Foreign firm ‘called out’: Killing Aussie icon

A state government has threatened to nationalise a well-known Australian brand, accusing the current owners of wanting to shut it down.

A foreign manufacturer is being accused of doing the dirty on an Aussie food icon and wanting to shut the brand down rather than allow it to be sold and potentially prosper under a new owner.

The Tasmanian government has now said it may nationalise the company in order to keep the 120-year-old Australian brand going.

“We do not call out this behaviour lightly, but we will not stand idly by while a global company welshes on its responsibility to work with the government for the benefit of Tasmania,” Tasmanian Liberal Premier Jeremy Rockliff told The Australian.

The drama surrounds King Island Dairy, whose bries, creamy camemberts and sharp cheddar cheeses are stocked in supermarkets across Australia.

In 2019, Canadian cheese and dairy giant Saputo bought King Island Dairy and combined it with its existing Australian operations which also included Cheer, Devondale, Liddell’s and Mersey Valley cheeses.

King Island Dairy is owned by Canada’s Saputo.

But in September, Saputo announced that King Island Dairy would no longer operate from mid-2025.

The diary employs 58 people and is the single biggest employer on the island which only has a population of 1600.

The Montreal based firm said it made the decision to retire the brand after it was unable to find a buyer.

At the time Saputo Dairy Australia (SDA) president Leanne Cutts said the decision to close the brand “had not been taken lightly”.

“After thoroughly reviewing every possible option, closure of the facility was determined as the most viable way to strengthen SDA’s competitiveness based on changing industry and market conditions,” Ms Cutts said.

Saputo Dairy Australia is in the spotlight over the sale of King Island Diary. PICTURE: ZOE PHILLIPS

‘Increasingly concerned’

However, the Tasmanian government suspects Saputo hasn’t tried hard enough to sell off King Island Dairy as a going concern and is instead determined to close it down and remove a potential competitor from the market.

It said last week that it was “increasingly concerned,” Saputo wasn’t committed to the process.

Saputo brands such as South Cape and Tasmanian Heritage sell similar products to King Island Dairy and might benefit if there were less brands in the market.

The government said Saputo’s preferred buyer only wanted to buy one of King Island’s two dairy farms and that raised questions about how long a smaller operation would remain feasible.

Tasmanian Premier Jeremy Rockliff. Picture: Nikki Davis-Jones

Tasmanian Senator Jacqui Lambie has also been critical of Saputo’s antics.

“We see time and time again multinationals, god damn them, buying into our Tasmanian companies … only for them to turn their backs on the locals before much longer,” ABC reported her as saying.

Now, the Tasmanian Government has said it could temporarily nationalise King Island Dairy and restart the sale process.

“All options are on the table to ensure the best outcome for the King Island community and to support the continuation of King Island Dairy’s operations,” Mr Rockliff said.

“Government has sought legal advice on a range of options available to ensure the best outcome is secured.”

King Island only has 1600 inhabitants and King Island Dairy is its biggest employer. Photo: Supplied

Mr Rockliff believes the right buyer could ensure the long term survival of the premium cheese business. That would save a Tasmanian brand seen across Australia as well as keeping a vital employer on the island.

The threat appears to have had some impact with Saputo apparently re opening negotiations with potential buyers.

“Saputo has listened to our concerns and re-engaged other interested parties,” Mr Rockliffe said.

“We will continue to work with Saputo to secure a new owner who values the brand’s legacy and importance to King Island and Tasmania.”

News.com.au has contacted Saputo Dairy Australia for comment.

Originally published as Foreign firm ‘called out’: Killing Aussie icon