Tiger Brands Ltd. shares fell the most in more than two years after Africa’s biggest listed foodmaker recalled a range of baby-powder products that may have been tainted by asbestos.
(Bloomberg) — Tiger Brands Ltd. shares fell the most in more than two years after Africa’s biggest listed foodmaker 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. Customers are urged to return powder already purchased to their nearest supermarket, Tiger Brands said.
The stock slumped as much as 10% in Johannesburg, 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 baby-powder incident is not expected to be material to financial results, the company said.
Tiger Brands also recalled about 20 million cans of vegetables last year over leaking concerns.
(Updates with listeriosis outbreak fro the fourth paragraph)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
