South Africa

Tiger Brands share price falls amid baby powder scandle

Tiger Brands shares fell the most in more than two years after Africa’s biggest listed food maker recalled a range of baby-powder products that may have been tainted by asbestos.

The company withdrew the items after trace levels of the potentially dangerous mineral were detected in samples of a raw material used in the manufacturing process, according to a statement on Wednesday.

Tiger Brands said that customers are urged to return powder already purchased to their nearest supermarket.

The stock slumped as much as 10% on the Johannesburg Stock Exchange, the most since May 2020, before paring losses to trade 4.6% lower at 10:55 a.m. local time.

The recall comes just over four years after Tiger Brands withdrew processed-meat products and closed factories following an outbreak of listeriosis that killed more than 200 people.

While that crisis led to a slump in profit, the company said that the baby-powder incident is not expected to be material to financial results.

Tiger Brands also recalled about 20 million cans of vegetables last year over leaking concerns.

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