Orora faces off with Asahi over can contract

Orora has inititated legal proceedings against Asahi Holdings (Australia) after the beer company cancelled a major contract with the packager.

Asahi cancelled its beverage can contract on 18 September, according to court documents, but Orora is yet to state whether the loss of the contract for 1.6 billion cans in Australia and New Zealand will have an impact on its bottom line.

Orora has taken action in the Supreme Court of Victoria, seeking discovery of documentation of Asahi's dealings with other packaging suppliers, according to Fairfax Media.

There are unconfirmed suspicions that Orora was out-bid by rival packager and former Amcor cartel partner Visy Packaging in the contract for Asahi's beer and Schweppes-brand soft drinks.

According to Orora, legal representatives for Asahi told the packager on 29 September it had cancelled a tender process because Asahi's business needs had changed and it did not require supply of the package.

Orora, which has had a business relationship with Asahi since 1987, claimed in its filing it had a final option in its 2002 contract for Asahi not to enter into any future agreement with another party without granting Orora the right to make a counter-offer.

Orora held two six-year contracts with Asahi, one commencing in 2002, and the other in 2008, which was later extended to 2016, according to Fairfax Media.