Brownes Dairy eyes strategic sale in 2026

Australia – Australia’s oldest dairy company, Brownes Dairy, is preparing to seek buyers or investors in 2026 following a loan default by its Chinese parent company.

Brownes was sold by Archer Capital, which bought it in 2011, to Australia Zhiran Co. in 2017, a vehicle backed by a consortium that also included investment firm Changchun Lianxin Investment Consulting Company. Mengniu Dairy was one of the key lenders in that acquisition.

Despite the uncertainty, Brownes Dairy remains operational and committed to its future.

CEO Natalie Sarich-Dayton emphasized the company’s resilience and its readiness to partner with a visionary investor who can support its long-term growth.

She noted that Brownes has changed hands five times over the past two decades and is now focused on securing stability and strategic direction.

The search for new buyers is expected to begin next year, with Brownes aiming to attract interest from parties aligned with its values and ambitions.

Brownes Dairy faces sale as Mengniu calls in US$200M loan

According to a report by The Australian Financial Review in April, Brownes Dairy was put on the block after China’s Mengniu Dairy Co. called in a US$200m loan.

Its operations, centered at processing plants in Balcatta and Brunswick Junction, collect over 150 million liters of milk annually from more than 50 local dairy farms.

Mengniu Dairy, one of China’s largest dairy firms, provided the US$200 million loan to Australian Zhiran, a consortium-led entity that acquired Brownes in 2017 from private equity firm Archer Capital. 

The sale process, managed by insolvency firm McGrathNicol, was initiated after Australian Zhiran failed to meet loan obligations. 

Keith Crawford of McGrathNicol stated, “We are engaging with key stakeholders to commence an orderly sale process for the iconic Brownes Dairy.” 

He emphasized that the receivership is limited to the holding company’s shares, ensuring no disruption to daily operations.

Brownes Dairy’s chief executive, Natalie Sarich-Dayton, reassured stakeholders that the company remains financially robust. 

“Brownes is a very profitable business, and we are cash positive. There is absolutely no risk to our operations here,” she said.

 While praising the current ownership, Sarich-Dayton expressed enthusiasm for potential Australian buyers, noting that local ownership would be “wonderful for our brand and business.”

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE