The agreement was going well until Bega Cheese announced in 2017 that it would buy a suite of Kraft products from Mondelez international, which it started replacing with the Bega brand. • Interpretation of “practically feasible ” - does the asset beta for Fonterra’s Notional Business reflect the allocation of systematic risks borne by the processor and suppliers (farmers) in accordance with the “rules” to set the ... • Bega does not appear to have the direct ability to transfer reductions in Bega- The Federal Court dismissed an appeal by Heinz and Kraft to prevent Bega using the packaging Bega is fighting a separate legal battle with Fonterra over the use of its own brand US food companies Kraft and Heinz wanted to stop Bega Cheese from using a distinctive type of packaging on the peanut butter products Bega is currently selling. With a long history in dairy, we harness our global dairy expertise and local knowledge to support our farmers, partners and people. And according to one company, Bega has been very bad. "As a partner, who has worked together with Bega for so long to create Australia's most popular brand of cheese, we look forward to this dispute being resolved.". The … We collect around 20 percent of the total Australian milk pool annually from our farmer suppliers. Court documents, seen by the ABC, show Fonterra sent an email in July 2017, asking for confirmation that "Bega will not begin using any of the Bega trademarks or any similar trademark, including the word Bega, to market products in Australia without Fonterra's consent". The news of Fonterra's $46 million share buy-up sent Bega shares to a record high of $4.94, before closing at $4.83, up 42 cents, or 9.5 per cent. news.com.au — Australia’s leading news site. Bega’s ownership of the Bega Brand is not questioned. Subscriber only. "Unfortunately, we're in a legal dispute over the use of the Bega brand on peanut butter and other products," it said. The Fonterra Shareholders’ Fund (Fund) is a registered managed investment scheme under the Financial Markets Conduct Act 2013. At the same time, Bega is fighting Fonterra, after the New Zealand company claimed the use of Bega’s logo on that same peanut butter jar contravened a licensing deal the pair struck in 2002. Fonterra already licenses the Bega brand and has a cheese supply contract with the Australian company. Fonterra alleges the use of the Bega brand on new products has eroded the commercial value of the brand it licenced in 2002 by "diluting the distinctiveness of the brand". Bega also took umbrage at the fact that Fonterra only developed one TV advertising campaign — 2009's Real Town, Real Cheese — which it re-ran in 2015. Last year, Bega announced a $160 million capital raising through a share offering to institutional investors. Subscribe for the national headlines of the day. Australia is the source of Fonterra’s largest milk pool outside of New Zealand and home to some of the country's favourite dairy brands. Fonterra and its … Specifically, it cites the amount spent on advertising and promoting Bega products by Fonterra declining from $660,000 in 2011 to $15,000 in 2017. The current 2001 agreement is ongoing. Bega alleges that not only has Fonterra failed to adequately do that, it has also further breached the deal by promoting and innovating its own product suite more than Bega-branded products. Bega owns about 18 percent of … Sources close to the deal have suggested that Fonterra wants a blocking stake in the event that Bega does become the subject of a takeover. Share this on Facebook   The 9.3 million shares were purchased at Aus$4.95 per share. 04 Nov 2013 --- Fonterra Co-operative Group Limited has acquired a 6 per cent shareholding in Australian dairy company Bega Cheese Limited. At the heart of it is a well-known brand, Bega Cheese. The company said the cash injection was earmarked for growth plans in its dairy and food business. When the licensing deal was struck, Fonterra agreed to "promote and develop sales" of the products. The trial, which opened in Melbourne on Monday, will run for five weeks, with a further two weeks of hearings in February. The Kiwi company also said use of the Bega logo and trademark on its new products was a violation of the terms. “Bega Cheese’s current business relationship with Fonterra continues in the same fashion as it has done for many years.”. According to court papers, some Woolworths supermarkets have already been briefed on what to expect. The move to expand the range of products carrying the Bega logo raised concern at Fonterra. Fonterra claimed Bega’s move to rebrand those products constituted a breach of agreement. Fonterra also said the alleged breaches "unless restrained, cause significant damage to the existing reputation of the Bega trademarks for representing natural cheese sourced from Australia". A separate move by Bega to replace the Kraft logo with a Bega one on jars of peanut butter, macaroni cheese and similar products kicked off a second legal fight with New Zealand dairy giant Fonterra. FONTERRA HAS BOUGHT a 6% stake in Australian dairy company Bega Cheese Ltd for AUS$46 million (NZ$52m). Fonterra Co-operative Group Limited / ˈ f ɒ n t ɛr ə / is a New Zealand multinational publicly traded dairy co-operative owned by around 10,500 New Zealand farmers. Find out more about our policy and your choices, including how to opt-out. The news of Fonterra's $46 million share buy-up sent Bega shares to a record high of $4.94 as the Australian market opened at 1000 AEST, marking a 12 per cent rise or 53 cents. “Bega Cheese has a longstanding licence and product supply agreement on cheddar and processed cheese with Fonterra in Australia. Along with a long list of other alleged breaches, including "excessive discounting" of Bega-branded products, Bega alleges Fonterra has damaged the goodwill of the brand. Yes, Saputo might be Canadian owned and Fonterra’s controlled from across the ditch but they both have a strong farming business culture, as clearly does Bega even if … SOME of the country’s favourite food brands are locked in a fight over who will become the biggest cheese of them all. A core disagreement between the parties is whether Bega Cheese is using the Bega trademark it licensed to Fonterra on the new products, or whether it's using a "stylised Bega mark similar to some of the trademarks" in the deal. September 30, 2020 12:01am. We’ve done this through investing heavily in the brand, in new product innovation and in marketing.”, Fonterra claimed Bega’s actions led to “an erosion of the commercial value of the rights granted under the Agreements and resultant lost sales and business.”, “The Good Nut” brand started appearing on peanut butter jars before the Kraft name disappeared.Source:Supplied. New Zealand dairy company Fonterra markets and distributes supermarket staples including Perfect Italiano, Mainland, Western Star and Bega. The sale of Fonterra's shareholding has no implications for its long-standing relationship with Bega, which includes a license on the Bega brand and a supply contract for cheese. Fonterra is huge – its products account for more than a quarter of total New Zealand merchandise exports (stuff we sell overseas), and 7% of our … “Fonterra, as Bonlac Foods, in 1983 entered into an agreement with Bega Cheese Limited for the licence and marketing of the Bega brand. Fonterra said this was also a breach of contract. A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (including ads) you use across this site and use it to make both advertising and content more relevant to you on our network and other sites. “Fonterra has a long-standing agreement with Bega Cheese Ltd that gives us an exclusive licence of the Bega brand,” they said. News.com.au understands Bega’s plan is to continue its rebrand of former Kraft products to Bega products, including from Kraft Mac & Cheese to Bega Mac & Cheese. In Australia, Fonterra Brands (Australia) operate under a licence agreement with Bega and they are responsible for the distribution of the Bega brand in Australia. New Zealand cooperative Fonterra is a global dairy giant with a strong presence in Australia, selling Mainland Cheese, Perfect Italiano cheese and Western Star butter. Nationwide News Pty Limited Copyright © 2020.