Friday, 01 December 2017 13:39

Danone awarded damages of $183m from Fonterra

font size decrease font size increase font size
Print
Email

Fonterra CEO Theo Spierings.

Danone has been awarded damages from Fonterra Co-operative Group totaling $183 million – fall-out from Fonterra’s product recall of 2013.

Fonterra has confirmed the amount, but is not yet able to comment on the full financial implications for the co-operative. Earlier today it requested an immediate trading halt to be applied to their securities on the ASX, the NZX and the Fonterra Shareholders Market to give it time to consider the impending decision.

The damages have been awarded by the arbitration tribunal considering a $980 million damages claim made against the cooperative by Danone. The Danone claim followed Fonterra’s 2013 whey protein concentrate precautionary recall.

Fonterra CEO Theo Spierings said the co-operative expected to make a market announcement in relation to the Danone arbitration decision as soon as possible after the decision is received.

“Fonterra remains in a strong financial position and any damages award will not affect our ability to operate. We will share further details with the market, our farmers and staff as soon as practical,” he said.

Danone has released a statement saying it welcomes this arbitration decision “as a guarantee that the lessons from the crisis will not be forgotten”.

More like this

Fonterra cements position as the big cheese!

Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.

Fonterra, Sharesies join to make share trading easier

Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.

Co-op eyes Japanese market

Japanese consumers pay a premium for food that contains ingredients that support health.

Fonterra's in good shape

Fonterra released its interim results last month, showing a continuation of the strong earnings performance delivered by the co-op through the 2023 financial year. Here’s what Fonterra chair Peter McBride and chief executive Miles Hurrell said about the results…

China trade

OPINION: Last week's revelation that data relating to New Zealand MPs was stolen amid Chinese state-sponsored cyber espionage targeting two arms of the country’s Parliament could test the long-standing trade relations between the two countries.

Featured

McIvor moving to OSPRI

Beef + Lamb New Zealand chief executive for the past eight years, Sam McIvor is heading for new pastures at Ospri, which runs NZ’s integrated animal disease management and traceability service.

Cyclone-hit wool scourer reopens

The world's largest wool scouring facility, WoolWorks Awatoto plant in Napier, is back operating at full capacity.

Off the radar

A year on and the problems created by Cyclones Hale and Gabrielle has largely dropped off the radar of media and politicians.

Still picking up the pieces

Feeling forgotten and in a fragile space financially and mentally.

Benefits of EU trade deal

The European Union Ambassador says the new free trade agreement (FTA) between the bloc and New Zealand will bring significant benefits to both parties.

Well said at the shed

Less Wellington bureucracy and more local, on-farm common sense was the focus of recent meetings held in South Canterbury as part of the Government's National Woolshed tour program.