Tiger Brands takes massive financial hit on defective cans

Dylan Bettencourt

Tiger Brands is recalling about 20 million of KOO and Hugo’s canned vegetables and beans because of a possible leak in their cans.

Reports indicate that the leak in the cans is apparently caused by a deficient side seam weld that causes the product to leak. 

The manufacturing error could cost Tiger, South Africa’s largest food manufacturer around R650 million, about 9% of their annual profit. The stock market’s response was swift and brutal: Tiger Brands dropped 6,40% on the stock exchange on Monday morning. 

The defect was only discovered in May this year when the company discovered 18 defective cans at one of their facilities after many of them had been released to the trade.

In a statement, Tiger Brands said the leak presents a risk of secondary microbial contamination after the canned products are dispatched into the marketplace. 

“Where such contamination occurs, it will present a low probability of illness and injury if the contaminated product is consumed,” the company said.

The statement said the majority of the products they produced between 1 May 2019 to 5 May 2021 have been affected. 

Several other KOO and Hugo products have been recalled; the full list can be found here. 

Image source: @TameTimes

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