20 million KOO and Hugo's canned products to be recalled

Tiger Brands, South Africa's biggest food manufacturer, announced on Monday that it is immediately recalling about 20 million KOO and Hugo's canned vegetable products over safety concerns due to potentially defective cans. 

This amounts to a recall of 9% of annual production and the final impact is estimated to amount to up to R650 million. Tiger Brand's share price initially dropped 6.40% after the announcement on Monday morning. 

The issue with the cans, which is a deficient side seam weld that could cause the cans to leak, was initially discovered in May this year with 18 cans at one of Tiger Brand's facilities. The cans came from a supplier. While that batch and several others weren't released for trade, a probe determined that some cans from a defective batch did. 

It did a test and out of 287,040 cans inspected after a transport and handling test, a side seam leak had developed in two cans. This prompted the recall.

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