Tiger Brands boosts solar rollout across seven plants as energy costs rise

South African packaged foods group, Tiger Brands, is steadily expanding the use of solar power across its manufacturing network as it works to lower energy costs and reduce reliance on the national grid. The JSE-listed company has now switched on solar systems at seven factories, marking a further step in a long-running plan to reshape how its plants are powered.

The rollout forms part of a broader infrastructure program focused on cleaner energy use and tighter control of production costs. The company aims to source about 31 percent of its electricity from renewable sources by 2030, a target it is pursuing through a mix of on-site solar installations and longer-term power agreements. The shift is a practical response to rising electricity costs and operational uncertainty rather than a short-term environmental initiative.

The operational sites are spread across the Free State, Gauteng, North West, and KwaZulu-Natal, where solar systems are now feeding electricity directly into day-to-day production. The most recent facility to come online is the Boksburg manufacturing plant in Gauteng, which produces well-known household brands including All Gold tomato sauce, Crosse & Blackwell mayonnaise and KOO baked beans. The system was installed under a commercial power purchase agreement with Solar Africa and includes a 1.9 MWh solar setup that began supplying electricity in May 2026.

Tiger Brands targets 30% emissions cut

Tiger Brands’ chief manufacturing officer, Praveen Balgobind, said the company’s approach is shaped by both cost pressures and long-term planning for its factories. “Our investment in renewable energy is about building a more resilient and sustainable manufacturing footprint while supporting South Africa’s transition to a lower-carbon economy,” he said. He added that solar power is already helping several sites rely less on conventional electricity while supporting efficiency improvements across operations.

The company’s environmental targets extend beyond electricity sourcing. It plans to cut carbon emissions by 30 percent and improve energy efficiency by 30 percent over the same period leading to 2030. Rather than applying a single model across all sites, Tiger Brands is using site-specific assessments, energy audits and upgraded metering systems to identify where savings can be made. Management says this approach allows each factory to adopt solutions suited to its own production profile and energy demand.

Alongside on-site generation, the group is also turning to grid-based solutions to meet its goals. Earlier in 2026, it signed a wheeling agreement with renewable energy supplier Apollo Africa that will allow electricity generated off-site to be transmitted through the national grid to its Gauteng operations starting in 2028. Once fully implemented, facilities supplied through the Ekurhuleni Municipality are expected to source as much as 60% of their electricity from renewable energy.

Tiger Brands earnings quality improves sharply

The operational shift comes alongside improved financial performance. For the six months ended 31 March 2026, Tiger Brands reported revenue of R17.9 billion ($1.1 billion), slightly higher than the R17.7 billion ($1.09 billion) recorded a year earlier. The increase was supported by 4.5 percent volume growth, although this was partly offset by a 1.3 percent decline in pricing as the company maintained competitive positioning in key categories.

Operating income rose more sharply, increasing 26.1 percent to R2.1 billion ($129 million), compared with R1.6 billion ($98 million) in the prior period. The improvement was driven by stronger gross margins, which expanded to 32.1 percent from 29.8 percent, helped by lower input costs, factory efficiencies, and tighter control of logistics spending.

Returns also strengthened over the period. Return on equity increased to 26.3 percent from 16.3 percent, while return on invested capital rose to 24.9 percent from 19.1 percent, reflecting improved earnings quality and more efficient use of capital across the business.