Ref. No - BFS938392

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS938392

Sector - Food

Asking Price
R4,149,892
Monthly Profit
R138,374
Asset Value
R 5,370,468
Stock Value
R 249,892
Yearly Net Profit
R 1,660,487

Summary

Well-established fresh produce operation combining sourcing, processing, warehousing and distribution capabilities. Supported by modern systems and infrastructure, the business is ideally positioned to capitalise on growing demand across commercial, retail and institutional markets.

Give me more information

Fully describe the business's activities?

Retail and wholesale distributors of fresh produce. The business supplies fresh produce to retail, wholesale, hospitality, education, healthcare, independent retail and potentially, national retail customers. The business also offers retail operations, home delivery, online ordering, refrigerated delivery and packaging capabilities.

How does the business operate on a daily basis?

Daily operations include buying fresh produce on the market, picking and packing for deliveries, preparation of produce, account administration, stock control, cold room monitoring, vehicle inspections, fleet management, driver accountability, online ordering, automated invoicing and integrated payment controls.

What Advertising/Marketing is carried out?

Social media and physical repping. Professional branding, packaging, barcode capability and online ordering also support market growth and customer acquisition.

What competition exists?

There are several competitors in the area, if the major retailers are included. The company differentiates itself through service, quality, price, supplier relationships, refrigerated delivery, online ordering, financial discipline and operational controls.

How could the profitability of the business be improved?

Profitability could be improved through improved staff distribution, additional marketing, modernised working methods, Global Food Safety Initiative (GFSI) accreditation, expansion into national retail supply chains, institutional customers, export opportunities, online ordering growth, increased processing capacity, warehouse automation, expanded cold storage and improved energy efficiency.

Give a breakdown of staff/ functions/ length of service?

Weekly paid: 3 preparation staff, 2 drivers, 1 driver/team leader, 6 general assistants including one driver/general assistant.
Monthly paid: 2 Owner/Directors, 1 Debtors Clerk, 1 Human Resources/Supplier Relations employee

Do any have management potential?

Yes

How involved is the Owner in running the business?

Very involved, including buying, overview and marketing. Directors also oversee strategic planning, operational improvements and financial controls.

When does the current lease end?

November 2026.

What are the trading hours?

Monday to Friday: 06:00 - 16:00.
Saturday: 06:00 - 09:00 while on standby.

What are the main assets of the business?

Main assets include high-care food processing facility, expanded cold storage, industrial racking systems, Hyster forklift, refrigerated delivery fleet, diesel management trailer, warehouse workflow infrastructure, barcode and packaging systems, Sage Accounting, Netcash payment controls, online ordering platform, cloud document storage and payment gateway integrations

Strengths?

• Established and trusted family-owned business trading since 1972, providing over 50 years of market presence and customer relationships.
• Diversified revenue base across retail, wholesale, hospitality, education, healthcare and independent retail customers.
• Strong reputation built primarily through word-of-mouth referrals and long-standing customer loyalty
• Modern operational systems including Sage Accounting, Netcash, cloud-based document storage, automated invoicing and online ordering capabilities.
• Refrigerated delivery fleet and cold-chain infrastructure provide a competitive advantage and service reliability.
• Expanded cold storage, food processing capabilities and packaging technology support scalability and value-added product opportunities.
• Strong financial governance with controlled debtor management, reconciliations and digital record-keeping systems.
• Experienced management team with significant industry knowledge and hands-on owner involvement.
• Operates in an essential industry where fresh food demand remains relatively resilient through economic cycles.

Weaknesses?

• Limited marketing activity with customer acquisition still largely dependent on word-of-mouth referrals.
• Approximately 70% of sales are on credit, increasing working capital requirements.
• Exposure to perishability and stock losses inherent in fresh produce operations.
• Business currently lacks GFSI accreditation, limiting access to some national retail and export opportunities.

Opportunities?

• Achieving GFSI accreditation could unlock national retailers, export customers and premium commercial contracts.
• Expansion into national supermarket groups, hospitals, schools, hospitality groups and corporate catering channels already identified in the strategic plan.
• Growth in online ordering, home delivery and digital customer engagement.
• Development of value-added and processed produce offerings using the existing processing infrastructure.
• Growing demand for food safety compliance, traceability and professionally managed supply chains favours organised operations.
• Expansion of cold storage, warehouse automation and distribution footprint can improve margins and operational efficiency.
• Potential export opportunities as South Africa continues to develop fresh produce export channels and compliance-driven supply networks.
• Renewable energy projects could reduce electricity-related operating costs and improve business resilience.

Threats?

• Competition from major retailers, fresh produce distributors, wholesalers and vertically integrated food suppliers.
• Seasonal fluctuations in produce availability and pricing can impact margins and product supply.
• Climate change, weather events and agricultural disruptions affecting farming output and produce quality.
• Rising fuel, logistics, labour and utility costs can place pressure on profitability
• Economic pressures on consumers and hospitality businesses may reduce volumes or increase price sensitivity.

What is the reason for the sale?

One of the directors has new opportunity that he seeks to explore, whilst the other director wishes to retire.
Location

Contact | Enquire

Gary

Gary Gower

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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