Arla does not appeal against the verdict
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- 24 February 2006
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Going forward, Arla decides not to appeal against the verdict in the competition case.
"We wish to devote our energy to improving relations with the smaller Danish dairies and running our business rather than spend time in court," says Managing Director, Peder Tuborgh, Arla Foods. "The affair has dragged on for two years and we have decided that now is the time to put it behind us," Peder Tuborgh said in a statement. "Consequently, in order to avoid further legal procedures, we have decided not to appeal against the verdict."
"Although we were disappointed with the verdict, we take note of the fact that the court's decision relates to an isolated incident and that no-one has questioned our general business practices and overall strategies," Peder Tuborgh commented.
In its decision on February 10, Århus City Court decided that, during a meeting at the wholesale chain Metro, two Arla sales representatives had made a marketing subsidy of DKK 200,000 conditional upon Metro terminating its business with Hirtshals Co-operative Dairy. Although the prosecution had demanded a fine in excess of DKK 30 million, the judge set the fine at DKK 5 million.
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.