One of South Africa’s most recognisable chocolate brands is set for a new chapter after Tiger Brands confirmed it has reached an agreement to sell Beacon, ending decades of ownership of the historic confectionery business.
The announcement was made in the company’s financial results for the six months ended 31 March 2026 and forms part of a broader strategy to streamline operations and reduce its exposure to certain chocolate-related businesses.
Founded in 1931, Beacon has been a familiar name in South African households for generations. The brand became known for its chocolate slabs, seasonal Easter products and assorted confectionery offerings, making it one of the country’s most established sweet manufacturers.
Tiger Brands first acquired a 50% stake in Beacon in 1990 before taking full ownership in 1998.
Beacon sale forms part of broader restructuring plan
The transaction, concluded in May 2026 after the reporting period, includes the Beacon brand and equipment used to manufacture chocolate slabs, Easter eggs and assorted chocolate products.
Despite selling Beacon, Tiger Brands will retain several popular brands that remain central to its long-term growth plans. These include TV Bar, Nosh, Wonder Bar, Black Cat Chocolate, Jelly Tots Chocolate and the Jungle Energy Bar.
According to the company, these products continue to generate strong returns and support its strategy of expanding snack-focused offerings as consumer preferences increasingly shift toward convenient food products.
The company also disclosed that it entered into an agreement in April 2026 to sell property associated with its former chocolate and confectionery operations. That transaction is expected to be completed before the end of the current financial year.
Beacon has already been classified as an asset held for sale in the company’s latest financial statements. Although the process resulted in a 92 million rand impairment charge during the first half of the year, management expects the impact to be offset by profits generated from the related property disposal.
Financial performance remains resilient
The Beacon sale is occurring alongside Tiger Brands’ efforts to exit its Cameroonian chocolate business, Chococam, further reducing its exposure to the chocolate sector.
However, the company has reversed course on another planned disposal.
Tiger Brands confirmed it will retain King Foods after determining that offers received for the business failed to meet its value expectations. The division has since returned to profitability, prompting management to reconsider its future strategic role within the group.
In its latest results, Tiger Brands reported revenue growth of 1.3% to 17.9 billion rand during the first half of the financial year. Sales volumes increased by 2.6%, although price deflation of 1.3% limited overall revenue growth.
The company noted that South African consumers remain highly price-sensitive amid ongoing economic pressures, with value-for-money purchasing behaviour continuing to shape demand.
Profitability was affected by higher financing costs and lower earnings from associates following the disposal of its stake in Chilean food company Carozzi during the previous financial year.
Basic earnings per share fell by 19.4% to 1,077 cents, while headline earnings per share increased by 6.5% to 1,001 cents.
Despite challenging market conditions, Tiger Brands increased its interim dividend by 3.6% to 430 cents per share and completed share buybacks worth 1.6 billion rand during the reporting period.
Source: Tiger Brands