https://www.engineeringnews.co.za
Business|Packaging|supply-chain|Packaging|Products|Operations
Business|Packaging|supply-chain|Packaging|Products|Operations
business|packaging-company|supply chain|packaging|products|operations

Pick n Pay to buy Western Cape-based meat processing company

29th June 2023

By: Cameron Mackay

Creamer Media Senior Online Writer

     

Font size: - +

Fast-moving consumer goods retailer Pick n Pay has concluded an agreement to acquire the business operations of abattoir and meat processing and packaging company the Tomis group of companies for up to R340-million.

Tomis’ production facilities are situated in Wellington, in the Western Cape, and include a 15 000 m2 under-roof lamb feedlot, lamb and beef abattoirs and a meat packaging plant situated on a 140 ha farm. Tomis employs about 320 people.

Meat and butchery is a key product category for both Pick n Pay and Pick n Pay QualiSave under the group’s Ekuseni strategy. The acquisition will significantly enhance the retailer’s fresh meat offering to customers, while providing the group with a number of benefits.

The first benefit is a higher-quality, more consistent red meat offering – a category that is a key element of Pick n Pay’s customer value proposition.

The acquisition also provides an enhanced ability to develop and roll out innovative, value-added products for customers, the retailer states.

It will also help to reduce red meat costs, unlocking the ability to give customers greater value.

This is in addition to centralised meat packaging, providing a more reliable supply, and unlocking synergies through the Pick n Pay group’s centralised supply chain distribution network.

Lastly, the acquisition provides sales growth opportunities, with the potential to supply Pick n Pay franchisees Boxer and other retailers and wholesalers.

The purchase price will be split into an upfront cash payment of R323-million and a fixed capped deferred price of R17-million payable on the third anniversary of the transaction.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 
Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.489 0.547s - 164pq - 2rq
Subscribe Now