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News: Fonterra in talks with Danone

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    Fonterra (ASX:FSF) says it’s in talks with French food giant Danone following the whey protein contamination scare.


     


    The discussions between the New Zealand dairy co-operative and the owner of the Nutricia brand are confidential, with a view to reaching a mutually acceptable commercial outcome.


     


    In a short statement today, Fonterra confirmed Danone discussions were ongoing but strongly denied any legal liability to Danone in relation to the recall.


     


    Danone has previously said it expected its baby nutrition division's third-quarter sales to be lower because of the food safety scare.


     


    Fonterra issued a worldwide recall of products in August after testing revealed some batches of its whey protein, which is used to make infant formula, were potentially contaminated with a botulism-causing bacteria.


     


    Further testing showed the bacteria wasn't present and there wasn’t a health risk.

 
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