Fonterra confirms dispute resolution process with Danone
New Zealand-based dairy company Fonterra has confirmed that it is in a dispute resolution process with French dairy company Danone, following the whey protein concentrate precautionary recall initiated in August 2013 involving whey protein products from whey protein produced by Fonterra. One of the customers seriously affected by the recall was Danone in relation to its infant formula range.
Fonterra said the discussions with Danone had been confidential with a view to reaching a “mutually acceptable” commercial outcome. However, some aspects of the discussions were made public in the media on 2 October 2013.
Fonterra confirmed that the discussions remained ongoing, but strongly denied any legal liability to Danone in relation to the recall.
Australian Food News reported in August 2013 that Fonterra’s Managing Director of New Zealand Milk Products had resigned from his role and two senior managers had been placed on leave immediately following the recall incident with the whey protein.