Tiger Brands, the owner of household brands including Koo, Albany Bread, and Tastic, says that incidents of civil unrest, widespread looting, and vandalism in Kwa-Zulu Natal (KZN) and parts of Gauteng have had a material impact on its operations.
The group said in a statement on Thursday (15 July), that a number of its sites in KZN, in particular, have been impacted, resulting in damage to its rice and snacks & treats divisions.
“In relation to the affected sites, the extent of damage to property and infrastructure is subject to our ability to safely access the affected properties and is still to be determined.
“It is currently estimated that the loss of stock is in excess of R150 million. The loss of profit due to business interruption is still being quantified. The situation in KZN remains volatile, presenting a further risk to other Tiger Brands facilities in the area.”
The group said that it has suspended bakery operations including the distribution of bread in the KZN region, while deliveries of bread in Gauteng have been affected by challenges in accessing certain areas and the closure of customer stores, the group said.
“Tiger Brands’ immediate priority is the well-being and safety of its employees,” it said. “Consequently, we have suspended operations at affected locations where our risk assessments concluded that it was prudent to do so and temporarily closed all our operations in KZN.”
The company stressed to shareholders that it has appropriate insurance cover and has notified its insurers accordingly.
“As the largest food manufacturer in the country, we are working closely with our supply partners to ensure ongoing production at our operations.
“However, security of supply to consumers is subject to the re-opening of key transport routes and access to the operations of our retail and wholesale partners,” it said.