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It said New Image had been a manufacturer of dairy products for export from New Zealand for more than 20 years, its manufacturing plants were fully compliant with New Zealand Food Safety Authority requirements and it was a registered exporter.
Maori Party co-leader and Associate Health Minister Tariana Turia had initially criticized Kiaora for the use of Maori imagery and words, and said further investigation had raised questions over the food safety and compliance with consumer standards.
The logo on the formula's tin is of a Maori woman and "heitiki" refers to Maori carved jewelry.
The New Zealand Food and Grocery Council had also called for a full investigation of the company by regulators.
Chief executive Katherine Rich issued a statement Monday, saying the council would highlight some of Kiaora's claims, such as the company saying it was "dedicated to sourcing and providing Kiwi mums with the best and healthiest infant formula available," that "many New Zealand parents are using Kiaora infant formula" and that its products "have become the new standard in New Zealand. "
"It's hard to fathom how Heitiki is the 'new standard' when scan data shows New Zealand and Australian supermarkets do not sell the product at all," said Rich.
Heitiki prices -- with some tins up to 169 NZ dollars (139 U.S. dollars) -- were exorbitant when compared to similar products available in New Zealand supermarkets ranging in price from 18 to 25 NZ dollars a tin, she said in the statement.