Rhodes seals canning deal

Rhodes Food Group, which has been on a buying spree, has had its latest bid approved by the Competition Commission.

Johannesburg - Rhodes Food Group, which has been on a buying spree, has had its latest bid approved by the Competition Commission.

The company has recently announced several deals, including of Deemster for R10 million, plus its trading stock for R15 million as it seeks to expand its range.

That deal has now been approved.

Deemster has a canning and bottling business in Bethlehem in the Free State and its products include canned vegetables and bottled salads and pickles such as beetroot and gherkins.

This, says Rhodes, offers it an opportunity to enter into these new categories.

In addition to the canning business, Rhodes has also agreed to buy Boland Pulp for R101.6 million expand its product range. Boland Pulp, which is based in the Western Cape, produces and distributes fruit and vegetable concentrates and purees through brands such as Puré Chef Ease, Puré Squish Baby and Puré Organic Mini Meals.

Rhodes has also bought several properties from Boland Properties for a total amount of R7.9 million. These properties are all in Wellington.

Its other purchase in the food sphere is one which has also recently approved. It bought Saint Pie for a total of R27 million to expand into the pastry products sector. Saint Pie mostly makes savoury pies, which it distributes to fuel station forecourts, food retailers and independent outlets throughout South Africa.

Rhodes Food Group is one of the oldest food producing companies in South Africa with a heritage that dates back to 1893 when the original founders pioneered the deciduous fruit processing industry in the country.

The company's growing portfolio of brands includes Rhodes, Magpie, Bull Brand, Hazeldene, Portobello and Trout Hall. These brands are complemented by premium private label product ranges, produced for select domestic and international customers.

It has exclusive arrangements with Woolworths, a South African food and clothing retailer, to provide ready-made meals and to supply Ayrshire dairy products in the Western Cape and Eastern Cape.

Rhodes, which was listed last October, grew turnover 12 percent in the six months to March, hitting R1.3 billion, and boosting headline earnings per share to 36.6c, a 117 percent increase.

Its strategy is to complement organic growth by expanding into new product categories which are complementary to its current products.

IOL