Listeria outbreak hits Tiger Brands, RCL shares
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 polony made by Tiger unit Enterprise Food.
Health Minister Aaron Motsoaledi said on Sunday that the outbreak had killed 180 people since January last year and that it had been traced to polony from a Tiger Brands factory in Polokwane. He said a plant owned by RCL Foods was being investigated.
The minister also told South Africans not to consume ready-to-eat processed meat across the board due to the risk of cross-contamination.
The announcement prompted a frenzied clearing and cleaning of the shelves by Shoprite, Pick n Pay, Spar and Woolworths, which also urged consumers to return the meats for refunds.
Zambia’s high commissioner to South Africa, Emmanuel Mwamba, urged South African retail chain stores operating in Zambia to recall ready-to-eat meat products imported from that country following the confirmation of the source of listeria bacteria.
Shares in Tiger Brands sank as much as 13%, before recouping some losses to trade 7.5% lower at R392.98. RCL Foods fell more than 6% but later recovered to trade down 3.5% at R16.60.
The firms said they were co-operating with the authorities.
Tiger Brands said it had suspended operations at both Enterprise manufacturing facilities in Polokwane and Germiston.
RCL said it was recalling its polony products even though test results were still pending. The firm said on Sunday it had suspended all production of its polony brand.
Health authorities have not said when they could conclude the tests on RCL Foods. It was not immediately clear why it took authorities more than a year to identify the source of listeria. Dozens of customers who had bought the items lined up outside a Tiger Brands outlet, carrying bags of cold meat products and demanding refunds.
“I already packed my kids lunch with this product, so I’m shocked,” said Tshepo Makhura, a 37-year-old call centre agent.
“I lost trust with Enterprise. I’ll be scared even if they say this problem is solved. I would rather go back to peanut butter and jam.”
Deline Smith, a 57-year-old housewife with three full bags, said: “I don’t even want the money back; they can just take it, I want to just remove it… I hope my grandchildren are going to be okay because we gave them food over the weekend from these parcels.”
Analysts said profits were unlikely to be hit hard because the recalls did not affect the two firms’ largest divisions.
Tiger Brands makes consumer goods, ranging from rice, breakfast cereals, bread, juices, canned meats and vegetables and energy drinks.