Food and beverage company PepsiCo sub-Saharan Africa has opened a new production line at its Weet-Bix facility, in Atlantis, in the Western Cape, which will boost production capacity.
The new line was funded by a R300-million cash injection as part of the public interest commitments made at the time of the acquisition of Pioneer Foods.
The new production line will create 14 additional jobs across four shifts, as the site will be operational 24/7, and includes expanded silo capacity to store 500 t of wheat.
“PepsiCo’s decision to invest in this new production line is as a result of a specific focus to increase production as consumer trends indicate a demand for healthy, convenient, minimally processed and varied food products.
“Technology is enhancing the efficiency and safety of production processes,” says Weet-Bix facility manufacturing plant manager Hopewell Hlophe.
Weet-Bix is a low-sugar product with few ingredients and uses minimally processed wholegrain wheat. Weet-Bix volumes are expected to accelerate given product health credentials and the value it offers within the ready to eat cereal category, PepsiCo says.
The new production line is required to fuel the capacity for future growth, enabling more focus on and capacity for Weet-Bix innovation into new formats.
An additional R60-million has been spent on an upgrade of the company’s Malmesbury Mill, which is the only source of the specific cleaned wheat needed to produce Weet-Bix. The mill’s expansion will enable wheat supply for a number of years and ensure easier process control in the Weet-Bix cooking process, PepsiCo notes.
PepsiCo’s acquisition of Pioneer Foods in 2020 was approved by the Competition Tribunal subject to a number of public interest commitments. The investments into the upgrades of the Weet-Bix value chain form a part of the committed R6.5-billion capital expenditure investment.
Weet-Bix was first introduced in South Africa in 1930 and is still made using the same recipe today.
In addition to the new production line, the Weet-Bix facility has been fitted with solar panels.
There is now the capacity to generate 1.8-million kilowatt-hours of electricity a year from this facility.