Tiger Brands and Rainbow shares drop sharply on listeriosis news
The strain responsible for the deadly outbreak has not been confirmed at Rainbow's Wolwehoek operation
Tiger Brands’ share price fell 13% to R370.30 and RCL Foods’ share price dropped 6.4% to R16.10 shortly after the JSE opened at 9am on Monday morning. The market reacted to a statement Health Minister Aaron Motsoaledi made on Sunday saying two unrelated polony brands — manufactured by Tiger Brands subsidiary Enterprise and RCL Foods subsidiary Rainbow Chicken — had been found to contain listeriosis. Tiger Brands issued a statement on the JSE’s Sens service at 8.46am confirming that its Enterprise Foods subsidiary had been ordered to recall its polony, frankfurters and smoked Russian sausages. CEO Lawrence MacDougall said on Sunday afternoon that thegroup had undertaken a full national recall of the affectedEnterprise ready-to-eat meat product range. The food producer did not provide any estimate of the financial cost of the recall and the suspension of operations at its Polokwane and Germiston facilities. Tiger Brands said on Monday it was taking three measures to kill the listeria ...
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