TIGER BRANDS PRODUCTS RECALL, SHARE PRICE TAKES HUGE KNOCK

SOUTH AFRICA – Shares in South Africa’s biggest consumer foods producer Tiger Brands and RCL Foods fell yesterday after the government linked a deadly listeria outbreak to cold meat products known as ‘polony’ made by Tiger unit Enterprise Food.

Health Minister Aaron Motsoaledi said last Sunday the source of the outbreak, which has been blamed for 180 deaths, is the Enterprise facility in Polokwane and that inquiries were ongoing at a second facility owned by the same firm.
Motsoaledi said although RCL Foods had not been identified as a source of the outbreak, a facility owned by RCL was under investigation. He announced a recall of polony products made by the two companies.
The minister also told South Africans not to consume ready-to-eat processed meat across the board due to the risk of cross-contamination.

Tiger Brands shares fell more than 10 per cent at market open before paring losses to stand down 6.7 per cent to E396.49 at 0744 GMT.
Tiger Brands said it had suspended operations at both Enterprise manufacturing facilities in Polokwane and Germiston. Shares in RCL Foods fell more than six per cent before paring losses. At 0727 GMT they were down 1.34 per cent at E16.97.
RCL said it was recalling its polony products even though test results were still pending.

South African supermarket operator Pick n Pay said it had withdrawn the meat products from its shelves.
“We are urgently withdrawing them from our stores,” Tamra Capstick-Dale, said in a statement on behalf of the grocer.

“All fridges and food preparation areas in our stores will now be re-cleaned to prevent any cross-contamination. Recalled meat is being isolated and will be safely destroyed.”
There have been 948 cases of listeria reported since January 2017. The disease causes flu-like symptoms, nausea, diarrhoea, infection of the blood stream and of the brain.
Listeriosis poses a higher risk for newborns, the elderly, pregnant women, and persons with weak immunity, he said.

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