King Island Dairy secures new ownership

AUSTRALIA – Saputo Dairy Australia (SDA) has entered into a binding agreement to sell its King Island Dairy business to King Island Dairy, a newly formed entity led by experienced Australian businessmen Nicholas Dobromilsky and Graeme Wilson.

This transaction ensures the preservation of approximately 60 jobs on King Island and safeguards the future of the iconic cheese brand.

The sale encompasses the King Island Dairy facility, the brand, the on-site cheese store, and two local farms that provide a guaranteed milk supply.

This comprehensive acquisition aims to maintain the dairy’s operations and its renowned specialty cheese products.

The journey to this agreement began in September 2024, when SDA announced plans to close the century-old King Island Dairy by mid-2025, citing changing industry conditions and a highly competitive market.

This announcement raised concerns about the future of the island’s economy and the livelihoods of its residents.

In response, SDA collaborated with the Tasmanian Government to explore alternative solutions. 

Gerard Lourey, SDA’s Director of Operations and Supply Chain, acknowledged the complexity of the process but emphasized the company’s commitment to finding a suitable buyer dedicated to continuing manufacturing operations and preserving local jobs. 

“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite Cheese Store, and two local farms that provide a guaranteed milk supply,” Lourey stated.

The identities of the new owners have been confirmed through the Australian Securities and Investments Commission, which lists Melbourne businessmen Nicholas Dobromilsky and Graeme Wilson as directors of King Island Dairy 2 Pty Ltd.

Dobromilsky brings significant experience in corporate finance and is associated with the gardening industry through Garden City Plastics and the cheese industry with Olympus Cheese.

Wilson’s background complements the venture, though specific details about his expertise have yet to be disclosed.

Local leaders have expressed optimism regarding the sale. King Island Mayor Marcus Blackie praised the development, highlighting the return of the dairy to Australian ownership after 25 years.

“Blessed are the cheesemakers,” he remarked, quoting Monty Python’s Life of Brian. He also emphasized the need for an entrepreneurial revamp to ensure the brand’s longevity.

Tasmanian Premier Jeremy Rockliff welcomed the announcement, noting the importance of keeping the dairy in Australian hands for the local economy. 

He had previously expressed disappointment over the planned closure and committed to seeking new operators and providing support.

The transaction is expected to be completed by mid-year, with all impacted employees offered the opportunity to transfer their employment to the new owners, ensuring a seamless transition and continuity of operations.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE