Blog: Repurcussions of botulism scare continue to impact Fonterra
Hannah Abdulla | 27 March 2014
It's been a tough last year for Fonterra and the repurcussions don't appear to have stopped. The firm reported a 53% loss in profits for the first six months of its financial year yesterday attributing the losses to margins being squeezed by higher commodity prices.
Following the legal tie-up with Danone over last year's Botulism scare, Fonterra has set aside NZ$11m (US$9.5m) in expected legal fees. Earlier this month Fonterra accepted four counts of food safety violations related to the incident which saw Danone axe its supply contract with the firm.
According to Danone, the recall of the concentrated whey powder last August resulted in lost sales of EUR350m (US$476m).
Fonterra said in the report it was "working through the details of Danone's claim" and would "vigorously defend its position".
The $11m it has provided it says represents "the maximum contractual liability to Danone", though it is lower than the NZ$14m provision it originally announced at the end of last year.
Trace One and SGS Supply Chain Solutions have developed a social network platform they believe will improve product safety globally by enabling more effective real-time communication in the supply cha...
3D design company Lehrmitt Design Studios is offering designs using 3D printing technologies that, it says, can add an "artist's touch" to assembly line chocolate. ...
Nestle and Lactalis' chilled desserts venture has rolled out a reduced-sugar variant of its Munch Bunch fromage frais range in the UK and Ireland. ...
- Why US foodservice could offer route to growth
- Foodservice in the US - what the analysts say
- How can brands capitalise in US foodservice?
- Briefing: 11 menu trends shaping US foodservice
- Why "simple" and "real" will be industry buzzwords
- UPDATE: Mondelez confirms Irish plant changes
- Thorntons sales, profits fall
- Saputo's Warrnambool to buy Lion's cheese arm
- Greenyard Foods, Univeg, Peatinvest mulling merger
- WhiteWave launches "Australian-style" yoghurt