Rory Macleod,the chief executive of ASX-listed Freedom Foods,at the company's China headquarters in Shanghai.Credit:Michael Smith
The almond milk products are available at Woolworths,Coles and Foodworks in Australia as well as other outlets. The Almond Breeze brand is also popular in cafes. Freedom Foods,which counts the billionaire western Sydney-based Perrich clan as its majority shareholder and three members of the family as directors,has had a distribution contract with Blue Diamond since 2011. Blue Diamond sells over $US1.5 billion ($2.18 billion) in almonds globally each year.
However,Blue Diamond alleges Freedom’s subsidiary Freedom Financing stopped paying Blue Diamond the full amount of its invoices from July last year. It alleges the shortfall in payments is"at least"$US7.87 million ($11.3 million). It is seeking that amount,plus interest and costs. It has also asked that a receiver be appointed to Freedom Financing to trace the assets of Freedom Financing.
"Demand has been made for payment of that sum,but Freedom Financing has refused to pay it,"court documents say.
Blue Diamond believes Freedom Financing continued to accept delivery of Blue Diamond’s products while allegedly,according to court documents,"funnelling much,if not all,of its cash upstream to Freedom Group and/or elsewhere within Freedom Group's family of companies".
Demand has been made for payment of that sum,but Freedom Financing has refused to pay it.
Court documents filed by Blue Diamond.
Freedom paid a 3.25 cents final dividend in December,equivalent to around $8.8 million.
"Blue Diamond is informed and believes and,on that basis,alleges that some or all of the funds Freedom Group used to underwrite a December 2,2019 stock dividend payment to its shareholders came from monies Freedom Financing previously funnelled to Freedom Group,instead of remitting it to Blue Diamond,"Blue Diamond alleged in court documents.