Famous Brands spots gap, buys ‘practically unused’ tomato paste factory
FAMOUS Brands has bought a bankrupt tomato paste factory in the Coega precinct.The factory is state-of-the-art and practically unused, Famous Brands said in its announcement on Monday. It cost R200m to build in 2010. The company did not say how much it had paid.This acquisition follows a purchase of a chips factory, Lamberts Bay Foods, on May 26 in the group’s drive to secure its supply chain by owning makers of key ingredients.Between 30,000 and 35,000 tonnes of tomato paste was imported into SA every year because of a lack of local manufacturing capacity, Kevin Hedderwick, the group’s strategic adviser responsible for mergers and acquisitions, said in the statement.The group intends supporting local farmers by modelling its latest acquisition on Coega Cheese Company, which became a "very successful empowerment venture" called Famous Brands Fine Cheese Company (FBFCC)."In 2013 we established FBFCC as a green-field venture, in which we co-opted local farmers to supply milk for the p...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.