Tiger Brands considers selling off its chocolate division

SOUTH AFRICA – Tiger Brands is in the process of reviewing its involvement in the chocolate sector, with early plans underway to potentially sell off its long-standing Beacon chocolate business.

The company has confirmed that while no deal has been finalised, discussions are ongoing to explore a complete exit from the chocolate category.

Beacon, a brand that has been part of South African households for close to 100 years, includes products such as the TV Bar, Nosh, chocolate Easter eggs, and flavoured chocolate slabs like Ebony and Ivory.

Tiger Brands Chief Financial Officer Thushen Govender said the group will continue running the chocolate division as usual while it works toward identifying a viable exit plan.

Chief Executive Officer Tjaart Kruger has acknowledged operational difficulties within the chocolate business, citing outdated equipment that has not been upgraded in three decades.

Kruger said the cost of bringing the production facilities up to modern standards would be too high to make financial sense at this stage.

He added that Beacon chocolates struggle to compete with bigger players in the market despite undercutting prices by as much as US$0.21 to US$0.26 (R4 to R5) per slab.

Kruger noted that even with lower prices, the brand has not been able to increase its market share or sales volume meaningfully.

He also said that while the division is no longer aligned with the company’s long-term strategy, the Beacon brand could still perform well if managed by another operator with the right resources.

As Tiger Brands explores possible buyers or other strategic options, there is no confirmed timeline for when the business might change hands.

In the meantime, production of Beacon chocolates will continue as normal until a suitable way forward is identified.

Other brands not affected

The company has assured customers that the rest of its confectionery range, which includes Jelly Tots, Fizzer, Maynards Wine Gums, Liquorice All Sorts, and Marshmallows, will remain unaffected by the potential divestment.

Additionally, products like the Jungle Oats Bar, which falls under a different category, are not part of the review and will continue to be manufactured and sold as usual.

For now, Beacon’s future remains uncertain, but Tiger Brands says it is committed to managing the transition carefully to avoid disruptions.

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