Tiger Brands should settle, says minister
CEO Lawrence MacDougall said Tiger Brands had adequate insurance to meet any costs that might arise from such a suit
Tiger Brands's difficult year is set to get worse, with the outlook remaining "challenging" in the wake of the listeriosis outbreak. Earlier this year, the company - one of South Africa's biggest food producers - had to suspend operations at its factories in Polokwane, Germiston and Pretoria after the Department of Health linked them to the food-contamination crisis that has killed more than 200 people so far and made more than 1000 ill. The company had to recall all its Enterprise products. The fallout has seen the company's share price fall more than 15%. Speaking at Tiger Brands' results presentation this week - where the group reported a 4% decline in interim revenue - CEO Lawrence MacDougall said the recall had cost R365-million net of initial insurance claims. Tiger Brands had recalled 4000 tons of product which it was in the process of incinerating. MacDougall declined to estimate how much it would cost to relaunch the Enterprise brand, or the total cost to the group of the d...
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