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Danone Claims at Least $272 Million from Fonterra Over Recall

October 8, 2013
 
 

Fonterra "strongly denies" any legal liability to the yogurt maker in relation to the recall.

Paul Jarvis

Danone said it is claiming at least 200 million euros ($272 million) in compensation from Fonterra Cooperative Group Ltd. after having to recall milk formula products because of a contamination scare.

The maker of Activia Yogurt sent a notice of dispute to Fonterra on Sept. 24 "to give both parties a chance to reach an amicable agreement prior to any litigation," Paris-based Danone said Oct. 3 in an e-mailed statement. The company said it is "determined that it should be fully compensated for damages" and regards food safety as "a non-negotiable prerequisite."

A figure of 200 million euros "is part of what Danone is asking to Fonterra as a compensation," the French food maker said in the statement. "They represent an estimation of the immediate costs caused by the recall."

Danone issued a recall of milk formula products in eight markets in August after Fonterra said the items might have been affected by a contaminated whey protein ingredient. The scare proved to be a false alarm.

Fonterra said in an Oct. 2 statement that it "strongly denies" any legal liability to Danone in relation to the recall, adding that discussions between the companies continue.

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