Australian dairy giant Bonlac Foods has said it is being sued by UK-based confectionery and soft drinks giant Cadbury Schweppes for A$41m (US$31.1m).

Bonlac said the proceedings relate to alleged breaches of agreements in connection with the negotiation and sale of Bonlac Foods’s Wave brand to Cadbury Schweppes in 2000-2001 and the associated supply by Bonlac of Ultra Heat Treated milk.

Bonlac said the claims are without merit and that it will vigorously defend itself, reported ABC News Online.