Legal battle resurfaces for Yowie over candy wrapper
Health & Biotech
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The battle of the candy wrappers continues for chocolate maker Yowie.
The Aussie chocolate maker (ASX:YOW) today revealed it had been issued a summons in a civil suit lodged by its former manufacturer Whetstone Industries.
At the crux of it all is a wrapping machine and a legal back-and-forth that dates to 2016.
In short, the company has fielded several cases in relation to the wrapper itself and the process behind it – celebrating the return of the equipment at the end of last year.
But now, the debate has reared its head again.
Yowie has now been served a summons to the US District Court.
“The company does not believe any material payments would be made as a result of this case. The Company will incur ongoing legal costs, however, due to inherent uncertainties, no accurate quantification of any cost, or timing of such cost, which may arise from the legal proceedings can be made.
“The company is confident in its legal position and will defend the action.”
Shares in the company were trading at 11c on Thursday.
It comes as another blow for the company as it tries to turn its operations around.
Yowie admitted in January that a much-vaunted North American expansion wasn’t going to plan due to higher competition and hesitation among retailers to commit to another low-cost confection product.
Yowie chief Bert Alfonso quit as the company cut sales growth from 55 per cent to 17 per cent.