Danone to Sue New Zealand’s Fonterra Over Baby Formula Recall

On August 2, 2013, Fonterra issued an alert concerning a possible contamination of certain ingredients supplied to Danone. Additional tests revealed later on that it was in fact a false alert.

This affair illustrates serious failings on Fonterra’s part in applying the quality standards required in the food industry.

Danone is terminating its existing supply contract with Fonterra and making any further collaboration contingent on a commitment by its supplier to full transparency and compliance with the cutting-edge food safety procedures applied to all products supplied to Danone.

Danone is also initiating proceedings in the New Zealand High Court, as well as arbitration proceedings in Singapore to bring all facts to light and to obtain compensation for the harm it has suffered.

As a leading food company, Danone makes food safety an absolute priority and is committed to working only with suppliers that share and respect the same demanding professional standards.

The IUF will closely monitor any job implications at Fonterra operations as a result of Danone’s decision to terminate its existing supply contract with Fonterra.