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EDITORIAL: Payouts without apologies

Legalistic twist in Tiger Brands’ proposed settlement for listeria class action lawsuit raises questions over corporate accountability

A sign outside Tiger Brands’ Albany Bakery in Belville, Cape Town. Picture: ESA ALEXANDER
A sign outside Tiger Brands’ Albany Bakery in Belville, Cape Town. Picture: ESA ALEXANDER

Tiger Brands is finally reaching for its chequebook after a deadly listeriosis outbreak nearly seven years ago. In 2017/18, the country suffered the world’s worst recorded listeria epidemic — more than 1,000 people fell ill and about 218 died after eating contaminated processed meats.

The outbreak was traced to “polony” deli meats from Tiger Brands’ factory in Polokwane. Yet at the time, Tiger Brands’ leadership was defiant: then-CEO Lawrence MacDougall claimed there was no direct link between the deaths and the company’s products. Fast-forward to 2025, and Tiger Brands has offered a settlement in the class action lawsuit brought by the victims’ families. 

It’s a long-awaited step towards justice, but one delivered with a carefully legalistic twist that raises questions about the true extent of corporate accountability on display. 

The listeriosis crisis left a scar on SA’s public health record. Genetic analysis by the National Institute for Communicable Diseases eventually drew a direct line from victims to Tiger Brands’ factory, identifying a strain (ST6) of listeria in hundreds of patient samples and matching it to the Polokwane plant. With evidence mounting, public outrage grew. Tiger Brands, whose products are pantry staples, faced a class action lawsuit. But years of legal wrangling and corporate denials ensued.

Only now, seven years later, has the company come forward with a settlement offer. The belated offer underlines how slowly the wheels of corporate reckoning can turn when a company’s culpability is at stake. 

Tiger Brands’ proposed settlement comes with a big asterisk: it has been made “without admission of liability”, preserving the company’s stance that this is damage control, not a confession of fault. The deal, facilitated by Tiger Brands’ insurer QBE, promises to compensate certain victims for proven damages under consumer protection laws. In plain terms, the company’s reinsurer is picking up the tab, insulating Tiger Brands’ finances from the full effect.

Tellingly, the details of the payout are shrouded in secrecy, an opacity that means Tiger Brands can settle claims behind closed doors, avoiding a transparent price tag on each life lost. It’s accountability on the company’s terms: a settlement cheque without apology. Even so, Tiger Brands’ share price rose nearly 2% on the news, signalling that the market views this as prudent damage containment. Paying to make a problem go away is, unfortunately, often cheaper than a protracted court battle that lays corporate negligence bare.

Beyond the courtroom manoeuvres, this saga carries sobering lessons for public health. The outbreak exposed glaring gaps in food safety oversight and crisis response. It took authorities more than a year to pinpoint the source. In the aftermath, reforms were inevitable. Listeriosis was made a notifiable disease in SA, meaning cases must be reported to health authorities for swift action. Regulators tightened hygiene rules for food processing: plants face more frequent testing and stricter requirements for monitoring listeria contamination. 

No legal settlement can bring back lives lost. The real win is averting the next disaster through vigilance and improved standards

Tiger Brands’ listeria nightmare is a cautionary tale with broad implications for the food industry. For one thing, it underlines that skimping on safety protocols can carry catastrophic human and financial costs. The brand damage from being known as the source of a deadly outbreak cannot be easily quantified. Adding the potential legal costs and the cost of recalling products, it amounts to a sum that could wipe out several years’ profits. For another, the case is important for corporate accountability. Class action lawsuits against big firms are rare and Tiger Brands’ reluctant payout sets a precedent that consumer victims can band together and force even a titan to compensate. 

The settlement is undeniably significant. The company may hope to turn the page, but the aftertaste lingers. The true test of its contrition will be whether it, and its peers, double down on safety reforms before another tragedy forces their hand. In the court of public opinion, as much as in law, an outbreak of corporate soul-searching is long overdue. 

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