Albany launches R350mn revamped Bellville bakery

Albany Bakeries, a well-established South African brand, has announced a significant investment of R350 million into a new bakery in Bellville. The investment encompasses the construction of a state-of-the-art plant and an upgrade of the interiors of the existing plant. Matshela Seshibe, the Managing Director of Albany Bakeries, joined CNBC Africa to discuss the company's endeavor. Albany falls under the Milbake Division of Tiger Brands, contributing 95% of the group revenue and 43% of the profit in the past year. This investment marks a strategic move by the company to bolster its presence in the market and meet the growing demand for its premium quality products. The bakery has historically excelled in the bread market, maintaining a leading position with its top-end branded packaged bread. Albany's focus on offering soft, long-lasting fresh bread sets it apart from the commodity bread segment, positioning it as a preferred choice for discerning consumers. Seshibe highlighted the company's commitment to innovation, which has earned Albany numerous accolades over the years, including the Sunday Times Brand Award, the South African Icon Award, and the Cassie Award. With a strong emphasis on product freshness and reliability, Albany services around 5,000 outlets primarily in the Cape Metro area. The logistics and production operations are finely tuned to ensure timely delivery of bread to stores every day, representing a significant undertaking by the company. The recent upgrade at the Bellville plant is expected to double the company's capacity, with production output set to increase significantly. The expansion will also lead to job creation, with the workforce expanding from 500 to 700 employees in Cape Town. The investment will enable the Bellville plant to produce 1.7 million loaves per week, catering to a wider customer base and meeting the growing demand for Albany's products. As consumer preferences evolve towards healthier options, Albany has adapted its product portfolio to include a variety of choices catering to different tastes and lifestyles. While white and brown bread remain popular, there is a noticeable shift towards healthier options such as low GI and health loaves. Seshibe emphasized the company's commitment to meeting consumer demands and providing a diverse range of products to cater to changing preferences. With the market dynamics evolving, Albany is poised to capture a larger share of the health-conscious segment. Albany's investment in the revamped Bellville bakery underscores its ambition to position itself as a premium brand in the competitive bread market. The company's focus on quality, innovation, and meeting consumer needs sets it on a path for continued success and growth.