Bega Dairy & Drinks
| Company type | Division |
|---|---|
| Industry | Dairy and juice production |
| Predecessor | National Foods |
| Founded | 1991 |
| Founder | Adelaide Steamship Company (established National Foods) |
| Fate | Acquired by Bega Group in November 2020 |
| Headquarters | Not specified , Australia |
Area served | Australia, New Zealand, Malaysia, Indonesia |
Key people | Not specified |
| Products | Milk, yoghurt, cream, dairy desserts, juices, specialty cheeses |
Number of employees | 3500 (as of 2005) |
Bega Dairy & Drinks (BDD) operates as a division of the Australian diversified food enterprise, the Bega Group, having been acquired from the Japanese firm Kirin in November 2020. Previously identified as National Foods until 2009 and subsequently as Lion Dairy & Drinks during Kirin’s ownership, it stands as a prominent entity within Australia’s dairy and juice sectors.
A notable growth milestone occurred in 2008 with the purchase of Sydney-based Dairy Farmers, a brand that continues to be associated with fresh and long-life milk, yoghurt, and flavoured milk products predominantly distributed throughout New South Wales and Queensland.
BDD’s core focus lies in dairy and juice offerings, including milk, yoghurt, cream, dairy desserts, juices, and specialty cheeses, sustaining a robust market position over many years.
History
National Foods was established in 1991 by the Adelaide Steamship Company through the amalgamation of several longstanding dairy and food enterprises.
In 2004, the Philippine conglomerate San Miguel Corporation outbid New Zealand’s Fonterra to acquire National Foods for A$1.8 billion. Following this acquisition, San Miguel regained full control of Berri Ltd. in 2005 and integrated it with National Foods, creating Australia’s largest processor of citrus and fruit products, responsible for packaging approximately half of the nation’s fruit juice beverages. This expansion resulted in a workforce of 3,500 employees operating across 20 manufacturing facilities in both Australia and New Zealand.
In November 2007, San Miguel divested National Foods to Japan’s Kirin Holdings for A$3.1 billion, making it a wholly owned subsidiary.
In 2008, National Foods expanded its portfolio by acquiring Australian dairy firm Dairy Farmers. The following year, Kirin combined National Foods with Lion Nathan to establish "Lion Nathan National Foods." By 2011, this entity was reorganized into two separate divisions: Lion and Lion Dairy & Drinks.
In 2015, Warrnambool Cheese and Butter, a subsidiary of Saputo Inc., purchased segments of Lion Dairy & Drinks’ cheese operations—including the Cracker Barrel and COON brands—for A$137.5 million.
In November 2019, China’s Mengniu Dairy reached an agreement to acquire Lion Dairy from Kirin for roughly A$600 million; however, this transaction was blocked by Australian Treasurer Josh Frydenberg and ultimately fell through in August 2020.
Following this, Bega Cheese completed the acquisition of the business in November 2020 for A$534 million.
In February 2023, Bega announced it would cease operations at its Canberra milk and yoghurt manufacturing site, consolidating production activities at its Penrith facility.
As of early 2021, Bega Dairy & Drinks maintains processing plants across multiple Australian states: Victoria (Chelsea Heights, Morwell), New South Wales (Baulkham Hills, Penrith, Hexham), Queensland (Crestmead), South Australia (Jervois, Clarence Gardens), Western Australia (Bentley), and the Australian Capital Territory (Canberra).
The company is a leading milk producer under its flagship Pura brand and holds a dominant position in fresh dairy products and juices. It commands nearly half of the national flavoured milk market through its Big M brand. Among its notable products is Farmers Union Iced Coffee—one of only three soft drinks that outsell Coca-Cola within its category. Additional prominent brands include Yoplait yoghurt, Frûche, Divine Classic, YoGo, and Farmers Union dairy goods. Bega also manufactures premium specialty cheeses marketed under labels such as King Island Dairy, South Cape, Tilba, Timboon, and Clover Creek.
Key Company Achievements
- 1991 – Commenced trading on the Australian Stock Exchange;
- 1992 – Purchased United Dairies, a dairy business based in New South Wales;
- 1994 – Acquired Masters Dairy located in Western Australia;
- 1995 – Obtained Australian licensing rights for the French brand Yoplait; commenced sales the following year;
- 1999 – Launched Pura as Australia's inaugural nationwide milk brand;
- 2000 – Took ownership of the Big M brand;
- 2001 – Entered the specialty cheese sector through acquisition of King Island Dairy;
- 2002 – Secured first national contract for supermarket private label milk supply;
- 2005 – Became a subsidiary of San Miguel Corporation; integrated with San Miguel's Berri Limited;
- 2006 – Added specialty cheese producer Lactos Pty Ltd to its portfolio;
- 2007 – Acquired by Kirin Holdings Company, Limited;
- 2008 – Initiated plans to acquire Dairy Farmers under Australian Co-operative Foods Limited;
- 2009 – Kirin Holdings received approval to fully acquire Lion, establishing "Lion Nathan National Foods";
- 2011 – Rebranded Lion Nathan National Foods as Lion and Lion Dairy & Drinks;
- 2021 – Lion Dairy & Drinks was purchased by Bega Cheese.
Brand Portfolio
Bega Dairy & Drinks manages 24 principal facilities, including 19 in Australia, one in New Zealand, two in Malaysia, and two in Indonesia. Prominent brands encompass:
| Brand | Market Area | Product Type |
|---|---|---|
| The Complete Dairy | Australia-wide | Milk |
| Pura Milk | South Australia, Victoria, Tasmania, Northern Territory | Milk |
| Dairy Farmers | New South Wales, Queensland | Milk, Yogurt |
| Big M | Nationwide excluding Western Australia | Flavored Milk |
| Dare Iced Coffee | Nationwide | Flavored Milk |
| Farmers Union | Nationwide | Iced Coffee, Yogurt, Flavored Milk |
| Masters | Western Australia | Milk, Flavored Milk |
| King Island Dairy | Nationwide | Cheese |
| Tasmanian Heritage | Nationwide | Cheese |
| Yoplait | Nationwide | Yogurt |
| Berri Ltd. | Nationwide | Juice |
| Daily Juice | Nationwide | Juice |
| The Juice Brothers | Nationwide | Juice |
| Vitasoy | Nationwide | Soy Milk, Oat Milk, Rice Milk |
| YoGo | Nationwide excluding Western Australia | |
| Zooper Dooper | Nationwide |
Labor Relations
In October 2009, National Foods provided testimony before an Australian Senate inquiry regarding milk pricing. This followed concerns raised by the Tasmanian Farmers and Graziers Association that the company compensated Tasmanian producers at 29 cents per litre—approximately 10 cents less than production expenses.