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...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}