TIGER BRANDS COULD PAY OUT R425 MILLION TO LISTERIOSIS VICTIMSDate: 2018-03-19
Tiger Brands said that they would pay about R425 million that could arise from legal claims and that the company intends to close down more facilities after more than 180 people have died from listeriosis.
A statement, released by Tiger Brands on Monday morning, said the packaged goods company faces roughly R425m in a legal claim over 180 listeriosis deaths blamed on processed meat and its subsidiary, Enterprise Food.
The company also reported that it expected its meat product unit to record a monthly loss of up to R33 million, after its suspension of operations at four of its sites after the listeria outbreak.
Furthermore, the cost of suspending operations and destroying questionable food would be between R337m and R377m‚ of which Tiger Brands says it hopes to recoup R94m from insurers‚ the statement read.
On 5 March 2018, Tiger Brands, in response to the communication to the results of tests conducted by the Department of Health (DoH) at its VAMP site in Polokwane, undertook a national recall and suspended operations at both its Polokwane and Germiston sites.
The company has since announced a decision to extend the initial recall to include all products manufactured at VAMP’s Pretoria facility; production at the plant, which produces the Company’s SNAX brand, will also be suspended.
The company said the decision was taken as a result of the detection of Listeria monocytogenes at the facility, following heightened testing protocols which have been introduced.
Tiger Brands reportedly distanced itself from the deaths linked to foodborne disease, drawing the ire of both the public and Health Minister, Aaron Motsoaledi, who called for the company to be held to account.