By Tiger Brands has launched a new R300 million peanut butter manufacturing plant in Chamdor, Krugersdorp. The capital investment will create additional jobs to the current 62 permanent employees.
The new plant will be home to the much loved peanut butter brand ‘Black Cat’ which dominates the peanut butter sector that has a market value of R1.7 billion in South Africa. According to the CEO of Tiger Brands, Tjaart Kruger, Black Cat can be found in 10 million out of the 15 million households in South Africa.
Kruger says the investment, is one of the largest that the company has made in a single project, which is a viable investment in the peanut butter category which signals an opportunity with 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.
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,” said Tjaart Kruger.
Black Cat peanut butter has been in the market for nearly 100 years and has become the most loved spread over the years, and is selling an average of 5 million kgs per annum in retail stores across the country.
The Deputy Minister of the Department of Trade, Industry and Competition (DTIC) Ms. Nomalungelo Gina, who was at the launch said, the investment made by Tiger Brads affirms the company’s confidence in the economy of South Africa.
Gina applauded the company for their support towards small businesses and supporting local economy by procuring 70% of the peanuts from local markets or businesses, and the remaining 30% from markets outside the borders of South Africa due to local farmers not being able to meet their total demand of peanuts.
“As government, we insist on this policy direction because we know that Small Micro and Medium Enterprises (SMMEs) contribute 34% to the national GDP and they are a largest employer. As the country, we are under pressure to maximize employment in this country as we are pursuing re-industrialization of the economy, SMMEs will remain an important aspect of growing our economic base. Big corporates have an obligation to use the ESD model effectively through empowerment measures such as ESD mechanisms,” she said.
Minister Nomalungelo Gina further urged Tiger Brands and other South African companies to take advantage of the African Free Continental Trade Area (AFCTA) to spread their wings across the African economies and grow.
