Fonterra Settles Greenpeace Claim Over Anchor Butter Labelling

In a joint statement with Greenpeace, Fonterra accepts that labels on Anchor Butter with the two phrases '100% New Zealand' and 'Grass Fed' in combination with each other were likely to mislead some New Zealand consumers, particularly those unaware of the nature of the feeds that are provided to dairy cows.

Fonterra also accepted that the labelling was in breach of s9 of the Fair Trading ACT 1986.

The Anchor brand is part of the $4.2 billion sale to Lactalis. However, Fonterra will continue to own the Anchor brand in Greater China. The sale was completed last week. Fonterra farmer shareholders and unitholders will receive a $2/share dividend from the sale, amounting to $3.2b. The payment will be made on April 14.

The civil proceeding concerns claims by Greenpeace that a label on Anchor butter sold in New Zealand supermarkets between December 2023 and April 2025 was misleading and in breach of the Fair Trading Act 1986 because the diet of cows whose milk was used to make the butter included non-grass feed including palm kernel expeller (PKE).

Fonterra has removed the label from its Anchor butter packaging and has undertaken not to use the label on its packaging in the future.

In a separate statement, Fonterra says that it stands by its Grass Fed claims.

However, it recognises that the combined use of the two phrases would have been likely to mislead some consumers and has accepted this in the settlement with Greenpeace, the details of which are confidential.

Fonterra says its cows are 96% grass fed and Fonterra's Grass and Pasture Fed Standard has been independently verified as meeting the requirements of the New Zealand Dairy Grass-Fed Administrative Standard. Grass is defined to include grass, grass silage, hay and forage crops (including legumes and brassicas).