Bega Cheese wins legal battle against Fonterra in trademark dispute

AUSTRALIA – Australia’s Bega Cheese emerged victorious in a trademark dispute with New Zealand’s Fonterra Co-operative, as the Supreme Court of New South Wales dismissed Fonterra’s claims regarding licensing agreements. 

The ruling, announced on Monday, marks a significant development in the ongoing legal tussle between the two dairy giants, potentially influencing Fonterra’s plans to divest its consumer business in Oceania.

The dispute originated in November 2024 when Fonterra sought a court ruling to confirm that its proposed divestment of its Oceania unit, valued at approximately US$2 billion, would not affect its trademark licensing agreements with Bega Cheese. 

These agreements, established in 2001, allow Fonterra to use Bega’s brand on dairy products such as butter and cheese. 

Fonterra argued that the sale would not alter the terms of the licensing deal, particularly clauses related to control changes. 

However, Bega Cheese contested this, expressing concerns that the divestment could infringe on its trademark rights.

According to Bega Cheese, the court’s decision to dismiss Fonterra’s case reinforces its position in the partnership. 

“We are pleased with the court’s ruling, which protects our brand integrity,” said Barry Irvin, Executive Chairman of Bega Cheese. 

He emphasized the company’s interest in acquiring Fonterra’s Oceania business, adding, “Bega remains a natural buyer for these assets, and we look forward to constructive discussions with Fonterra.”

The ruling could delay Fonterra’s divestment plans, which include brands like Anchor, Mainland, and Western Star. 

Fonterra, one of the world’s largest dairy exporters, announced its intention to sell its consumer division in 2024 to focus on its ingredients and food service sectors. 

The company reported strong earnings for 2025, forecasting a milk price payout of US$6.02 per kilogram of milk solids to its farmers. 

Despite the legal setback, Fonterra expressed confidence in its position and stated it would review the court’s decision.

Bega Cheese, a major player in Australia’s dairy industry, has been expanding its portfolio and reported a dividend of US$0.04 per share for the period ending December 2024. 

The company’s shares rose by 1.9% following the court’s ruling, reflecting investor optimism about its strengthened position. 

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