Page 5 - Food & Drink magazine June 2021

NEWS
Freedom Foods loses appeal, US arbitration to proceed
ARBITRATION between Freedom Foods Group (FFG) and Blue Diamond Growers will go ahead in the US after the Full Court of the Federal Court of Australia rejected Freedom Foods Group’s attempt to block the action.
FFG was appealing a trial court decision in March, which ruled the US arbitration go ahead. The Full Court rejected the appeal unanimously, 3-0.
In September 2020, Blue Diamond
sued FFG for fraud and breach of the
parties’ licence and distribution
agreement. Blue Diamond contends
that it had a contract with FFG to make, sell and promote its products in Australia and New Zealand and that Freedom Foods would not compete with Blue Diamond in those markets.
The companies entered a licence agreement in 2011 in which FFG would exclusively manufacture Blue Diamond almond beverages in Australia and New Zealand. It was amended in 2014, giving FFG permission to manufacture privatelabelbrandsbutusingtheBlueDiamond
almond base. Blue Diamond would provide rebates, which are now at the centre of the court action. It is seeking roughly $26 million.
Blue Diamond alleges FFG breached that agreement by manufacturing and selling its own nut-based beverage products, including MilkLab and Australia’s Own.
In its 1H FY21 results, FFG's plant-based beverages rose 17 per cent to $75.2 million, with MilkLab’ssalesincreasing50percent. ✷
A2 Milk downgrades, APAC CEO resigns
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HUNGRY JACK’S SMART PACKS In a triumph for smart packaging, flexo and digital printing, and promotional
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promotion – UNO at Hungry Jack’s – delivered by a cross-industry collaboration between the fast food chain, Result Group, TLC Marketing, Multi-color Corporation and Detpak.
MARLEY SPOON’S GREEN GOALS
Meal kit company Marley Spoon has released its sustainability plan for 2025, announcing a switch to 100 per
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LION CEO
RESIGNS
Lion’s CEO Stuart
Irvine has resigned,
saying it was the
right time to step
down. He was CEO for eight years.
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The a2 Milk Company (a2MC) has announced its fourth profit downgrade in four months and the resignation of its Asia Pacific CEO Peter Nathan.
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KERRY OPENS NEW HQ
Taste and nutrition company Kerry has opened its new ANZ HQ and Technology and Innovation Centre of Excellence in Queensland.
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THE a2 Milk Company (a2MC) has announced its fourth profit downgrade in four months and the resignation of its Asia Pacific CEO Peter Nathan.
Investors wiped $690 million off its market capitalisation as it revealed a blowout to more than $90 million in old stock provision, including the cost of disposing excess inventory.
It said the challenging daigou market had resulted in excess
and ageing inventory, with April sales well below the forecast. In February, the company outlined actions planned for 2H21 to address challenges, particularly in the daigou/reseller and cross-border ecommerce channels (CBEC). These actions failed to deliver the significant improvements the company had hoped for.
The company said: “The actions in 3Q21 and in April to address the challenges in the daigou/reseller and CBEC channels have had limited impact... Consequently, the
April sales result and outlook for 4Q21 are significantly below plan.”
a2MC managing director and CEO David Bortolussi said that while
third quarter trading was broadly in line with the company’s plans, it was clear the actions to address daigou and CBEC channel challenges would not be enough to meet its previous guidance.
APAC CEO RESIGNS
Asia Pacific CEO Peter Nathan has resigned after being with the company for 14 years.
Nathan said it had been an extraordinary journey. “I am proud of the brand and business that we built from revenue of
$7 million when we relaunched the brand in Australia to where it is today,” Nathan said.
Chair David Hearn said he had made a significant contribution to the company. “Peter has been a driving force behind the business and integral in building our brand.” ✷
www.foodanddrinkbusiness.com.au | June 2021 | Food&Drink business | 5