Tiger Brands sells Beacon Brand as it exits chocolate manufacturing  

SOUTH AFRICA – Tiger Brands has agreed to sell its iconic Beacon brand and related chocolate manufacturing equipment as part of a broader strategy to streamline its portfolio and focus on higher-margin product categories. 

The disposal includes equipment used to manufacture chocolate slabs, Easter eggs and assorted chocolate products. The company will, however, retain several key confectionery brands, including Nosh, TV Bar, Wonder Bar, Black Cat chocolate products and Jungle energy bars, which it views as important growth drivers within its snacking portfolio. 

The move forms part of Tiger Brands’ ongoing portfolio optimisation programme, which has already seen the disposal of several non-core businesses and assets. The company recently sold its Randfontein maize and wheat milling operations for R282 million and continues to review additional assets for potential divestment. 

The strategy appears to be delivering results. Tiger Brands reported operating income of R2.1 billion, while revenue increased slightly to R17.9 billion during the reporting period. 

Beacon, a 95-year-old South African confectionery brand, has been part of Tiger Brands for decades. The company acquired a 50% stake in Beacon in 1990 before taking full ownership in 1998.  

Over the years, the business expanded to include well-known brands such as Maynards, mmmMallows, Liquorice Allsorts and Sparkles, many of which have grown into major confectionery brands in their own right. 

Tiger Brands CEO Tjaart Kruger previously acknowledged challenges within the chocolate business, noting that manufacturing equipment had not been upgraded for more than three decades.  

As a result, the company has struggled to keep pace with larger competitors such as Cadbury and Nestlé in the chocolate category. 

The highly seasonal nature of the Easter egg business also influenced the decision to exit parts of chocolate manufacturing. Despite the sale, Tiger Brands will continue producing several profitable chocolate-based products. 

The company said the retained brands are in addition to being profitable and remain a strategic enabler of its snackification growth platform. 

Chief Financial Officer Thushen Govender highlighted the strong performance of the Jungle brand, saying, “Jungle Bar is now in the top three countlines in the country.” 

“It’s performing exceptionally well, and that’s also helping the profit mix,” he added. 

The restructuring process remains complex as Tiger Brands continues producing jellies, candy and marshmallow products while separating parts of the business. The confectionery division accounted for 18% of group revenue in the first half and delivered profit of R505 million. 

Reflecting on the company’s transformation, Kruger said the leadership team has focused on simplifying the organisation. “We are there and we must make sure that we focus on this organisation as a simplified business where we focus on big things and not fiddle around with stuff that doesn’t make a difference.” 

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