| Mon 4 Aug 2003, 9:42 | | ANNOUNCEMENT BY SEAN SUMMERS, CEO |
|
Release Date: 04/08/2003 07:52:51 Code(s): PIK PWK
Pick "n Pay - ANNOUNCEMENT BY SEAN SUMMERS, CEO, PICK `N PAY STORES LIMITED
Pick "n Pay Stores Limited
Registration no: 1968/008034/06
Share code: PIK ISIN: ZAE000005443
Pick `n Pay Holdings Limited
(Registration number 1981/009610/06)
Share code: PWK ISIN code: ZAE000005724
ANNOUNCEMENT BY SEAN SUMMERS, CEO, PICK `N PAY STORES LIMITED
Forensics experts have concluded that no products consumed by any person since
an extortion attempt was made against Pick `n Pay had in fact been poisoned.
This follows comprehensive and exhaustive follow-up research and testing, taken
together with expert local and international findings from leading
toxicologists, packaging experts and food and drug organizations.
During the course of the investigation into the extortion attempt, a number of
products - including the initial three sent to Pick `n Pay"s offices by the
extortionist - were exhaustively re-tested and it has been found that no
products had been deliberately contaminated with cyanide.
The Forensic Science Laboratory of the South African Police Service and the
appointed forensic task team - led by expert in occupational and environmental
health Dr Murray Coombs - confirmed that despite the fact that initial food
tests and blood tests were above the background levels in the cases reported, it
can now be stated clearly and conclusively that none of these products had had
any cyanide added to them. Background levels are those which fall within an
acceptable natural range.
Task team leader Dr Murray Coombs has confirmed that in the first case reported
by a customer, a tin of sardines, the hole drilled in the tin by the
extortionist led to food decomposition which caused her to feel ill. Her tests
and symptoms ruled out cyanide poisoning.
For those customers who felt ill, their symptoms were not related to cyanide
from products they consumed from Pick `n Pay.
In the case of all the products reported, their own research, taken with advice
and expertise provided by the Centre for Disease Control in the US, has shown
that cyanide occurs naturally and harmlessly in thousands of foodstuffs to
varying degrees.
After a series of tests, benchmarking and comparing cyanide levels in identical
products from a variety of sources, they concluded that these levels reported in
the initial tests were not sufficient to suggest poisoning at all. In some
cases, blood levels may have been affected by nicotine consumption, or may have
simply been naturally higher than average.
Because this type of threat had never occurred in South Africa before, there was
no pre-existing research that would have enabled conclusions to be made earlier.
The work that has been done by the forensic task team and all the other
organizations involved, together with international assistance, can be said to
be `groundbreaking" in that there is now accumulated, definitive knowledge and
understanding of naturally occurring cyanide in foodstuffs and in blood in South
Africa, which at their natural levels are harmless.
The World Health Organisation and the US-based Environmental Protection Agency
have established an Acceptable Daily Intake of natural cyanide in water and
foodstuffs, and in every case reported from Pick `n Pay, levels were
substantially below these international levels, and therefore were naturally
occurring and harmless. Cyanide also occurs in air pollution, from amongst other
things, vehicle emissions.
He confirmed that cyanide also occurs naturally in the bloodstream, with levels
being affected by a number of variables, including smoking, foodstuffs,
workplace exposure, air pollution and drinking water. Cyanide does not
accumulate in the bloodstream.
Because no benchmarking of cyanide in consumer products had ever been done
before, against which these initial tests could be compared, Dr Coombs confirmed
that we were justified in being concerned and were correct to withdraw products
and have customers return them. Given that the extortionist had actually written
"Poisonous" on the tin of sardines, he believes that we took the most prudent
and responsible decision at the time.
We were obviously relieved when the SAPS Forensic Science Laboratory and other
experts led by Dr Murray Coombs confirmed that our products had not been
poisoned. Prior to our having this conclusive knowledge at our disposal, we
could not and would not gamble with our customers" safety and we had to continue
on the course of caution, testing and withdrawal. Then, as now, customer safety
is paramount.
Although we had earlier indications that some of our products were tampered with
but may not indeed have been poisoned, we did not want to change our course of
action or release the information until we were absolutely sure. Now we are.
We have been in close contact with those customers first thought to have
consumed products contaminated with cyanide and have given them all the expert
information now at our disposal. They are naturally relieved at the news and we
would like to thank them again for their understanding, support, co-operation
and encouragement.
We are also relieved that the activities of the extortionist have been confined
to two tampered products, one at our Boksburg Hyper and one at our Princess
Crossing Hyper, both in Gauteng. Neither of these products were contaminated and
no other reports have been received of any tampering anywhere in South Africa.
We will be immediately reintroducing all the product lines that had been
withdrawn to our shelves. Security will continue at our stores as a precaution
and permanent changes to security in-store have been made to ensure customer
safety.
We are enormously grateful for the high level of professionalism that has been a
hallmark of this case, from the SAPS, the forensic task team, toxicology experts
and doctors, all of whom have co-operated closely to help bring some closure to
this incident. This has taken a huge amount of professional cross-disciplinary
effort.
We are writing up and documenting a comprehensive case study for the Consumer
Goods Council of South Africa as a guide for the entire retail and manufacturing
industries.
Although the extortionist has not been caught, we strongly believe he won"t come
back and we have not heard from him in over 40 days. For all of us, it"s back to
business.
Trade at Pick `n Pay stores has been affected over the period. The area most
affected has been Gauteng, where the extortionist"s activities were thought to
have been the most significant. Notwithstanding any temporary loss of trade, the
company believes that taken together with this positive news, the company will
regain any lost custom through aggressive consumer campaigns.
Date: 04/08/2003 07:53:01 AM
Produced by the JSE SENS Department
