A2 Milk to cancel exclusive infant formula deal, citing performance issues.
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email
Synlait hit by a2 Milk decision
Synlait has gone into a trading halt since a2 Milk signalled plans to cancel the exclusive manufacturing arrangement covering infant formula.

A2 Milk to cancel exclusive infant formula deal, citing performance issues.

A2 Milk has given notice of cancellation of the exclusive manufacturing arrangement with Synlait covering infant formula base stages 1 to 3.

Synlait has gone into a trading halt on the NZX stock exchange as it considers the information received and its impact on Synlait.

Synlait is due to release its FY2023 financial results on Monday, September 25.

Its share price had already fallen from $3.50 during 2022 to $1.28 when trading was halted.

A2 Milk said Synlait’s delivery and performance during 2023 has fallen below the level required for the exclusive manufacturing and supply rights.

If Synlait appeals the cancellation notice the matter will be resolved through good faith negotiations, a2 Milk said.

The manufacturing and supply agreement between Synlait and a2 will remain in place, notwithstanding the removal of exclusivity.

Some 20% of Synlait’s shares are owned by a2 Milk.

Mention was made of the ability of Mataura Valley Milk in Southland, 75%-owned by a2 Milk, to produce a2 infant formula base, but that is still some time away.

Pioneering females are disproving the old-fashioned view that dairy is an industry for men. Meet the dairywomen reshaping the narrative.

You may be interested in

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

To comment or reply you must 

or

Related
notes

Cerrar
*
*
Cerrar
Registre una cuenta
Detalhes Da Conta
*
*
*
*
*
Fuerza de contraseña

SUBSCRIBE TO OUR NEWSLETTER