Western Cape fruit cannery will not reopen for upcoming harvest

Premier Group has decided not to reopen its Fruit Processing Western Cape (FPWC) cannery for the upcoming harvest season following an assessment of the business and global canned-fruit market.

The decision was announced in Premier Group Limited’s trading statement for the six months ending 30 September 2026. The group said its board decided in July not to reopen the Western Cape facility due to structural changes in the global fruit-canning sector.

“The industry has been in long-term decline, with canneries closing globally as demand for canned fruit products has dramatically decreased,” Premier said.

FPWC exports approximately 90% of its processed fruit. According to Premier, export prospects have deteriorated to a point where the facility is no longer economically viable.

© Premier

The operation dates back to the 1940s and later operated under Del Monte Fruits South Africa before Rhodes Food Group acquired it in 2010. Investments were subsequently made in automated canning lines, cold storage, and processing capacity. The factory and related assets are estimated to be worth around US$57.5 million.

FPWC became part of Premier following its US$374 million acquisition of RFG Holdings. Premier said the decision not to reopen the cannery was independent of the acquisition and resulted from conditions in the global fruit-canning industry.

A Section 189 consultation process has been initiated, affecting 424 employees. Premier said it remains open to parties interested in acquiring FPWC as a going concern.

The company is also negotiating with Langeberg Foods, South Africa’s other deciduous-fruit cannery, over a possible transfer of part of FPWC’s fruit-supply contracts and equipment. Premier plans to process as much fruit as economically viable into pulp and purée at its Groot Drakenstein facility.

Growers will be compensated for contractual shortfalls between agreed fruit volumes and the quantities ultimately processed. The Tulbagh site is also available for possible repurposing if alternative markets can be identified.

The Competition Commission is examining the closure following a complaint concerning whether the retrenchments could breach the three-year no-retrenchment condition attached to Premier’s acquisition of RFG Holdings.