An ambitious bid by a European cafe supplies business to milk about $27 million in damages payments from the Australian makers of Milklab has ended with Sydney-based dairy processor, Noumi, paying out $400,000.
Noumi's Milklab dairy and plant-based beverage range is a favourite with cafe baristas Australia-wide.
It was potentially going to be distributed in Europe by the French-connected business, Sunday Collab International, founded by a couple of champions from the global surfing circuit.
The Australian arm, which also has strong surfing ties back to local pro-surfer and investor, Joel Parkinson, led the legal action.
Sunday Collab claimed it had cut a distribution deal with Milklab's producer back in 2019-20, although it was never signed off.
Damages claim
Its 17m euro damages claim originally started out in March last year as a legal demand for about 387,500 euros ($A600,000), unless Noumi recognised the partly finalised supply deal.
Noumi's former business entity, Freedom Foods, began discussions in 2019 to apparently establish an exclusive distribution network for MilkLab products in cafes in Europe, and potentially into the Middle East.
However, negotiations were not followed through in early 2020, partly because the coronavirus pandemic and lockdowns were spreading globally.
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Sunday Collab, meanwhile, had accumulated significant costs developing its distribution plan, including European travel and accommodation.
However, Noumi later argued the potential partner showed little evidence of previous distribution experience with dairy or plant-based beverages in the highly competitive European market.
In August last year Sunday Collab decided to amend its statement of claim through the Supreme Court of Queensland, seeking lost profit damages for 17m euros (equivalent to $27.8m at the time), including additional business costs.
It argued Freedom had previously given every indication an agreement had been reached and the processor had breached a contract.
Without merit
At the time Noumi told the Australian Securities Exchange the damages claim was unsubstantiated, the demands were without merit and the proposition of lost profits was wholly unsupportable.
However, Noumi has now confirmed it has reached a full and final settlement to pay Sunday Collab $400,000.
Settlement will cover the entire dispute, including any entitlement to legal or other costs incurred by the coffee products and equipment outfit - roughly about $27m less than it was seeking six months ago.
The Sunday Collab business was founded by professional surfers Carl Wieser and Reid Pinder, also former long-time Billabong surf wear marketing bosses in Europe, where they had strong surf culture roots in south western France.
In Australia its operations included investment backing by Gold Coast-based pro-surfer, Mr Parkinson and former Queensland rugby league player, turned Gold Coast Titans chief executive officer, Michael Searle, and others.
Local surf live saver and former under 20s world ironman champion, Luke Cuff, is a sales representative with the Australian business.
Legal worries persist
Meanwhile, Noumi's court concerns continue in Victoria.
The company and its former auditor Deloittes are the focus of a joint class action, accused of breaching the Corporations Act, the Australian Securities and Investments Commission Act, and the Australian Consumer Law Act in mid-2020 when vast accounting discrepancies and about $60m in outdated inventory losses were revealed.
Noumi has processing plants at Shepparton in northern Victoria and Ingleburn in south western Sydney.
The company recently reported a 9pc lift in second quarter revenue over the previous three months to $146m which was up about 4pc on the same time in 2022.
Its first half 2022-23 year profit results will be announced in late February.
Noumi is Australia's biggest packer of long life milk and plant-based liquid products, including its Milklab, Australia's Own, and So Natural brands.
It also producing protein powders and health snack lines sold under the Crankt, Uprotein and Vitalife labels.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
