Tiger Brands, a consumer goods manufacturer listed on the JSE, has reaffirmed and expanded its logistics partnership with Transnova, a supply chain firm, following a competitive tender process that concluded in June 2026.
This move cements Transnova’s role as the main logistics partner tasked with managing and optimizing Tiger Brands’ national distribution network.
The logistics operation manages approximately two million tons of finished goods annually, catering to over 4,000 customers across 190,000 delivery points nationwide.
Earlier this year, a formal request for proposals was issued to meet governance obligations for JSE-listed companies, ensuring that significant contracts undergo competitive processes.
Transnova, which has been working with the food manufacturer since 2016, retained the contract and received an expanded mandate as the lead logistics partner after a competitive evaluation.
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The expanded mandate aligns with a significant portfolio reset under Tiger Brands CEO Tjaart Kruger, as the company divests non-core assets to focus on more lucrative growth sectors.
In June 2026, Tiger Brands announced the sale of parts of its legacy Beacon chocolate brand while retaining selected snack brands in line with its long-term strategy.
The firm has also completed the sale of its Randfontein operations and previously exited its equity stake in the Chilean food company Carozzi.
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In conjunction with these portfolio adjustments, Tiger Brands reported strong financial results for the first half of FY26:
- Operating income: Increased by 26.1% to R2.1 billion, driven by margin improvements and cost-saving measures.
- Volume performance: Achieved a 4.5% growth in volume despite price deflation in various categories.
- Capital returns: Returned R9.2 billion to shareholders via special dividends and share buybacks since FY24.
In this framework of capital allocation and cost management, the logistics contract expansion highlights the group’s ongoing dedication to enhancing bottom-line efficiencies.
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A decade of control tower optimization
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The partnership commenced in 2016 when Tiger Brands selected Transnova to establish a centralized logistics control tower integrated with a transportation management system and business intelligence analytics.
This structural change transitioned Tiger Brands from a single third-party logistics provider model, which had imposed operational constraints and elevated transport costs, to a multi-carrier network with over 60 contracted carriers providing real-time visibility.
According to group metrics, the decade-long partnership has delivered significant operational results:
- Cumulative savings: More than R300 million realized through transportation and network efficiency enhancements.
- Disbursement oversight: Management of over R900 million in annual transportation expenditures.
- Execution scale: Delivered over 605,000 loads to more than 190,000 locations.
This operational transformation garnered industry accolades in 2025, winning a Gold Award at the Logistics Achiever Awards and an Outstanding Achievement award at the Supply Chain Excellence Awards.
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