Premier Foods Group confirmed it is currently in a 189 consultation process

Premier Group’s proposed closure of its Tulbagh fruit-processing plant could deal a severe blow to workers, farmers and businesses that depend on the region’s agricultural economy.

The company confirmed that it had started a Section 189 consultation process with affected employees and recognised representatives over the proposed controlled closure of its Fruit Products Western Cape business.

Premier is a JSE-listed consumer packaged goods manufacturer with roots stretching back more than 200 years. Its portfolio includes well-known brands such as Blue Ribbon, Snowflake, Iwisa, Manhattan, Rhodes Quality and Bull Brand, while its operations span milling, baking, confectionery, personal care and food production.

Premier said the Tulbagh business is no longer economically sustainable in its current form. The company cited declining global demand for canned fruit, changing export conditions, pricing pressure, rising input costs and the need for greater scale in an increasingly competitive international market.