Tiger Brands, one of South Africa’s leading food producers, is considering selling its iconic Beacon chocolate range amidst modernisation and market challenges.
Tiger Brands, a household name in South African food production, has revealed plans to potentially sell its cherished Beacon chocolate brand. Established nearly a century ago, Beacon has cemented its place in the hearts of South Africans with iconic treats like TV Bar, Nosh, chocolate-and-marshmallow Easter eggs, and coveted chocolate slabs featuring popular flavours like Ebony and Ivory.
While a definitive decision has yet to be made, the company confirmed it is exploring options to divest from its chocolate category. “We will continue delivering on the strategic turnaround of the business until such time as an appropriate exit mechanism has been identified,” commented CFO Thushen Govender in an interview with News24.
Tiger Brands CEO Tjaart Kruger highlighted the challenges facing the chocolate division, acknowledging the company’s decline in technological advancement. “We’ve probably fallen behind in technology,” Kruger admitted, explaining that the company has not upgraded its chocolate-making equipment in over 30 years. The investment needed to modernise the facility is now considered too costly to justify. Despite these setbacks, Kruger remains optimistic about Beacon’s potential, saying, “In the hands of the right person, the Beacon chocolate brand can be a good business.”
Competing in a market dominated by global chocolate giants poses its own set of difficulties. “We price our slabs about R4 or R5 cheaper than Cadbury and still don’t achieve the volumes,” Kruger noted, emphasising the uphill battle Beacon faces in terms of market share.
As the beloved chocolate brand’s future hangs in the balance, South Africans will be watching to see how Tiger Brands navigates this strategic shift while preserving Beacon’s legacy.
Source: IOL
