COMPANY COMMENT
Court of public opinion likely to savage Tiger
The share price fall is an indication there may be plenty of pain ahead for Tiger Brands
Make no mistake, the backlash against Tiger Brands will be mighty — even if there is, as yet, no obvious link between the company’s products and the deaths of about 180 people from a listeriosis outbreak. While mostly unspoken, trust is a critical element in the contract between company and customer, particularly so if the product is edible. Take for example China’s tainted milk scandal of 2008. At least six babies died and more than 300,000 were taken ill after powdered and ordinary milk was found to have been contaminated with high levels of melamine. That scandal led to the bankruptcy of dairy suppliers in the Sanlu group, according to reports, while two executives in the milk sector were handed death sentences. The regulatory environment in SA is not so draconian, but the court of public opinion is likely to be vicious. Tiger’s advantage is that it has acted swiftly since first detecting low levels of listeria in certain processed meat products early in February and it seems to ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.