Danone seeks full compensation from Fonterra

Danone is 'determined' to be awarded full compensation following Fonterra's recent botulism scare, which saw international recalls of Danone's infant formula products.

Fonterra this week confirmed that it's in a dispute resolution process with Danone, the manufacturer of Karicare infant formula, which was subject to extensive product recalls earlier this year after Fonterra issued a warning that the whey protein in the formula products could contain a bacterium known to cause botulism.

According to stuff.co.nz, a spokeswoman for Danone said a notice of dispute has been sent to Fonterra to "give both parties a chance to reach an amicable agreement prior to any litigation, as Danone is determined that it should be fully compensated for damages caused by the recall on eight markets.

"For Danone, food safety is a non-negotiable priority and we are co-operating fully with local authorities and key stakeholders to determine the causes of the situation and clarify responsibilities," she said.

Thirty-eight tonnes of the whey protein concentrate, manufactured at Fonterra’s Hautapu plant in May 2012, was believed to have been contaminated by an unsanitary pipe, and the scandal, which unfolded in August, resulted in the resignation of managing director, Gary Romano, as well as two senior managers being place on leave, effective immediately.

However it was later uncovered that the bacteria found in the whey protein concentrate wasn't clostridium botulinum as originally thought, but was acutally identified as clostridium sporogenes, which doesn’t lead to any known food safety issue.


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