Asahi in court over canned can contract

Packaging manufacturer Orora has initiated legal proceedings against Asahi Holdings (Australia) after the Japanese beverage giant cancelled a major contract.

Asahi cancelled its can contract with the Amcor spin-off on 18 September, and Orora has in response taken action in the Supreme Court of Victoria, seeking discovery of documentation of Asahi's dealings with other packaging suppliers, according to Fairfax Media.

There are unconfirmed suspicions that Orora was out-bid by rival packager and former Amcor cartel partner Visy Packaging in the contract for Asahi's beer and Schweppes-brand soft drinks, according to the report.

Legal representatives for Asahi told the packager on 29 September it had cancelled a tender process because Asahi's business needs had changed and it did not require supply of the package, according to Orora.

Orora, which has had a business relationship with Asahi since 1987, claimed in its filing it had a final option in its 2002 contract for Asahi not to enter into any future agreement with another party without granting Orora the right to make a counter-offer.

Orora held two six-year contracts with Asahi, one commencing in 2002, and the other in 2008, which was later extended to 2016, according to Fairfax Media.