Dear CCI Member, 

Lion Dairy & Drinks Business Sale Update 

As a valued customer, I’m pleased to share with you that Kirin and Lion today announced that it has entered into a sale agreement to sell the Dairy & Drinks business to Bega Cheese Limited (Bega). 

We believe Bega, an established dairy and food company with more than 120 years of heritage, is well placed to drive the Dairy & Drinks business forward given its deep dairy capabilities and strong commitment to iconic Australian brands and the local dairy industry. 

This sale includes all the Dairy & Drinks milk, Milk Based Beverages (MBB), yoghurt, juice and water ice brands including our blockbuster brands – Dairy Farmers, Dare, Pura, Masters, Farmers Union, Yoplait, Berri, Daily Juice, The Juice Brothers and Zooper Dooper. 

It also includes the Dairy & Drinks’ 11 dairy and juice manufacturing sites in Australia and the Lion Dairy & Drinks’ International business. The sale also includes the Lion Dairy & Drinks’ share of the joint ventures Vitasoy Australia Products (Vitasoy) and Capitol Chilled Foods Australia (CCFA), as well as its minority shareholding in Made by Cow and the Dairy & Drinks’ licensing agreement for the Yoplait brand in Australia and South-East Asia. 

The sale is unconditional, including no further regulatory approvals required and is expected to be completed in early 2021. 

There are no immediate impacts on your business expected as a result of this announcement – we will continue to uphold all existing agreements. 

Your contract with Lion Dairy & Drinks continues on a business as usual basis. Ensuring continuity of supply, quality and service to our customers and consumers are priorities for us as we finalise the sale. 

We anticipate working closely with Bega to ensure a smooth transition of our Dairy & Drinks operations as the sale moves closer to completion. 

As the sale transaction progresses we will continue to keep you update, consistent with our usual process. 

Our team that serves you today will continue to be your best contact moving forward so please don’t hesitate to get in touch with your Lion Dairy & Drinks representative or contact Darryn Wallace the Lion Dairy & Drinks Commercial Director if you have any questions. 

We thank you for your ongoing support and look forward to working with you as we transition to our new owner. 

Kind regards, 

Kathy Karabatsas 

Managing Director, Lion Dairy & Drinks