A2 and Lion Group settle milk dispute

There will be no more crying over spilt milk between Lion Group and a2.

A2 milk and Lion have settled out of court. Picture: AAP

Dairy arch rivals a2 Milk and the Japanese-owned Lion Group have settled their multi-million dollar legal dispute over the over the labelling of Lion’s Australian milk brands.

In a short statement released tonight, both parties said they had “mutually agreed not to proceed with their cases against each other.” The terms of the settlement are confidential.

“The parties are very satisfied with the outcome and will remain focused on building and maintaining the strength of their individual brands,’’ they said.

A2, one of the best performers on the Australian sharemarket over the past year, sells milk and infant formula that only contains the A2 protein and claims that A2-only milk can be consumed by those who struggle to drink normal milk.

Last year a2 launched legal action against Lion, which markets the Pura and Dairy Farmers brands and is owned by the Japanese brewing conglomerate Kirin, after it marketed its milk products with the tag “Contains A2 protein”.

a2 alleged Lion’s marketing was misleading and deceptive for consumers because, unlike a2, it did not change the protein composition of its milk.

It said Lion’s packaging represented to consumers that the Pura and Dairy Farmers brands were the same as or similar to a2 Milk, or that they had the same protein composition as a2 Milk or had the same or similar benefits as a2 Milk.

It said as a result some consumers had purchased Pura & Dairy Farmers milk under the false impression that they were buying a2 Milk.

Lion counter-claimed to protect its “Naturally contains A2 protein” claim and also moved to scrutinise the science behind a2’s health-related claims.