Friday, 01 December 2017 13:39

Danone awarded damages of $183m from Fonterra

Written by Rural News Group

font size decrease font size increase font size
Print
Email

Fonterra CEO Theo Spierings.

Danone has been awarded damages from Fonterra Co-operative Group totaling $183 million – fall-out from Fonterra’s product recall of 2013.

Fonterra has confirmed the amount, but is not yet able to comment on the full financial implications for the co-operative. Earlier today it requested an immediate trading halt to be applied to their securities on the ASX, the NZX and the Fonterra Shareholders Market to give it time to consider the impending decision.

The damages have been awarded by the arbitration tribunal considering a $980 million damages claim made against the cooperative by Danone. The Danone claim followed Fonterra’s 2013 whey protein concentrate precautionary recall.

Fonterra CEO Theo Spierings said the co-operative expected to make a market announcement in relation to the Danone arbitration decision as soon as possible after the decision is received.

“Fonterra remains in a strong financial position and any damages award will not affect our ability to operate. We will share further details with the market, our farmers and staff as soon as practical,” he said.

Danone has released a statement saying it welcomes this arbitration decision “as a guarantee that the lessons from the crisis will not be forgotten”.

More like this

Fonterra Expands China Foodservice Business with New Anchor Essence Cream

Fonterra is strengthening its foodservice presence in China with the launch of a new cream for professional bakeries at Bakery China 2026 in Shanghai.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Fonterra Opens 2026/27 Milk Price Forecast At $9.75kgMS

For the third season in a row, Fonterra farmers are in for a farmgate milk price near $10/kgMS.

Fonterra Lifts FY26 Earnings Forecast After Strong Q3 Performance

Fonterra has lifted and narrowed its full year forecast earnings range to 60-70 cents per share after a strong quarter, supported by robust milk production, strong shipment volumes and continued demand across its Ingredients and Foodservice businesses.