RIP King Island Dairy as 100-year-old facility and cheese brand to end, costing jobs

It’s long been the perfect accompaniment to a glass of wine but century-old King Island Dairy cheese from the middle of Bass Strait is coming to an end, a victim of supermarket competition.

A slab of King Island cheddar which will vanish from supermarket shelves.

Long a mainstay of any respectable cheese platter to go with a glass of wine, KingIsland Dairy in Bass Strait has succumbed to intense supermarket competition and will be killed off by its Canadian owners.

The decision, costing almost 60 jobs where work is hard to come by, is the latest in a long line to enter the museum of once famous, but now deceased, Australian brands.

Once owned by a Japanese brewer and before that listed on the Australian Stock Exchange, King Island Dairy was synonymous with gourmet cheeses as well as helped to educate Australians about the wider varieties available, when so many weren’t prepared to venture beyond a perhaps boring block of cheddar.

And although many Australians might have a nostalgic love of the brand, that hasn’t been mirrored in its sales.

Canadian dairy giant Saputo has announced it will end processing dairy products on King Island, between Tasmania and Victoria, as well killing off the 100-year old King Island Dairy brand following a strategic review of the business that failed to find a buyer.

The decision will threaten the future of 58 jobs, the company said.

King Island Dairy cheese has a loyal following but insufficient to make it financially viable.

King Island Dairy has had a volatile ownership history over the past three decades as it was passed around from company to company in a corporate version of “pass the parcel”. A number of food conglomerates bought the brand promising ambitious plans only to dump it on the next buyer.

In 2001 King Island was listed on the ASX. It was sold to National Foods for just under $100m, which then sold the cheesemaker to Japanese brewing giant Kirin.

After failing to turn a decent profit on the business Kirin sold it to Canada’s Saputo in 2018 – along with brands Farmers milk and Farmers Union yoghurt.

The King Island Company cheese executives Mark Holcombe and Ray King in 1999 before its sale to National Foods.

Saputo Dairy Australia (SDA) said on Thursday it had made the difficult decision to commence the final operating season of King Island Dairy, with the intention of closing the facility and retiring the brand in mid 2025.

“Over the past 10 months, SDA has sought to maximise value for the business by conducting an intensive review of all commercial and financial alternatives for King Island Dairy, including a potential sale to a third party,” the dairy giant said in a statement.

The company said its immediate focus would be to work with its King Island employees, dairy farmers and the broader King Island community to support them through the transition period.

Saputo president and chief operating officer (International and Europe) Leanne Cutts said the decision had not been taken lightly.

“As King Island Dairy’s historic roots are deeply embedded in the region, it was hoped the strategic review would identify a potential buyer for the facility,” she said.

“It is a unique brand, with a plant that is nearly 100 years old and designed to produce handmade specialty cheeses.

“We have invested more than $40m in all our Tasmanian operations over the past five years. While our other Tasmanian brands such as Mersey Valley and Tasmanian Heritage are thriving, and King Island Dairy products hold a nostalgic place in the hearts of Australians, the brand has not maintained its position in today’s ultra-competitive food industry.”