For years, Fonterra has controlled several Bega brands as part of a decades-long deal. But now the label issue is heading to court.
Prospective buyers of Fonterra’s Australian assets are understood to have triggered a move to seek a court ruling over the future of Bega labelling rights.
Last week, Fonterra started proceedings in the NSW Supreme Court regarding its licensing agreement with Bega Cheese.
The two companies reached an agreement for Fonterra to produce Bega-branded cheese under a deal struck in 2002.
But in 2017, when Bega Cheese purchased a range of well-known spreads from Kraft including Bega-branded peanut butter and Vegemite, a legal stoush ensued.
After four years of court proceedings, Fonterra then lost its legal battle to block Bega Cheese from using the Bega brand on its range of peanut butter.
The latest move was announced to the ASX, in the midst of a sale of Fonterra’s Australian assets — which was confirmed earlier this year with a mid-2025 deadline.
“Fonterra is seeking a court determination to confirm the co-operative’s clear understanding that the provisions of its licensing agreement with Bega are not impacted by a divestment process,” Fonterra management told the ASX.
In a statement to the ASX, Bega Cheese executive chairman Barry Irvin said the latest court proceedings do not affect the operation of the trademark licence agreements between Bega and Fonterra. “Fonterra is not seeking damages,” Mr Irvin said in the ASX missive.
“Fonterra is not seeking to alter the current contractual or operational arrangements between the parties.”
Both Bega and Fonterra were contacted by The Weekly Times for comment.
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