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.
Today (23 December) is just-food's last day before closing for Christmas. We'll return, raring to go on Tuesday 3 January - but of course there's been plenty of top-notch content that has gone live in...
The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...
An update on Amazon's plans for the grocery sector. The usually reticent retailer has this week poured cold water on claims it has plans for 2,000 physical grocery stores....
- just-food 2017 Survey - your thoughts on growth
- 2017 - what will shape the UK food sector?
- Food market in 2017: need-to-know US trends
- Food market in 2017: big foodservice trends
- Could BRF's Turkey move pave way for OneFoods IPO?
- Ferrero insists Nutella not pulled from shelves
- UK's Bakkavor plays down IPO "speculation"
- Dairy giant Muller appoints new CFO, COO
- PepsiCo launches Walkers Mediterranean in UK
- Kellogg announces new "nutritious" line-up