Fonterra’s Legal Claim Against Bega Dismissed by NSW Supreme Court

The NSW Supreme Court has concluded a significant legal case involving the dairy giants Fonterra and Bega, with the dismissal of Fonterra’s claim concerning its Australian licensing arrangements. This case was crucial for the potential sale of Fonterra Oceania assets, a move announced by Fonterra in May 2024.

The legal battle sought to confirm that Fonterra's trademark licensing arrangements with Bega would remain unaffected amidst the asset sale. However, on Monday, April 28, the court ruled against Fonterra, ordering it to cover Bega’s legal expenses.

Fonterra highlighted that this ruling does not alter its global divestment plans, although it may seek further legal clarity as there remains uncertainty regarding the asset sale's outcome. Bega expressed satisfaction with the decision as it supports its rights and interests in ongoing proceedings.

Notably, Fonterra packs Bega-branded products, including a new range of snacking products that mix Bega cheese with crackers, reinforcing the intertwined operations between the two companies. The outcome of this case holds relevance for future negotiations and potential acquisitions, with Bega showing keen interest in purchasing the Oceania businesses from Fonterra.

Bega’s Executive Chairman Barry Irvin stated, “Bega Group will always fight to protect its rights, and we are very pleased with today’s outcome. We hope to work constructively with Fonterra Group on the sale of its Oceania businesses of which Bega Group is a natural acquirer and remains very interested in.”