Danone, parent company of Nutricia which owns the Karicare formula range for infants and toddlers, is claiming at least €200 million (about NZ$329 million) in compensation from Fonterra after having to recall products in eight markets after the botulism scare.
According to Bloomberg, France's Danone sent a notice of dispute to Fonterra on September 24 “to give both parties a chance to reach an amicable agreement prior to any litigation.”
Bloomberg reported Danone was “determined that it should be fully compensated for damages” and viewed food safety as “a non-negotiable prerequisite.”
The €200 million figure was "part of" what Danone was seeking from Fonterra in compensation, Bloomberg added.
Fonterra has confirmed it's in a dispute resolution process with Danone, but "strongly denies" any legal liability to Danone in relation to the recall.
The product recalls were made in early August. However, in late August the Ministry for Primary Industries announced "clear and definitive" test results showing that whey protein concentrate produced by Fonterra was not contaminated with toxins that could cause botulism, as had initially been feared.
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