New Zealand's a2 Milk Settles Lawsuit with Australian Competitor

A lawsuit has been settled by New Zealand-based a2 Milk Company Ltd with a competing dairy company in Australia over allegations of misleading advertising and packaging.

Lion Dairy & Drinks Pty Ltd was sued by a2 Milk when a case was filed June 2016 in the Australian Federal Court. In the case a2 Milk alleged Lion Dairy had misleading and deceptive advertising claims and labeling.

Lion Dairy filed a counter-suit challenging the similar promotions a2 Milk was using.

The dispute started when Lion Dairy added a yellow strip to milk brands Pura and Dairy Farmers saying “Naturally contains A2 protein.”

a2 Milk is marketed as an alternative to other milks containing the A1 beta-casein protein because it only contains the A2 protein. a2 claims their A1 beta-casein-free milk is easier for consumers to digest.

On Dec. 7 the companies announced they had reached a settlement, but did not disclose if any money was exchanged.

“A settlement has been reached in respect of the legal dispute,” a2 Milk said in a statement. “The parties have mutually agreed not to proceed with their cases against each other. The terms of the settlement are confidential.”

According to reports in Australia, Lion Dairy agreed to remove the yellow strip mentioning “A2 protein” as part of the settlement.

Currently, a2 Milk can be found in stores across the U.S. The milk is sold in grocery chains like Sprouts, Whole Foods, Ralph’s, Publix, Safeway, Winn Dixe, Meijer and Target.