Lion countersues over A2 milk marketing

The health benefits of A2 milk [NZX: ATM], if any, are set to become the central element of a legal battle in Australia between NZX-listed A2 Milk and Japanese-owned beverage giant Lion.

Sydney-based Lion has filed a counter-claim against A2 Milk in the Federal Court of Australia alleging A2 has engaged in misleading and deceptive conduct over the marketing of A2 products.

The counterclaim follows a lawsuit filed against Lion by A2 in June over the Australia-based company’s milk packaging, which included the words “naturally contains A2 protein.”

A2 Milk’s product is marketed on the fact that it does not include A1 protein, whereas standard milk such as Lion’s has both A1 and A2 variants.

In a statement, a Lion spokeswoman said the company believed A2’s marketing represented that A2 products provided health benefits that regular milk would not and was in breach of section 18 of Australian Consumer Law by making unsubstantiated claims.

“Lion is particularly concerned about the A2 Milk company's broad marketing claims that suggest that consuming regular dairy milk can have adverse health consequences compared to a2 milk.  At Lion we believe all regular dairy milk is good for you. 

“Lion is confident that its own marketing activity for the Dairy Farmers and Pura white milk brands is transparent and provides consumers with accurate information about the proteins in its fresh white dairy milk products.”

A2’s chief executive Australian and New Zealand, Peter Nathan, said the company was still pursuing Lion for alleged misleading and deceptive packaging and advertising.

“We are  confident in prosecuting this case and also welcome the opportunity to promote the important messages we have for consumers about A2 Milk, some of which Lion has challenged.”

Lion’s cross-claim was no surprise, he said.

“The success of our brand is based on consumer experience of A2 branded products that contain only the A2 beta casein protein and not A1, together with strong and developing scientific evidence.”

No hearing date has yet been set.

A2 Milk shares fell 4% on the market today to trade around $1.96 in late afternoon.

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