Baby powder recall to cost up to R25m
Tiger Brands expects that the one-off costs of the recall of its baby powder will be R20m-R25m, it said in a trading statement yesterday for its year to end-September 2022.
BusinessLIVE reports that the bulk of the amount will be affected stock that will be written off.
Tiger Brands earlier this month said it would recall Purity Essentials baby powder that traces of asbestos may have contaminated.
It was the latest product safety concern for the group still fighting a class-action lawsuit related to a listeria outbreak traced to products from its meat-processing plant in 2018.
More than 200 people died during the outbreak.
The batch of raw material with trace levels of asbestos did not meet the company’s strict quality and safety standards and the company is working with retail and wholesale customers to remove all affected items from the shelves, it said earlier.
Traces of asbestos were detected in test samples from a batch of pharmaceutical-grade talc powder which is used as a raw material for making finished powder products.
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