Premier Foods weighs options for closed Tulbagh cannery
Premier Foods is trying to find a new purpose for its Tulbagh cannery after bringing production at the Western Cape facility to an end.
Premier Foods
Premier Foods is trying to find a new purpose for its Tulbagh cannery after bringing production at the Western Cape facility to an end. The factory, which came into the group through its RFG Holdings merger, has become the subject of a dispute with the Competition Commission.
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Premier Foods is trying to find a new purpose for its Tulbagh cannery after bringing production at the Western Cape facility to an end. The factory, which came into the group through its RFG Holdings merger, has become the subject of a dispute with the Competition Commission. The commission is questioning why a production facility was closed so soon after the deal was approved.
Premier, the owner of Blue Ribbon and Snowflake, says it is looking at alternative business opportunities for the property. It has not yet explained what could replace the cannery or how many jobs a new operation might support.
A factory that became too expensive to run
“Premier may find another use for the Tulbagh property, but replacing the jobs, farmers' markets and business relationships built around the cannery will be a much bigger challenge.”
Premier says the decision to close the cannery was driven by the economics of the business. Operating costs had increased, production levels were lower and international demand for canned fruit had weakened. Keeping the factory open under those conditions was no longer financially sustainable, according to the company. Premier also rejects the suggestion that the closure was part of its original merger plans. It says the commercial conditions that led to the decision developed after the transaction.
The merger is now part of the dispute
The timing has put Premier in a difficult position. Its R6.5 billion merger with RFG Holdings received approval in March 2026, subject to conditions addressing issues such as employment and the public interest. The Competition Commission says the commitments made during the merger process included assurances around production facilities. The subsequent closure of the Tulbagh cannery has prompted the commission to challenge whether those commitments were respected. It has approached the Competition Tribunal, asking for the merger approval to be revoked. Premier is opposing the application.
Farmers have another problem to deal with
The factory's closure has consequences beyond the people who worked there. Fruit growers who supplied the cannery also need somewhere to sell their produce. Premier has reached agreements with 82 farmers, involving approximately R67 million in payments to support the removal of peach orchards and the transition to other crops. Arrangements have also been made to help farmers find buyers for their fruit during the coming season. For growers, changing crops is not an overnight decision. It involves removing existing orchards, preparing land and waiting for new plantings to produce commercially viable harvests. The employment impact is also significant. The closure affected 409 employees, with most reportedly accepting voluntary separation agreements.
What will replace the cannery?
Premier's search for another use for the property raises a practical question: what kind of business can operate from the site and make commercial sense? A new tenant or operation could bring some jobs back to the area, but it may not employ the same number of people or buy the same volumes of agricultural produce as the cannery did. That leaves Tulbagh with two immediate concerns: finding new markets for local farmers and helping former factory workers find employment. Premier may be able to put the property to another use, but replacing the business relationships built around the cannery will be a much bigger task.
