Listed packaged goods company Tiger Brands is investing R300 million in a peanut butter manufacturing plant in Chamdor, Krugersdorp, on Johannesburg’s West Rand.
According to Tiger Brands CEO, Tjaart Kruger, this represents one of the largest investments of capital that the company 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.
“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 Kruger.
The South African Peanut Butter segment represents half, or approximately R1.7 billion, of the total spreads market in the country, excluding margarine, which has a total worth of R3.4 billion.
Black Cat Peanut Butter stands out as one of the largest players in the industry, boasting an annual sale of 5 million kilograms through formal retail channels.
With 12,500,000 jars, each 400-gram jar priced at R50, this translates to approximately R625 million in annual revenue.
The investment in manufacturing equipment aims to enhance reliability and operational efficiencies, while upgrades to the packaging lines will enable the company to introduce new products swiftly, aligning with consumer preferences for value and affordability.
Black Cat holds a distinguished position as South Africa's most cherished and trusted peanut butter brand, acknowledged for its premium quality.
Consumer studies reveal that this nearly century-old brand is present in 7 out of 10 South African households, representing roughly 10 million of the 15 million households that purchase peanut butter.
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