a2 Milk sues Lion over branding claims

The booming a2 Milk company is suing multinational Lion Group over the labelling of its Australian milk brands.

a2 alleges Lion’s milk labelling is misleading and deceptive. Picture: Calum Robertson

The booming a2 Milk company has launched legal action against Japanese-owned food and beverage multinational Lion Group over the labelling of its Australian milk brands.

Lion, which markets the Pura and Dairy Farmers brands and is owned by the Japanese brewing conglomerate Kirin, is being sued by a2 over moves to market its milk products with the tag “Contains A2 protein” which a2 alleges is misleading and deceptive under the Australian Consumer Law.

A2 yesterday launched the action in the Federal Court in Sydney after it claimed Lion had failed to respond to correspondence on the issue over the course of almost two years.

A2 has long marketed its milk on the basis that it comes from cows hand-picked to naturally produce only A2 protein, which makes it easier to digest.

Some viewed the marketing as a stunt and last year a2 launched legal action against the ABC for defamation.

In its latest claim a2 alleges 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.

A2 this week issued its third profit upgrade in six months.

It is seeking an injunction permanently restraining Lion from including on its packaging the alleged misleading and deceptive statements plus damages and interest.

Lion declined to comment.