.

“As consumers seek value for money, we are well positioned as one of the top players in the market to meet their needs of affordability and nutritional value.”

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