The dairy giant Fonterra says claims being made by Lewis Road Creamery about anti-competitive behaviour are incorrect.

The boutique dairy company is preparing to take legal action against Fonterra.

One of its founders, Peter Cullinane, said it objected to a deal Fonterra is believed to be negotiating with a supermarket chain, which would leave minimal chiller space for other brands.

Lewis Road also intends to challenge a bottle and label design being used by Fonterra’s premium Kapiti brand, which Mr Cullinane said was very similar to his company’s.

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