Big step forward in Tiger Brands listeriosis case

Tiger Brands has provided an update on the interim relief it intends to offer certain claimants in the company’s class action Listeriosis case.

South Africa’s 2017/18 listeriosis outbreak was the largest recorded in history, with over 1,000 infections and 218 deaths. 

The National Institute for Communicable Diseases (NICD) linked the outbreak to contaminated ready-to-eat processed meat products from Tiger Brands’ Enterprise Foods facility in Polokwane.

Therefore, Tiger Brands faces a class action lawsuit from individuals affected by this listeriosis outbreak. The case has been heard in the Gauteng High Court and the Supreme Court of Appeal.

The High Court initially certified the class action lawsuit, allowing the case to proceed. It has also heard various motions and applications related to the case, such as those involving subpoenas and the discovery of evidence. 

However, in February 2022, the Supreme Court of Appeal heard an appeal related to subpoenas issued by Tiger Brands to obtain information from the NICD and other parties. 

The SCA ruled in Tiger Brands’ favour, allowing the company to access crucial information for the case. Therefore, the case is still ongoing

However, in 2024, Tiger Brands announced that it had reached an agreement with the plaintiffs’ attorneys to provide interim relief to certain claimants with urgent needs by way of interim advance payments.

Tiger Brands’ lead reinsurer, QBE Insurance Group, authorised the insurers’ attorneys to make settlement offers to specific named persons.

These people are members of the following classes of claimants who suffered damage as a result of listeriosis caused by genotype L1-SL6-ST6-CT4148 of Listeria monocytogenes (ST6):

• Claimants who contracted (or whose mothers contracted) listeriosis caused by ST6
• Claimants whose legal breadwinners, on whom they were legally dependent, died of listeriosis caused by ST6
• Claimants whose legal dependents, who were in their care, and who contracted listeriosis caused by ST6
• The settlement offer, which was made on 25 April 2025, includes an undertaking to pay the claimants’ proven or agreed compensatory damages in terms of section 61 of the Consumer Protection Act 68 of 2008

Tiger Brand specified that the offer is subject to certain conditions and has been made without admission of liability and in full and final settlement of the claims of the specific named claimants.

Significant step in the case

Tiger Brands explained that this settlement offer represents a significant step towards the resolution of the listeriosis litigation.

“Tiger Brands and the insurers’ attorneys have commenced engagements with the plaintiffs’ attorneys to ensure timely implementation of the offer and settlement of proven or agreed compensatory damages of the participating claimants as soon as possible,” it said.

The company explained that the next step to give effect to the settlement offer is for the offer to be conveyed by the plaintiffs’ attorneys to those claimants who qualify. 

Then, the damages of those claimants who accept the offer will need to be quantified. 

“It is expected that the process for the offer to be presented to these qualifying claimants will take several weeks, and that arrangements to quantify their damages will follow over the ensuing weeks,” the company said.

“The class action, which is being managed in two stages, is still at the first stage, during which liability is to be determined by the court.” 

“Only if Tiger Brands is found to be liable will the issue of causation arise, in the second stage of the class action, as well as an assessment of compensation payable to qualifying claimants for damages suffered.”

Tiger Brands confirmed that it has adequate product liability insurance cover for a group of its size.

Tiger Brands earnings skyrocket

In the same announcement as this update in the Listeriosis case, Tiger Brands provided a trading update to shareholders for the six months ended 31 March 2025.

Tiger Brands said its results for the first half of the 2025 financial year are expected to display continued momentum in executing its turnaround strategy.

The company’s earnings per share (EPS) from total operations are expected to be between 45% and 55% higher than the 892 cents reported in H1 2024.

EPS from continuing operations is expected to be between 70% and 80% higher than the comparable 847 cents in H1 2024.

Tiger Brands’ headline earnings per share (HEPS) from total operations is expected to be between 15% and 25% higher than the 808 cents reported in H1 2024.

HEPS from continuing operations for the six months ended 31 March 2025 is expected to be between 30% and 40% higher than the comparable 763 cents in H1 2024.

“The expected difference between continuing EPS and HEPS largely relates to profits on the sale of associate Carozzi and the Baby Wellbeing division,” the company explained. 

Tiger Brands disposed of its stake in Carozzi and Baby Wellbeing as part of its portfolio optimisation, which is expected to drive earnings growth.

Tiger Brands’ results for the six months ended 31 March 2025 are expected to be released on or about 28 May 2025.