As a result of the ongoing civil unrest, looting and vandalism in Kwa-Zulu Natal and parts of Gauteng, JSE-listed food manufacturer Tiger Brands estimates the costs of the loss of stock to be in excess of R150-million.

A number of its sites in KwaZulu-Natal have been affected by acts of looting and vandalism resulting in damage to its rice, snacks and treats operations and, while the situation in the province remains volatile, the company says further risk to its other facilities in the area persists.

The company has, as yet, been unable to determine the exact extent of damage to property and infrastructure and the loss of profit owing to business interruption is still being quantified.

In a statement, Tiger Brands states that its immediate priority is the wellbeing and safety of its employees, which has prompted it to suspend operations at affected locations where its risk assessments concluded that it was prudent to do so.

As such, the company states that all its KwaZulu-Natal operations remain temporarily closed.

The company’s bakery operations and the distribution of bread have been suspended in the province, while deliveries of bread in Gauteng have been affected by challenges in accessing certain areas, as well as the closure of customer stores.

In terms of rebuilding its affected businesses, Tiger Brands reports 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,” the company states.

However, security of supply to consumers is subject to the reopening of key transport routes and access to the operations of Tiger Brands’ retail and wholesale partners.

In this regard, the company is engaging with government and supports efforts by law enforcement agencies to restore calm, reopen key distribution routes and create a safe environment for the resumption of normal business activity.