THE Colors Group, one of the largest fruit exporters in South Africa, says it has put recent upheavals behind it and is fast regaining its position as one of the leading names in the country’s vibrant fruit industry.
“Recently the Farmsecure Group acquired 34% of the Colors Group. This development heralds an exciting new partnership for the Group and provides lasting solutions to the disruptions of recent times.”
On 25 January, a new board was appointed. Board members include Riaan van Wyk, CEO and founding member; Ian Carstens, Executive Director Farming and founding member; Cecil Brummer, MD Sun Citrus responsible for packhouses; Jerome Yazbek, CEO of the Farmsecure Group; and Eugene Yazbek (non-executive chairman), who is also non-executive chairman of the Farmsecure Group.
Last year was a challenging one for the Colors Group, its business units and staff and saw the Group overcome numerous difficulties presented by management disruptions and the en masse departure of a number of its board members and executive staff to establish a rival company.
One of these disruptions was the removal of Riaan van Wyk from his position as CEO (by the now departed board members and executive staff).
The new Colors board recently appointed Professor Barney Jordaan to conduct an independent enquiry into the process and circumstances which led to the removal of Van Wyk from his post.
The board reviewed the results of this enquiry at a board meeting on 26 January and unanimously concluded that there were no legitimate reasons for van Wyk’s removal. They did however question the ethical intent and conduct of the directors and management responsible and are currently seeking legal counsel on the matter.
The board said it had exonerated van Wyk and “regrets and apologises” for the actions of the previous board, “which have caused both Colors and Mr van Wyk much damage”.
The board reinstated him in his previous position of CEO of the Colors Group with immediate effect.
Carstens will manage the farms in collaboration with Farmsecure. It is envisaged that the management of packhouses will also have a different focus, and in this regard Brummer will assist by working closely with van Wyk and Carstens to find and implement an appropriate management structure and reporting line.
Finalisation of this structure will be reached soon and in the interim the board will meet on a monthly basis.
“Fourteen years after its humble beginnings, Colors is still a leader in the market and is eternally thankful for the dedication and loyalty of its staff,” says chairman Eugene Yazbek.
The shareholders have reviewed last year’s business results and they are confident that Colors is well positioned for a successful year ahead, he said.
“Colors was built on the innovative practices and skills of its founding members and today this thinking remains the same.
“Each of the members of the recently appointed Colors board represents a strategic pillar of the Colors business strengths and its partnership benefits with its new partner Farmsecure”.
* Colors is suing Core Fruit and former employees for R15 million in damages.
