Lion’s dairy sell-off dumps three Tassie businesses

THREE Tasmanian businesses employing 500 people are part of the sale of Lion Dairy and Drinks.

Lion, controlled by Japanese parent company Kirin, on Wednesday announced the de- cision to sell its dairy division.

The operations on the block include Pura milk processing operations at Lenah Valley, a specialty cheese site in Burnie called Heritage and a cheese site and farm on King Island.

The sale does not include the Boags Brewery in Launces- ton. Lion has owned the assets for 10 years.

Lion chief executive officer Stuart Irvine said Lion Dairy and Drinks had been transformed over the past three years and now had a sound platform for future growth.

But Mr Irvine said the dairy business needed more capital, so selling it was the best option to move forward.

“It’s clear from the further work done in recent weeks that LDD’s strategy to more fully leverage growing consumer wellness trends will require new capabilities and capital in- vestment,” Mr Irvine said.

“The sale process will focus on finding the right owner to take LDD forward and unlock its full potential.”

Mr Irvine said the remainder of Lion’s operations — the mostly alcohol businesses — had avenues for growth and would be retained.

He said sale proceeds from LDD would provide the capital to accelerate investment in the non-dairy businesses.

Lion’s dairy brands include Pura Milk, Dairy Farmers, Big M, Dare and Vitasoy.