Danone to sue New Zealand's Fonterra over baby milk scare
An investigation found Fonterra’s bacteria warning was a false alarm
French food giant Danone has set out plans to sue New Zealand dairy group Fonterra over a false warning that triggered baby milk recalls last summer.
Fonterra warned that some of its products had been infected by a botulism-causing bacteria, prompting Danone, which uses Fonterra ingredients in its Dumex and Karicare milk formulas, to issue recalls in nine countries including China. An investigation found Fonterra’s bacteria warning was a false alarm.
Actimel and Evian-owner Danone now says it is ending its contract with Fonterra as well as suing for compensation for lost sales.
Baby food accounts for a fifth of Danone’s revenue, second only to its dairy business. China is a key growth area for Danone amid slow demand in economically struggling Europe.
“This affair illustrates serious failings on Fonterra’s part in applying the quality standards required in the food industry,” Danone said. It previously claimed the recalls had hit sales to the tune of €350 million (£290 million). Fonterra said it “will vigorously defend any proceedings”.
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
Bomber jacket worn by Mary Berry sells out within an hour
- 1 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 2 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
- 5 Cocaine and cannabis haul hidden in Vatican car seized by French police
Scottish independence referendum live - The reunited kingdom: Scotland gives a clear 'No' to independence in historic referendum
Archbishop of Canterbury admits doubts about existence of God
Scottish independence: YouGov final prediction puts No campaign 8 points ahead - but Yes team remains optimistic
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...
To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...
Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...