Rhodes Food Group’s share price rose as much as 7% on Tuesday after the company announced that it will supply US Walmart stores with canned pear halves and slices.
The stock has plummeted almost 21% in the last month and just more than 19% in the year to date as SA consumers cut back on spending amid a weakening economy.
The share closed 5.9% higher at R13.39 on Tuesday, giving the company a market capitalisation of R3.5bn.
Rhodes, which listed on the JSE in 2014, is a producer of canned foods, baby foods, fruit juice and baked beans. Its brands include Pakco and the Bull Brand canned meats. It has 15 manufacturing facilities across SA and a fruit processing facility in Eswatini.
Rhodes exports products to countries such as the US.
“With SA having some of the world’s best canning fruit varieties, Walmart was impressed with the quality and taste of the pears from Rhodes Food Group,” Massmart, Walmart’s subsidiary, said.
Massmart did not disclose the value of the deal, and Massmart spokesperson Refilwe Boikanyo said this was a “starting order”, without elaborating.