Dear Sir,

In 2010, Kerry Co-op was unable to pay a dividend because rules set by the financial regulator required the co-op to write down the value of investments which had lost value. In Kerry Co-op’s case, the value of One51 had to be written down by €100m, resulting in the co-op having no reserves. As such, the payment of a dividend to members was illegal. A significant number of shares in Kerry Group plc had to be sold to cover this loss and to create a new reserve.