European yeast company Bakels-LeSaffre is suing Australian food company Burns Philp over a yeast supply contract to Goodman Fielder bakeries.
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Bakels-LeSaffre, a joint venture between French-based yeast giant LeSaffre and Swiss ingredients firm Bakels, alleges that Burns Philp committed breach of contract when it told Bakels-LeSaffre that it no longer had exclusive rights to supply eight of Goodman Fielder’s bakeries in Australia. Bakels-LeSaffre had a contract with Goodman Fielder to the end of 2004, and has started legal proceedings in an effort to prevent Goodman from ending the supply agreement early, reported the Australian Financial Review.
When Burns Philp, itself a yeast and ingredients company, acquired Goodman Fielder earlier this year, the company became Australia’s largest baker. Since the merger, Goodman Fielder has closed eight of its 33 bakeries in an effort to reduce operating costs.
