Lewis Road Creamery will not pursue part of its legal action against Fonterra because it says a deal between the dairy giant and supermarkets does not include premium brands.
Lewis Road Creamery founder Peter Cullinane earlier this month accused Fonterra of negotiating a "greedy" deal with supermarkets which would limit the ability of smaller dairy brands to get space in the chiller.
At the time a representative for the Countdown supermarket chain said it was not involved in any deal with Fonterra, while Foodstuffs said agreements were confidential.
Cullinane today said lawyers for both sides had found a resolution and had confirmed the deal excluded premium milk products. That means smaller competitors such as Lewis Road would be afforded a reasonable amount of chiller space, allowing them to remain competitive with the milk giant, he believed.
"It's a fantastic result before Christmas, to have cleared this up," Cullinane said. "We are delighted."
