Rhodes Food stock faces scrutiny after Tulbagh cannery closure
Published on 11/12/2026 at 00:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSMerger scrutiny intensifies
- Premier says the Tulbagh cannery closure followed worsening global canned-fruit conditions rather than the Rhodes Food transaction.
- The Competition Commission is seeking to revoke the merger approval or impose additional conditions.
- Premier reported stronger interim earnings after incorporating Rhodes Food into its Culinary business.
Premier Group has defended its decision to close the former Rhodes Food Group cannery in Tulbagh, Western Cape, as the Competition Commission challenges the circumstances surrounding the merger. In interim results for the six months through September 2026, Premier said the facility would not reopen because the global canned-fruit market had become commercially unviable. Daily Investor reported the development.
Regulator challenges merger aftermath
Premier attributed the closure to a stronger rand, a large Greek fruit harvest, the bankruptcy of Del Monte and increased competition from Chinese producers. The company said these pressures created an unviable export environment and maintained that there had been no plan to close the plant before the merger was approved.
The Competition Commission has applied to the Competition Tribunal to revoke approval of Premier's acquisition of Rhodes Food Group, or alternatively impose additional merger conditions. Premier rejects the allegation that it withheld material information and argues that the closure was not merger-related. The dispute leaves uncertainty over the plant's future and the effect on employees and Western Cape fruit growers.
Earnings benefit from RFG inclusion
Premier took full control of Rhodes Food Group in March 2026. Rhodes Food now operates within Premier's Grocery division as its Culinary business, giving the enlarged group a broader food portfolio.
For the six months through September 2026, Premier reported revenue of R14.3 billion, up 38.8%, with the inclusion of Rhodes Food contributing significantly to the increase. Operating profit rose 52.5% to R1.7 billion and net profit increased 62.1% to R1.2 billion. Premier did not declare an interim dividend for the period.
Business model and competitive position
Rhodes Food Group is a South African food producer whose activities include canned fruit and other grocery products. Following the acquisition, its Culinary operations form part of Premier's broader Grocery division.
The available report does not provide a sufficiently detailed comparison with named competitors to support a relative market-position assessment.
Rhodes Food Group at a glance
- Company: Rhodes Food Group
- ISIN: ZAE000191979
- Business: Food production, including canned fruit and grocery products
South African equities remain closely tied to regulatory and economic developments in the domestic market; see Current market reports.
