Tiger Brands restarts distribution of bread in KwaZulu-Natal

SA’s largest food producer, Tiger Brands, has resumed bakery operations and distribution in KwaZulu-Natal, which was the epicentre of last week’s looting frenzy and damage to property, which has cost businesses billions of rand.

“Deliveries are taking place where our customers’ stores have resumed operations and where we have safe access to the market, Tiger Brands said in a statement.

“High consumer demand following interruptions in bread supply is affecting our ability to keep shelves fully stocked. In Gauteng, we continue to deliver bread where our customers have resumed operations. However, panic buying in some areas remains a challenge in keeping shelves stocked.”

Tiger Brands joins grocery retailer Spar in resuming operations, signalling signs of relative stability after a week-long drama during which shopping malls, warehouses and factories were looted and vandalised in the social unrest, which the government has characterised as a failed insurrection.

An estimated 161 malls and shopping centres were targeted, as well as 11 warehouses, eight factories and 161 liquor outlets.

Spar said on Friday that the distribution of stock to its stores had resumed in KwaZulu-Natal and the cleanup of looted and damaged stores is under way. A total of 184 stores, making up 7% of Spar’s store network across Southern Africa, were affected in the two provinces.

“We will support our retailers in rebuilding the businesses they have lost and also the communities they serve.

“We are working closely with our suppliers and are focused on getting stock to shelves,” Spar CEO Brett Botten said.

The resumption of operations by the two companies coincided with the reopening of the N3 highway between Durban and Johannesburg, which has allowed the flow of freight trucks after the government beefed up security personnel along the route.

Dozens of freight trucks were set ablaze at the start of the violence, leading to the temporary closure of the N3 highway and raising fears of food shortages.

Tiger Brands, the owner of brands such as Tastic rice and Albany, has said that KwaZuluNatal accounted for the bulk of the more than R150m in stock losses it suffered as a result of widespread looting.

Shares of Tiger Brands, which said it has insurance cover in place, ended 1.89% lower at R205.75 on the JSE on Friday. Spar shares ended 0.27% higher at R178.56, valuing the grocery retailer at R34.39bn.