Wednesday, 10 March 2021 07:55

Fonterra's trans-Tasman dairy trademark stoush finally over

Written by  Sudesh Kissun
Fonterra's battle with Bega Cheese over trademark ended last month. Fonterra's battle with Bega Cheese over trademark ended last month.

A long-running trademark dispute between Fonterra and Australian dairy giant Bega Cheese has ended with the court last month rejecting both parties’ claims.

The Victorian Supreme Court ruling means Bega Cheese can continue selling cheeses and peanut butter under the Bega brand. It rejected Fonterra’s claim to an exclusive trademark licence for the brand within Australia.

The court rejected a counterclaim from Bega to terminate the trademark licence agreement with Fonterra for alleged breaches.

Fonterra and its predecessor, the New Zealand Dairy Board, have had long trading ties with Bega Cheese. The original agreement was signed in 1983.

The current agreement, signed in 2001, gives Fonterra long-term licence to use the Bega trademark on butter and cheese – blocks, slices and stringers.

Between 2013 and 2015, Fonterra held a 9% stake in the listed cheese maker.

The stoush started in 2017 when Bega Cheese bought the Kraft branded cheese and peanut butter business from Mondelez International. Subsequently, the Australian dairy manufacturer replaced the Kraft logo on these products with its own Bega logo.

Fonterra initiated court action, arguing that it had exclusive rights to the Bega brand. The court disagreed.

In its counterclaim, Bega argued that Fonterra had breached a contractual obligation to market and promote the Bega brand. However, the court found there was no obligation for Fonterra to do so.

Bega also contended that Fonterra breached an agreement between the two companies by misrepresenting to consumers that all cheese in Bega products were made in the Bega Valley. That claim was also dismissed.

Fonterra Australia managing director Rene Dedoncker told Rural News that it was pleased with the decision allowing the NZ co-operative to retain the exclusive licence for the Bega cheese brand for cheese and butter.

“Since the 1980s, Fonterra and its predecessor Bonlac have nurtured and built the Bega brand, and supported Bega Cheese Limited to grow and provide good returns back to its farmers, shareholders and community,” he says. 

“We will continue to invest in the Bega brand because we believe in it.”

Dedoncker told Rural News that while disappointed with the decision on the trademark claim, Fonterra is confident that it can work together with Bega Cheese Limited to continue to grow the value of the brand.

In a statement to the Australian Stock Exchange, Bega executive chairman Barry Irvin said his company is now entitled to use the Bega trademark on products outside the scope of the agreement with Fonterra.

“Since its acquisition of the Mondelez grocery business in 2017, Bega Cheese has sold Bega branded peanut butter products.

“Bega Cheese is pleased that its right to use its brand on these products has been confirmed by the court.”

More like this

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

National

Machinery & Products

Farmer-led group buys Novag

While the name and technology remain unchanged and new machines will continue to carry the Novag name, all the assets,…

Buhler name to go

Shareholders at a special meeting have approved a proposed deal that will see Buhler Industries, the publicly traded Versatile and…

» Latest Print Issues Online

The Hound

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…

Own goal

OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter