JOHANNESBURG - Tiger Brands said that about R425m could arise from legal claims and as 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 roughtly R425m in legal claims for over 180 listeriosis deaths blamed on processed meat from its subsidiary, Enterprise Foods.
The company also reported that it expected its meat products unit to record a monthly loss of up to a R33 million ($2.7 million) - this, after it's suspension of operations at four of it's 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 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 initially distanced itself from the deaths linked to foodborne disease, drawing the ire of both the public and Health Minister Motsoaledi, who called for the company to be held to account.
- BUSINESS REPORT ONLINE