News Releases

8 November 2023

Today, Saputo Dairy Australia (SDA) makes new announcements in line with the Optimise and Enhance Operations pillar of Saputo Inc.’s Global Strategic Plan:

• after careful consideration, SDA will undertake a strategic review of its King Island Dairy facility in Tasmania; and
• SDA has committed an additional $27 million towards improvement projects across its sites in Victoria and Tasmania, commencing this fiscal year.

SDA intends to keep its King Island Dairy operations running at regular capacity while it assesses possible future scenarios to maximise value for the King Island Dairy business. With the assistance of its advisors, MA Moelis Australia, the review will consider a range of strategic, commercial and financial alternatives, including a potential sale to a third party so the facility can continue to make its award-winning products for the long term. Approximately 63 employees that work at the facility have been informed of the strategic review and site management will work closely with them throughout the process.

Alongside this strategic review, SDA will continue a series of investments across its Victorian and Tasmanian sites. To further enhance the company’s network efficiency and capability, and reduce its operating costs, SDA is investing an additional $27 million in new capital projects, including $8 million to improve its climate, water and waste performance.

“In making these investments and strategic decisions, we remain focused on maximising our return for every litre of milk to further enhance SDA’s position as a high-quality, low-cost processor in Australia,” said Leanne Cutts, President and Chief Operating Officer (International and Europe) of Saputo Inc. 

“As King Island Dairy’s historic roots are deeply embedded in the region, we hope to find a buyer for the facility to ensure the continued success of its renowned specialty cheese products. We recognise the potential impact any decision may have on the King Island community, especially our employees and dairy farmers, and we are committed to thoughtfully considering all possible scenarios before any decisions are made. 

“This announcement builds on SDA’s previously confirmed consolidation initiatives that aim to align our manufacturing footprint with our current and future expected milk intake, which is already delivering higher utilisation through our facilities, while increasing efficiency and reducing operating costs.

“Once completed, this strategic review of King Island Dairy will conclude our current challenge to strengthen our competitiveness by proactively adapting our manufacturing footprint to align with the changed dairy industry landscape and deliver on our vision for long-term success in Australia.”

- Ends -

MA Moelis Australia Contact: Brodie Treloar (brodie.treloar@moelisaustralia.com) and Richard Draper (richard.draper@moelisaustralia.com)

 

Media Inquiries: sda.communications@saputo.com

 

NOTES TO EDITORS

About King Island Dairy

With a legacy spanning more than 100 years, King Island Dairy is one of Australia’s premier specialty cheese manufacturers, producing a wide range of high-quality blue, cheddar, brie and camembert specialty cheese products. The island’s unique microclimate of mineral rich soils, cool annual temperatures, abundant rainfall and consistent salt spray results in incredibly lush pastures for cows to graze on, producing a sweet and unusually rich milk. The milk, sourced from just a handful of local island farms, is delivered fresh to the specialty cheese manufacturing plant every day where dedicated cheesemakers begin the age-old practice of cheese making, with many of the specialty cheeses being carefully turned and wrapped by hand. Visit: www.kingislanddairy.com.au for further information.

About Saputo Dairy Australia

Saputo Dairy Australia produces, markets and distributes a wide range of high-quality dairy and non-dairy products for the domestic and international markets including cheese, dairy alternative cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Saputo is a leading dairy processor in Australia and is part of Saputo Inc., one of the top ten dairy processors in the world. Saputo Dairy Australia products are sold in several countries under well-known brand names such as Caboolture, CHEER™, Cracker Barrel*, Devondale, Great Ocean Road, King Island Dairy, Liddells, Mersey Valley, MG Ingredients, Mil Lel, Sheese, South Cape, Sungold and Tasmanian Heritage. Visit us online:

www.saputodairyaustralia.com.au | www.saputo.com

 

*Cracker Barrel is a registered trademark of Lactalis Heritage Dairy used under licence.