Fonterra Seeks Court Clarification on Bega Licensing Amid Asset Sale Plans
Source: DairyNews.today
Fonterra is pursuing legal action against Australian dairy company Bega in the Supreme Court of New South Wales to clarify the status of their trademark licensing arrangements. The move comes as Fonterra prepares to sell its Oceania assets, a process announced in May 2024 as part of the company’s broader strategic restructuring.
Court Proceedings to Address Licensing Terms
The court filing seeks a declaration that the proposed transactions surrounding Fonterra's asset divestment do not affect its trademark license agreement with Bega. Fonterra currently packs Bega-branded products, including a popular snacking line featuring Bega cheese and crackers.
Bega disclosed the court action, emphasizing that Fonterra is not seeking damages or changes to the existing contractual or operational arrangements. The case aims to address "speculation regarding certain provisions" in the licensing agreement, according to a statement from Fonterra.
“Fonterra is confident in its legal position and does not expect this matter to disrupt its timeline for any divestment,” the company stated.
Fonterra’s Strategic Shift and Divestment Plan
Fonterra CEO Miles Hurrell reaffirmed the cooperative’s decision to divest its Oceania and Sri Lanka businesses, citing a focus on its ingredients and foodservice operations as part of a revised strategy. The divestment is aimed at maximizing long-term value for Fonterra and narrowing the cooperative's scope to its core operations.
“Since our announcement in May 2024, we have been working with advisors to assess potential divestment options and determine the best pathway to maximize value for our co-op,” Hurrell said. “This work has confirmed that a divestment of our global consumer and associated businesses aligns with our strategic direction.”
Interest from Buyers
Hurrell noted that the businesses under consideration for sale have attracted significant buyer interest, underscoring their market strength and growth potential. A final decision on the divestment strategy will weigh factors including value optimization and strategic fit for Fonterra’s future focus.
The sale process forms part of Fonterra's effort to streamline its operations and enhance performance by concentrating on higher-margin areas of its business.
The court filing seeks a declaration that the proposed transactions surrounding Fonterra's asset divestment do not affect its trademark license agreement with Bega. Fonterra currently packs Bega-branded products, including a popular snacking line featuring Bega cheese and crackers.
Bega disclosed the court action, emphasizing that Fonterra is not seeking damages or changes to the existing contractual or operational arrangements. The case aims to address "speculation regarding certain provisions" in the licensing agreement, according to a statement from Fonterra.
“Fonterra is confident in its legal position and does not expect this matter to disrupt its timeline for any divestment,” the company stated.
Fonterra’s Strategic Shift and Divestment Plan
Fonterra CEO Miles Hurrell reaffirmed the cooperative’s decision to divest its Oceania and Sri Lanka businesses, citing a focus on its ingredients and foodservice operations as part of a revised strategy. The divestment is aimed at maximizing long-term value for Fonterra and narrowing the cooperative's scope to its core operations.
“Since our announcement in May 2024, we have been working with advisors to assess potential divestment options and determine the best pathway to maximize value for our co-op,” Hurrell said. “This work has confirmed that a divestment of our global consumer and associated businesses aligns with our strategic direction.”
Interest from Buyers
Hurrell noted that the businesses under consideration for sale have attracted significant buyer interest, underscoring their market strength and growth potential. A final decision on the divestment strategy will weigh factors including value optimization and strategic fit for Fonterra’s future focus.
The sale process forms part of Fonterra's effort to streamline its operations and enhance performance by concentrating on higher-margin areas of its business.
