Famous Brands will be looking at “capitalising on the shortage of tomato paste…in the South African market” with its purchase of a “state-of-the-art tomato paste manufacturing plant in the Eastern Cape”.

A statement on Monday said Cape Concentrate‚ which is situated in the Coega precinct in the Eastern Cape‚ “was bought out of liquidation at a significantly discounted purchase consideration”.

It described it as a “practically unused facility‚ constructed in 2010 at a cost of R200-million”.

Famous Brands’ Kevin Hedderwick said: “This acquisition will enhance the Group’s capability to manufacture licensed products for our franchise network as well as provide security in respect of a significant menu item and manufacturing ingredient.

 “We also plan to expand the customer base for this product beyond our own internal customers‚ capitalising on the shortage of tomato paste which exists in the South African market.”

 He added that Famous Brands “currently imports in the order of 1 500–2 000 tons of tomato paste per year for use primarily in our sauce and spice plant‚ which manufactures sauce products for the group’s 2 600-strong restaurant network as well as for our retail (trade) customers”.

 The new business will be modelled after “the Group’s very successful empowerment venture‚ Famous Brands Fine Cheese Company (FBFCC)‚ formerly Coega Cheese Company”.

 “The new company will comprise a strategic alliance partnership between local farmers‚ who will grow tomatoes on contract‚ and Famous Brands‚ which will be responsible for providing the customer base‚ as well as managing the production and route-to-market functions‚” the statement said.

 The operation will be commissioned early in 2017. – TMG Digital