| Mon 30 Jun 2003, 8:59 | | Registration number 1968/008034/06) Share code: PI |
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Registration number 1968/008034/06) Share code: PIK ISIN code: ZAE000005443 ("the Company") It is with the deepest regret that I write this communication to all of Pick "n Pay"s customers, staff, investors and the people of South Africa. For approximately seven weeks, Pick "n Pay has been the victim of an extortion demand, with various actions and threats being leveled against our customers and the Company. From the outset, your safety has been of number one importance before all else. We have received advice and guidance from the leading local and international experts and authorities who deal with these issues at a global level. A decision was taken to continue dialogue and contact on the basic terms and conditions as stipulated by the extortionist to try and achieve a controlled outcome. Of paramount importance, to ensure your ongoing safety and awareness, it is vital that the basic facts and status quo are communicated to you directly in order to balance your right and need to know against the reality of rumour, innuendo and sensationalism. The Facts On Tuesday 13 May, a parcel was received by us, sent by insured post, containing three items (one x 120g No Name Brand Portugese Sardines; one x Pick "n Pay Choice Garlic Flakes Bottle; one x Lucky Star Pilchards in Chilli 155g). Accompanying this parcel was a letter informing us that these items had been poisoned and that unless the instructions were followed, similar items would be placed in the store. Against a background of a clear statement from the extortionist that no harm would come to our consumers, we commenced the contact with him on his basic terms and conditions, taking into account the advice that we had received. On Tuesday 10 June, we received a 20-second phone call from the extortionist informing us of the exact location of a can of contaminated No Name Brand Portuguese Sardines 120g that had been placed on the shelf in our Bokbsurg store and clearly marked as "poisoned, do not consume contact Pick "n Pay". Within minutes of the phone call, the General Manager of our store located the item and removed it for forensic analysis. A letter subsequently received in the post informed us of three items placed in our stores and we immediately implemented a search of all stores, which yielded no further marked items. Up until Friday June 27, we had every reason to believe that the extortionist posed no threat to the public, and the strong advice we were given was that any public announcement would simply provoke the extortionist. Our intensive investigations continued, but contact with the extortionist became more sporadic but still on his basic terms and conditions. On Friday evening, June 27, a consumer phoned the Pick "n Pay Call Centre and informed us that she had consumed a sardine from a can of No Name Portuguese Sardines bought at the Princess Crossing Store on the West Rand, and upon experiencing a "strange" taste, she had read the packaging which had been clearly marked with a koki pen as "Poisonous, do not consume, contact Pick "n Pay immediately". Upon being contacted, we arranged immediate hospitalisation and informed the doctor and medical staff concerned, as well as her immediate family, of the exact circumstances in order that correct preventive medical action could be taken. We are relieved to be able to report that this morning, our customer would appear to have suffered no side effects from eating this product other than the emotional stress that has been caused to her and her family, which we deeply regret. The contents of this tin are currently being analysed. Since this first started some weeks back, we have markedly stepped up security and surveillance at all our stores. We have at all times acted with your interests first and foremost. Against this latest development and changed modus operandi of the extortionist, we feel that we need to communicate with you clearly and concisely the basic facts as stated above, as well as the way forward. While these activities have been limited to two stores in Gauteng, we would ask that all customers in Gauteng immediately return these three items purchased at any Pick "n Pay store in Gauteng, for a full credit: 120g No Name Brand Portugese Sardines: barcode 600 1007 007 263 Pick "n Pay Choice Garlic Flakes Bottle: barcode 600 1007 096 441 Lucky Star Pilchards in Chilli 155g: barcode 501 082 1132 007 I would like to say again how much we regret this unfortunate chain of events. While what has happened is clearly beyond our control, we are absolutely committed to complete transparency with all involved in the Pick "n Pay community. We know that there will be conjecture or speculation in the coming days, and we will do everything we can to minimise this as far as possible. In the interests of clear and factual information to all our people, all future contact on this issue will be with me directly, as the Chief Executive Officer of the company. We have taken the decision to communicate openly with all of you, very carefully. We believe that consistent with who we are as a company and what our value systems are, our customers, their safety, and ultimately their trust in us come first, no matter what. We have no reason to believe that there is any real danger to any of our customers. For over 35 years, we have been a responsible and compassionate corporate citizen, serving the needs of our customers, employees, shareholders and friends. We provide direct employment for over 30 000 people and take our responsibility to South Africa very seriously. We have provided as much information as we can to ensure your safety but without compromising the investigation. We will be providing updates to the public as and when more information becomes available. Concerned customers may contact the Pick "n Pay Customer Careline on 080011 22 88. Operating hours have been extended to 24 hours a day, seven days a week.
