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.
The UK is enjoying its annual spring bank holiday on Monday (30 May)....
The online retail behemoth is again causing chatter throughout the sector, this time amid speculation it is set to launch more private-label products. ...
Talking with our readers, a common problem among them is their battle to keep tabs on the changes to regulations in China. And the recent moves Beijing has made to revamp its rules around e-commerce h...
Rumours Chinese pork giant WH Group is eyeing acquisitions, particularly in the US, have surfaced....
- Danone's global push for Danonino – interview
- How Hormel Foods can benefit from Justin's
- RTRS looks for systemic solutions to progress
- Tackling infant formula fraud in China
- The balancing act at Amy's Kitchen - interview
- Nestle sets new savings target
- Premier takes control of powders JV Knighton
- Wilmar, Adani and Ruchi Soya announce India JV
- TreeHouse rationalises production network
- Danish Crown profits slide in "tough" market