McCormick in Dispute with Joint-Venture Rice Partner

McCormick in Dispute with Joint-Venture Rice Partner

Two large food companies are locked in an international dispute.

In 2011, U.S. spice giant  McCormick & Co., and Kohinoor Foods Limited, India entered into a JV – Kohinoor Specialty Foods India Ltd – with an agreement of rice supply for 7 years and a lock-in period of 5 years.  In 2015: The Indian partner  has accused McCormick of procuring supplies from elsewhere. McCormick denies it has broken the venture agreement but has confirmed that it has sought to end the joint venture. “We have not violated any contractual or any statutory obligations with Kohinoor Foods Ltd,” the venture told just-food in a statement. “We have served a notice to terminate our agreement to Kohinoor Foods Ltd. In view of the provisions of the said contracts relating to confidentiality and restrictions on public announcements, which bind both parties, we are unable to make any further specific comments.”

In their reply Kohinoor Foods Limited said that they had established that the agreement had been breached “by the Kohinoor Specialty Food [the joint venture] by sourcing supplies from an alternate supplier, during the lock-in period. We have also stated that since Kohinoor Specialty Food [the joint venture] has violated the RSA without cause and without giving due notice as provided in RSA, Kohinoor Foods Limited may also be treated free from the provisions of various agreements. In this regard we are taking all necessary steps to protect the interest of the company,” Kohinoor Foods Limited told the Bombay Stock Exchange.


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