The a2 Milk Company has come to a confidential settlement with Lion over the latter's use on its label of “A2 protein” that then spilled into a tussle over the health claims of a2 milk.
Following the runaway success of the a2 brand, Lion added "naturally contains A2 Protein” to its milk containers, triggering legal action by a2 Milk's maker, which claimed the global giant was trying to pass its products off as being like its own.
Lion, meanwhile took on a2 Milk over its claims that A2 milk, which is produced by cows specially selected to produce only A2 beta-casein protein, is easier to digest.
The a2 Milk Company said this week in a statement that the parties had “mutually agreed not to proceed with their cases against each other”, and that the terms of the settlement were confidential.
“The parties are very satisfied with the outcome and will remain focused on building and maintaining the strength of their individual brands,” the company said.
The a2 Milk Company's revenue grew 56 per cent to NZ$549.5 million in the financial year to June, driven by growth in infant formula.
