Kraft Heinz to pay Bega Cheese $9 million over peanut butter dispute
American food giant Kraft Heinz has agreed to pay Aussie dairy giant Bega Cheese more than $9 million following legal proceedings involving peanut butter.
The two companies have been locked in a legal dispute over Bega's use of its current packaging of its smooth and crunchy peanut butter products.
Kraft was disputing Bega's right to use the distinctive yellow label and yellow lid packaging.
READ MORE: Bega's $530m deal brings iconic brands back into Australian hands
READ MORE: New survey reveals the most popular chocolates in Australia
Bega was won the right to use its current trade packaging for its peanut butter products. Bega Cheese
In a statement to the market today, Bega Cheese said the companies have entered into a confidential agreement, which in part, involves Kraft Heinz paying Bega $9.25 million.
"Bega Cheese and Kraft Heinz have now entered into a confidential settlement regarding the issues of monetary relief and legal costs payable in respect of the legal proceedings," Bega said in a statement.
"As part of the settlement, all outstanding issues between the parties regarding the right to use the peanut butter trade dress and the legal proceedings have been resolved.
"Following receipt of the payment by Bega Cheese the legal proceedings will be discontinued."
READ MORE: Snack recall issued over 'undeclared allergens'
Bega Cheese has become one of Australia's most dominant and diversified food companies. AAP
Bega said its focus has always been to continue selling the product.
"Bega Cheese looks forward to continuing to produce and supply our customers with our much-loved peanut butter products," the company said in a statement.
"We are a proud Australian company and are proud to own Australia's favourite peanut butter."
Bega is currently trading at $5.830.
Share a tip-off, video or photo with us
