Danone has forwarded a claim worth EUR200 million or USD272 million as compensation for the recall of Fonterra Cooperative Group Ltd milk formula products due to a contamination scare.
The manufacturers of Activia Yogurt formally sent a notice to Fonterra last Sept 24. It said that the said dispute notice is 'to give both parties a chance to reach an amicable agreement prior to any litigation.' In an emailed statement from Danone's Paris office, it said, "We are determined that it should be fully compensated for damages' and regards food safety as a 'non-negotiable prerequisite'."
The EUR200 million is, according to the statement, 'part of what Danone is asking to(sic) Fonterra as compensation.' It added that this amount 'represent an estimation of the immediate costs caused by the recall.'
Danone issued a recall of its products from eight markets last August after Fonterra advised the milk formula may have been contaminated by a bad whey protein ingredient. The said contamination scare proved to be a false alarm.
Fonterra for its part, through an October 2 statement, 'strongly denies' any legal liability as to Danone related to the recall. It added the discussions are ongoing between the two companies regarding the matter.
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