Six years after a listeriosis outbreak that claimed more than 200 lives and left thousands more ill, Tiger Brands has announced that it will cover the medical expenses of some of the victims.
The move, aimed at those with pressing medical needs, comes even though the company has yet to be held liable by the courts.
Listeriosis is caused by listeria monocytogenes bacteria — food-borne pathogens that can cause acute illness and death. The outbreak, traced to Tiger Brands’s Enterprise Foods factory in Polokwane, affected more than 1,000 people in 2017/18 and has since led to a protracted legal battle.
Attorneys launched a class-action lawsuit on behalf of victims and their families, which has yet to go to trial.
Tiger Brands said that in the meantime it was committed to assisting affected people who were in urgent need.
The Supreme Court of Appeal in 2022 allowed the class action to proceed. Tiger Brands said it had undertaken pretrial preparations where both parties sought records from the National Institute for Communicable Diseases (NICD), which conducted the original investigation linking Tiger Brands to the outbreak.
Earlier this year the NICD provided essential data, known as FASTQ files, that detailed genetic analysis of the outbreak strain, ST6, found in multiple samples from the Polokwane plant and its products.
Further tests from institute researchers earlier this year confirmed a genetic match between the ST6 outbreak strain and samples collected from the plant, substantiating the initial findings that the bacteria originated from Tiger Brands’ facility.
“The experts’ review of the data is at an advanced stage but remains ongoing. The company’s attorneys have engaged with the plaintiffs’ attorneys with a view to agreeing on relief to qualifying individuals who have urgent medical needs, regardless of the fact that liability has not yet been determined,” Tiger Brands said.
“In addition, the legal representatives are engaging on measures to arrive at a speedier resolution of the class action overall. The company is committed to working diligently to bring the listeriosis class action to a close as speedily as possible.”
The company said it had product liability insurance cover appropriate for a group of its size. “Coverage is subject to the terms and limits of the policy.”
In the same statement the company said it expected full-year headline earnings for the year to end-September to increase as much as 5% as it continued to build on a turnaround reported in the first half.
The top-line performance was marginally ahead of the previous year’s, reflecting a challenging environment, while in certain instances volume declines reflected deliberate pricing correction initiatives previously implemented, Tiger Brands said.
Headline earnings per share from total operations for the year to end-September are forecast to be 52c-87c higher than the 1,734.7c reported a year ago, an increase of 3%-5%.
Gross and naked margins were expected to reflect a modest recovery on the previous year’s levels, due to cost-savings initiatives, which resulted in a marginal improvement in group operating income.
“With the new operating model fully implemented, the group’s performance notably improved in the second half, with the exception of the home and personal care and the deciduous fruit business,” the company said.
The performance of the home and personal care’s segment was affected by competition in the second half but still “delivered a credible full-year performance excluding impact of disposals”. The deciduous fruit business performance was hampered by global fruit purée pricing in the second half.
The shares closed 0.31% weaker at R238.65 on the JSE on Wednesday, valuing the company at just over R43bn. With Tamar Kahn
Update: October 30 2024
This story includes new information on the payment of medical expenses for listeriosis victims and their families.
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