Tiger Brands, one of Africa’s largest listed food manufacturers, is constructing a large-scale bakery facility on South Africa’s East Rand to streamline its inland bread production network.
The new facility represents a structural shift for the 105-year-old company as it modernises its milling and baking division. Designed to replace five to six older, less efficient inland bakeries scattered across the region, the facility will operate under Tiger Brands’ Albany bread brand. When the factory reaches full operational capacity, it is projected to produce 12,000 loaves of bread per hour. According to the company, the bakery is expected to be completed before the end of 2026.
The plant is designed to leverage economies of scale and re-engineer the company’s raw material supply chain and logistics network. Crucially, the facility is projected to slash conversion costs by 50% while eliminating approximately 250 million ZAR ($15.4 million) in annual overhead expenses, as Tiger Brands aims to become the lowest-cost producer of bread in South Africa. Last December, the company also invested 1 billion ZAR ($58.55 million) in a bakery facility in Pretoria to consolidate operations.
Source: Milling MEA
