Why A2 Milk's strike at Synlait exclusivity deal could be 'strategy move'

There's gold in thum thar cans. Synlait is fighting to hold onto its exclusivity deal to make a2 Milk's Chinese-labelled infant formula. (Image: Supplied)

Rebecca Stevenson

Fri, 06 Oct 2023

A2 Milk’s attempt to dump its exclusive infant formula agreement with Synlait could be a first shot at renegotiating how much product it takes from the New Zealand stock exchange-listed firm, a dairy consultant says. In September, a2 Milk said Synlait had failed to meet the terms of the contract to exclusively make its Chinese-labelled infant formula, meaning it had effectively forfeited those rights. Synlait contends that a2 cannot cancel the agreement. It said it has 20 days from Sept 19 for “good faith negotiation&rdquo...

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