The future is looking brighter for Tiger Brands, as the company re-opens its processing facility.
Tiger Brands has re-opened its Germiston processing facility, which it shut after the food producer was implicated in the world’s largest outbreak of listeria, which killed more that 200 people.
When listeriosis broke out at the beginning of the year, a factory belonging to Enterprise Foods, a division of Tiger Brands, was identified as one of the sources. Class action claims concluded in May cost the company R365 million, as well as another R50 million per month.
In their half-year report released in March, Tiger Brands announced that the deadly outbreak cut their after-tax profit by more than a tenth and a four percent drop in revenue to R15.7 billion.
It also resulted in their shares plummeting on the JSE.
The reopening of the processing facility may herald a more positive outlook for Tiger Brands’ future.
Tiger Brands’ CEO Lawrence Mac Dougall said:
“With the safety standards for our Germiston factory now re-affirmed by government, we have been given the green light to reopen the facility.”
