“Fonterra considers Bega Cheese Limited’s recent move to rebrand its new grocery portfolio under the Bega brand is in breach of the terms of our agreement with them. In 2002 it made a deal to become the licensee of the Bega Cheese brand, including blocks and slices of cheese and Stringers, until 2026. 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. It said that aside from 2015, Mainland and Perfect Italiano received much more of the marketing spend. Bega responded the following month, saying it "expressly rejects any wide-reaching, unqualified and without legal precedent claims by Fonterra that suggest Bega should not use Bega trademarks or any similar trademark in Australia without Fonterra's consent". 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. For example, Kraft peanut butter is now called Bega The Good Nut peanut butter while Kraft Singles became Dairylea Slices. 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. “Fonterra, as Bonlac Foods, in 1983 entered into an agreement with Bega Cheese Limited for the licence and marketing of the Bega brand. Fonterra and its … Bega Cheese Limited disputes this. “Fonterra has a long-standing agreement with Bega Cheese Ltd that gives us an exclusive licence of the Bega brand,” they said. 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. 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 claimed Bega’s strategy behind its new slate of products created direct competition for the original Bega Cheese-branded products marketed and distributed by Fonterra. That's a 12 per cent premium to Bega's closing share price on the ASX on Thursday. The "Bega" branded Australia retail and foodservice cheese products are distributed by Fonterra under a long-term agreement. We know dairy. 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. Subscriber only. A Fonterra spokesman told news.com.au: “Fonterra has a longstanding agreement with Bega Cheese Limited that gives us the exclusive licence of the Bega brand within Australia and we have taken court action to resolve a dispute with Bega Cheese Limited about that agreement. 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 trial, which opened in Melbourne on Monday, will run for five weeks, with a further two weeks of hearings in February. Fonterra claimed Bega’s move to rebrand those products constituted a breach of agreement. This includes “all natural and processed cheddar cheese products”, including Bega Stringers and butter products. 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 … Bega Cheese's other major consumer and foodservice packaged goods brands are " Vegemite ", "Farmers Table", "Zoosh", "Picky Picky", "Tatura" and "Dairymont". The Kiwi company also said use of the Bega logo and trademark on its new products was a violation of the terms. Victoria's Supreme Court will settle a dispute between two of the dairy industry's biggest players, Fonterra and Bega Cheese, after a long-standing agreement between them turned sour in 2017. 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". At the heart of it is a well-known brand, Bega Cheese. “Bega Cheese’s current business relationship with Fonterra continues in the same fashion as it has done for many years.”. "Unfortunately, we're in a legal dispute over the use of the Bega brand on peanut butter and other products," it said. Fonterra has a longstanding commercial and distribution agreement with Bega Cheese Limited granting Fonterra the “sole and exclusive licence” of the Bega brand within Australia. For years it was a fruitful relationship, but in court papers seen by news.com.au, lodged in the Victorian Supreme Court last month, Fonterra alleged Bega is sabotaging its own brand so it can shift focus to a raft of cheese and dairy products it acquired in a 2017 deal with Mondelez. Boy, 3, bitten by deadly snake in Western Australia, saved b... Scottish influencer who looks like a ‘real-life Barbie doll’. Bega cheese stringers are also in the spotlight.Source:News Limited. • 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- 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.   The 9.3 million shares were purchased at Aus$4.95 per share. “Bega Cheese has a longstanding licence and product supply agreement on cheddar and processed cheese with Fonterra in Australia. And according to one company, Bega has been very bad. Fonterra may vary these Terms at any time. IT MIGHT be your favourite, but Bega Cheese is being taken to court by New Zealand dairy company Fonterra, who allege foul play. "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.". “Fonterra continues to exclusively sell and market Bega cheese products in Australia. 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. BEGA is a specialist in all questions of lighting and illumination technology - for outdoors and all areas of architecture. 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. 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. ALEX SINNOTT and PETER HUNT, The Weekly Times. “Bega Cheese is the owner of the Bega Brand in Australia and around the world,” a spokesman told news.com.au. FONTERRA HAS BOUGHT a 6% stake in Australian dairy company Bega Cheese Ltd for AUS$46 million (NZ$52m). Do we need masks? The buy-up resulted in Fonterra having acquired a 6 per cent share in 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. Please read the Fonterra Co-operative Group Limited (“Fonterra”, “us”, “we”, or “our”) website (“Site”) terms and conditions (“Terms”). The current 2001 agreement is ongoing. Bega made product regularly sells at the rate of over 1 million packs of cheese per day across a variety of brands and customers. UPDATED: THE world's biggest dairy exporter, Fonterra, has entered the battle for Australia's dairy assets, buying up to 10 per cent of Bega Cheese after the market closed on Thursday. Bega Cheese Australia Terms & Conditions General. In a statement to the ABC, Fonterra said "we've nurtured and built the Bega brand, and supported the Bega company to grow and provide good returns back to its farmers, shareholders and community". AEST = Australian Eastern Standard Time which is 10 hours ahead of GMT (Greenwich Mean Time), UK and European Union reach Brexit deal ahead of crucial deadline, Royal Caribbean launches legal action against families of White Island volcano tragedy, Defence Chief thanks troops, acknowledges 'difficult' Afghanistan inquiry in Christmas message, China suspends Australian timber imports from NSW and Western Australia, Police investigating after woman on superyacht arrives in Cairns with COVID-19, What are the rules about hugging? The agreement will expire in May, 2026. New Zealand dairy giant Fonterra has rights to the Bega Cheese brand until 2026 and doesn't like it appearing on products newly acquired by Bega, like peanut butter. 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 … 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". news.com.au — Australia’s leading news site. New Zealand dairy company Fonterra markets and distributes supermarket staples including Perfect Italiano, Mainland, Western Star and Bega. “Since the current agreement was negotiated back in 2001, we’ve nurtured and built the Bega brand, and supported the Bega company to grow and provide good returns back to its farmers, shareholders and community.” When the licensing deal was struck, Fonterra agreed to "promote and develop sales" of the products. Under that $460 million deal, Bega bought the rights to products including Kraft Singles sliced cheese, Kraft peanut butter, salad dressing and Vegemite. The world’s largest dairy exporter, Fonterra, has bought a 6% stake in Bega Cheese, causing the Australian dairy business’s shares to lift 9.75% in early trade. 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. This includes “Beqa” branded cheese which is cheese manufactured by Bega and sold under the “beqa” brand by Fonterra Brands (Australia). It has bought 9.3 million shares at $A4.95 apiece for a total of $A46 million, it said in a statement. New Zealand based dairy giant Fonterra last week bought 9.3 million shares in New South Wales dairy company Bega for a total cost of $46 million, sending Bega’s share price to a record high. Since the acquisition, Bega has made a move to change the Kraft branding on many of those products to Bega branding. Fonterra, Bega and Saputo pay no levies to help fund Dairy Australia. All times AEDT (GMT +11). The case is likely to be heard in the middle of this year. Chief financial officer Lukas Paravicini said the co-op was focused on investing in higher value-add dairy products which delivered the best returns for its farmer shareholders. 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. For more information click here. Bega’s ownership of the Bega Brand is not questioned. The … September 30, 2020 12:01am. 04 Nov 2013 --- Fonterra Co-operative Group Limited has acquired a 6 per cent shareholding in Australian dairy company Bega Cheese Limited. We collect around 20 percent of the total Australian milk pool annually from our farmer suppliers. Fonterra Brands (Australia) handle the marketing, advertising and promotion of our products within Australia. 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. Now, the Australian Financial Review (AFR) is reporting that Fonterra has hired broker Goldman Sachs to buy 10% of one of the bidders, Bega Cheese. The company said the cash injection was earmarked for growth plans in its dairy and food business. Since 1983, we’ve turned Bega into a $230 million brand and one of the leading cheese brands in the dairy case. Bega Cheese filed a counterclaim in March this year, alleging Fonterra had made a number of breaches of their agreement. Fonterra, the world's biggest dairy exporter, snagged 6 per cent of Bega in a share raid in October and has since crept up to 9 per cent of the register. This saw the Kraft name replaced with Bega on products like peanut butter, Vegemite, cheese and cream cheese spread. Share this on Facebook The sale of its shares, however, did not change Fonterra's commercial relationship with Bega, which includes a licence on the Bega brand and supply contract for cheese. This service may include material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service which is copyright and cannot be reproduced. For years it was a fruitful relationship, but in court papers seen by news.com.au, lodged in the Victorian Supreme Court last month, Fonterra alleged Bega is sabotaging its own brand so it can shift focus to a raft of cheese and dairy products it acquired in a 2017 deal with Mondelez. "Other than in 2015, Fonterra has spent substantially higher sums on advertising and promotion of its own brands, Mainland and Perfect Italiano," the counterclaim said. According to court papers, some Woolworths supermarkets have already been briefed on what to expect. Find out more about our policy and your choices, including how to opt-out. 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. Bega owns about 18 percent of … Last year, Bega said it “expressly rejected” Fonterra’s suggestion that it couldn’t use its own trademark brand without Fonterra’s consent. - Continue the conversation on Facebook or Twitter. 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". The terms of that agreement grant Fonterra an exclusive licence for the Bega brand within Australia. Blind mystic Baba Vanga who foresaw 9/11 saw cure for cancer... What Fabio looks like now: 2020 photos of iconic Italian mal... Woolworths giving all customers a free coffee when shopping. Fonterra said this was also a breach of contract. With a long history in dairy, we harness our global dairy expertise and local knowledge to support our farmers, partners and people. The Fonterra Shareholders’ Fund (Fund) is a registered managed investment scheme under the Financial Markets Conduct Act 2013. 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Bega Cheesehas been taken to court over a dispute about its recently acquired products.Source:News Corp Australia. Find out more about our policy and your choices, including how to opt-out. Fonterra already licenses the Bega brand and has a cheese supply contract with the Australian company. Fonterra, the New Zealand-based dairy giant, has started legal action against Bega Cheese over the Australian group's moves to rebrand some of … Subscribe for the national headlines of the day. “Bega Cheese has had a successful relationship with Fonterra over many years, we are disappointed with Fonterra’s court action, the company is very confident of our legal position. Units are listed on the NZX Main Board and on the ASX, and are able to be freely bought and sold in the same way as any other listed security. In exchange, Bega Cheese receives a substantial royalty for producing the cheese. 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