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.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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