Kirin considers sale of Lion Dairy and Drinks
Lion Dairy and Drinks produces, markets and distributes products across Australia in the milk, dairy, beverages, cheese, yogurt, juice and soy categories. Its brands include Dairy Farmers and Pura milk, Masters, Big M flavored milk and plant-based milk Vitasoy. Each year it purchases around one billion litres of milk from more than 550 Australian dairy farmers, and crushes around 75,000 tonnes of fruit from orchards across the country.
Since the launch of its ‘Turnaround Program’ in 2014, Lion Dairy and Drinks has been restructured and delivered ‘significant improvements’ to profitability, says a statement from Kirin Holdings Company Ltd and its subsidiary Lion Pty Ltd.
“Having delivered this improved business performance and re-positioned the business for growth, it is appropriate at this point in time to consider the best pathway forward to maximize its sustainable growth potential for the future.
“Under these circumstances, Kirin and Lion will give consideration to all potential options for Lion-Dairy and Drinks, including retaining and investing in the business and a sale of Lion Dairy and Drinks.
“No decision has been made at this time, but we will move forward to complete the strategic review and make an announcement once an outcome has been reached.”
Kirin subsidiary Lion is one of Australasia’s largest food and beverage companies, employing around 6,700 people across Australia and New Zealand, and with overall revenues of around A$5bn (US$3.6bn) a year. Lion Dairy and Drinks is one of four divisions: alongside XXXX maker Lion Beer Australia, Lion Beer, Spirits and Wine New Zealand, and Lion Global Markets.
