Tiger Brands Offers Settlement in Deadly 2017-18 Listeriosis Outbreak

South Africa’s biggest food maker, Tiger Brands, is stepping up to settle claims from victims of the world’s deadliest listeriosis outbreak, which hit the country hard in 2017-18. The outbreak, linked to contaminated polony and vienna sausages from their Polokwane factory, killed 218 people and sickened over 1,000. Seven years later, on May 12, 2025, the company announced a settlement offer, a big move toward closing a painful chapter for many families.

What Happened?

Back in January 2017, a nasty bacteria called Listeria monocytogenes (strain ST6) spread through processed meats from Tiger Brands’ Enterprise Foods factory in Polokwane, with distribution from its Germiston site. The outbreak, which ran until September 2018, hit vulnerable groups like newborns, pregnant women, and the elderly the hardest, causing meningitis and brain damage in some survivors. The National Institute for Communicable Diseases (NICD), led by Health Minister Aaron Motsoaledi, traced the outbreak to the factory, with DNA evidence showing 382 of 403 samples were nearly identical, pointing to a single source.

READ MORE: USGBC Unveils 2025 LEED for Cities Cohort to Boost Urban Sustainability

The Settlement Offer

Tiger Brands, backed by its insurer QBE Insurance Group, offered to pay victims on April 25, 2025, without admitting fault. The deal covers three groups: people who got sick from ST6 listeriosis (or whose moms did), those who lost breadwinners to the disease, and guardians of kids who fell ill. The offer promises full compensation for “proven or agreed” damages under the Consumer Protection Act, but details like how much and who gets what are still being worked out. To keep things private, no payment amounts are public.

“This is a huge step,” said Nilesthra Padayachee from Richard Spoor Inc. Attorneys, one of two law firms (along with LHL Attorneys) fighting for victims. “We’re hoping this leads to a deal for all class members.” The offer follows interim payments in February 2025 for urgent medical needs, showing Tiger Brands is trying to make things right, said CEO Tjaart Kruger.

Why It’s a Big Deal?

This is the first settlement offer since the class-action lawsuit got the green light in December 2018. Back then, Tiger Brands planned to fight the case, denying clear evidence linked them to the outbreak. But the NICD’s rock-solid investigation, backed by global experts and even Tiger Brands’ own team, made it hard to dodge. The plaintiffs’ lawyers see the offer as an “effective admission of liability,” though Tiger Brands insists it’s not. The outbreak cost the company R1.4 billion in revenue and a 7% stock drop, plus a hit to its reputation after years of scandals, like a 2007 bread price-fixing fine.

What’s Next?

The settlement isn’t final yet. Lawyers need to present it to qualifying victims, figure out damage amounts, and get High Court approval to ensure it’s fair—a process that could take weeks or months. The class action is still in its first stage, where courts decide if Tiger Brands is legally responsible. If they are, stage two will sort out who gets paid and how much. Many victims haven’t been found, so the NICD and Health Department are helping track them down.

The outbreak exposed big gaps in food safety, leading to stricter rules, like making listeriosis a notifiable disease and requiring regular factory tests.

“This shows why food safety matters,” the Health Department said, noting listeria’s spread through soil, water, and food like polony, a cheap staple for many low-income families.

Why It Matters?

For families like Theto Ngobeni’s, who faced lifelong medical costs after listeriosis caused her hydrocephalus, this offer brings hope but no quick fix. With 83% of consumers demanding corporate accountability, per a 2024 PwC survey, Tiger Brands’ move could set a precedent for how companies handle crises. The case also highlights South Africa’s growing muscle in class-action lawsuits, following successes like the R5 billion silicosis settlement for miners.

As the court reviews the deal, the focus is on justice for victims and ensuring such a tragedy—linked to a preventable bacteria—never happens again.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.