All times AEDT (GMT +11). Find out more about our policy and your choices, including how to opt-out. This includes “Beqa” branded cheese which is cheese manufactured by Bega and sold under the “beqa” brand by Fonterra Brands (Australia). 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. Subscribe for the national headlines of the day. Fonterra’s bid to buy into Bega comes days after Japan’s Kirin Holdings Co Ltd bought a 10 percent, king-making stake in WCB. When the licensing deal was struck, Fonterra agreed to "promote and develop sales" of the products. 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. The agreement will expire in May, 2026. 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 … 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. At the heart of it is a well-known brand, Bega Cheese. 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 Kiwi company also said use of the Bega logo and trademark on its new products was a violation of the terms. Bega’s ownership of the Bega Brand is not questioned. 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". That's a 12 per cent premium to Bega's closing share price on the ASX on Thursday. According to court papers, some Woolworths supermarkets have already been briefed on what to expect. Since 1983, we’ve turned Bega into a $230 million brand and one of the leading cheese brands in the dairy case. Fonterra said this was also a breach of contract. Fonterra Brands (Australia) handle the marketing, advertising and promotion of our products within 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. The buy-up resulted in Fonterra having acquired a 6 per cent share in Bega. 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. ... and has offered 1.2 of its own … 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. 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. Bega Cheese Australia Terms & Conditions General. 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. The company said the cash injection was earmarked for growth plans in its dairy and food business.   The 9.3 million shares were purchased at Aus$4.95 per share. And according to one company, Bega has been very bad. "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. What does Fonterra do? Bega owns about 18 percent of … “Fonterra, as Bonlac Foods, in 1983 entered into an agreement with Bega Cheese Limited for the licence and marketing of the Bega brand. 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. Fonterra is a co-operative that buys milk from its farmer shareholders and processes it, mainly for export. Bega Cheese's other major consumer and foodservice packaged goods brands are " Vegemite ", "Farmers Table", "Zoosh", "Picky Picky", "Tatura" and "Dairymont". This includes “all natural and processed cheddar cheese products”, including Bega Stringers and butter products. NEW Zealand super co-operative Fonterra has sold its nine per cent stake in NSW South Coast-based dairy company Bega Cheese for $74 million. Fonterra is seeking an injunction from the Victorian Supreme Court to restrain Bega from using its trademark on any unauthorised products. We collect around 20 percent of the total Australian milk pool annually from our farmer suppliers. 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 has a longstanding commercial and distribution agreement with Bega Cheese Limited granting Fonterra the “sole and exclusive licence” of the Bega brand within Australia. 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. With a long history in dairy, we harness our global dairy expertise and local knowledge to support our farmers, partners and people. FONTERRA HAS BOUGHT a 6% stake in Australian dairy company Bega Cheese Ltd for AUS$46 million (NZ$52m). Since the acquisition, Bega has made a move to change the Kraft branding on many of those products to Bega branding. Last year, Bega said it “expressly rejected” Fonterra’s suggestion that it couldn’t use its own trademark brand without Fonterra’s consent. "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 Fonterra Shareholders’ Fund (Fund) is a registered managed investment scheme under the Financial Markets Conduct Act 2013. - Continue the conversation on Facebook or Twitter. Fonterra may vary these Terms at any time. Under that $460 million deal, Bega bought the rights to products including Kraft Singles sliced cheese, Kraft peanut butter, salad dressing and Vegemite. For example, Kraft peanut butter is now called Bega The Good Nut peanut butter while Kraft Singles became Dairylea Slices. The 9.3 million shares were purchased at AUD4.95 per share for a total cost of AUD46 million. Nationwide News Pty Limited Copyright © 2020. “Bega Cheese is the owner of the Bega Brand in Australia and around the world,” a spokesman told news.com.au. Last year, Bega announced a $160 million capital raising through a share offering to institutional investors. 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. 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. “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. Fonterra, the New Zealand-based dairy giant, has started legal action against Bega Cheese over the Australian group's moves to rebrand some of … 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". 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. “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.” Find out more about our policy and your choices, including how to opt-out. The current 2001 agreement is ongoing. Bega Cheese filed a counterclaim in March this year, alleging Fonterra had made a number of breaches of their agreement. 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 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. Accordingly, we have commenced proceedings against Bega Cheese Limited in the Supreme Court of Victoria to resolve the matter. 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. 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. September 30, 2020 12:01am. 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. This saw the Kraft name replaced with Bega on products like peanut butter, Vegemite, cheese and cream cheese spread. The case is likely to be heard in the middle of this year. 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. 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. 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. 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 terms of that agreement grant Fonterra an exclusive licence for the Bega brand within Australia. New Zealand dairy company Fonterra markets and distributes supermarket staples including Perfect Italiano, Mainland, Western Star and Bega. Fonterra already licenses the Bega brand and has a cheese supply contract with the Australian company. Do we need masks? Subscriber only. 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. Bega Cheese Limited disputes this. 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. “Bega Cheese’s current business relationship with Fonterra continues in the same fashion as it has done for many years.”. Boy, 3, bitten by deadly snake in Western Australia, saved b... Scottish influencer who looks like a ‘real-life Barbie doll’. 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. BEGA is a specialist in all questions of lighting and illumination technology - for outdoors and all areas of architecture. 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