RSS   Newsletter   Contact   Advertise with us

Danone to bring Fonterra to court

Staff writer ▼ | January 10, 2014
Danone said it was canceling its supply contract with Fonterra and starting court proceedings in the New Zealand High Court, as well as arbitration proceedings in Singapore "to bring all facts to light and to obtain compensation for the harm it has suffered" from the month-long scare.
Fonterra
FonterraDanone said it was canceling its supply contract with Fonterra and starting court proceedings in the New Zealand High Court, as well as arbitration proceedings in Singapore "to bring all facts to light and to obtain compensation for the harm it has suffered" from the month-long scare.


Fonterra launched a global recall in August after batches of whey protein concentrate were wrongly found to be contaminated with a botulism causing bacterium, forcing Danone's Australasian subsidiary, Nutricia, to recall batches of its own Karicare infant formula. The recall reportedly cost Danone 350 million euros ($475.16 million).

"This affair illustrates serious failings on Fonterra's part in applying the quality standards required in the food industry. Danone is terminating its existing supply contract with Fonterra and making any further collaboration contingent on a commitment by its supplier to full transparency and compliance with the cutting-edge food safety procedures applied to all products supplied to Danone," Danone said a statement.

Fonterra issued a statement saying it had been in ongoing commercial discussions with Danone and was "disappointed that they have resulted in legal action."

"Fonterra will now work through the detail of Danone's claims. It continues to be confident in its position and will vigorously defend any proceedings. Fonterra stands by its track record of having world-class food safety and quality standards, quality systems, and robust testing regimes across all its manufacturing facilities," said the statement.


 

MORE INSIDE POST