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Tasmanian Heritage

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Bega Dairy & Drinks
Company typeDivision
IndustryDairy and juice products
PredecessorNational Foods, Lion Dairy & Drinks
Founded1991
FateAcquired by Bega Group in November 2020
Headquarters
Australia
Area served
Australia, New Zealand, Malaysia, Indonesia
ProductsMilk, yoghurt, cream, dairy desserts, juices, specialty cheeses
Number of employees
3500 (2005)
ParentBega Group

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. Prior to 2009, it was identified as National Foods and later traded as Lion Dairy & Drinks under Kirin’s ownership. It ranks among Australia’s foremost producers of dairy and juice products.

A significant growth milestone was reached in 2008 with the purchase of Sydney-based Dairy Farmers, a brand that continues to be marketed for fresh and long-life milk, yoghurt, and flavoured milk mainly across New South Wales and Queensland. BDD’s portfolio focuses on dairy and juice items such as milk, yoghurt, cream, dairy desserts, juices, and specialty cheeses, securing a dominant market share over many years.

History

National Foods originated in 1991 when the Adelaide Steamship Company consolidated several long-established dairy and food enterprises. In 2004, the Philippine conglomerate San Miguel Corporation acquired National Foods for $1.8 billion, outbidding New Zealand’s Fonterra. The following year, National Foods regained full control of Berri Ltd., merging to become Australia’s top citrus and fruit processor, responsible for packaging around half of the country’s fruit juice beverages. At that time, the company employed approximately 3,500 personnel across 20 manufacturing sites in Australia and New Zealand.

In November 2007, Japan’s Kirin Holdings purchased National Foods from San Miguel for $3.1 billion, making it a wholly owned subsidiary. The company expanded its footprint by acquiring Dairy Farmers in 2008. After Kirin’s acquisition of Lion Nathan in 2009, National Foods merged with Lion Nathan to create "Lion Nathan National Foods." This entity was divided into two segments—Lion and Lion Dairy & Drinks—in 2011.

In 2015, Warrnambool Cheese and Butter, a Saputo Inc. subsidiary, acquired part of Lion Dairy & Drinks’ cheese division including brands such as Cracker Barrel and COON for AUD 137.5 million.

China’s Mengniu Dairy reached an agreement in November 2019 to buy Lion Dairy from Kirin for roughly A$600 million; however, Australian Treasurer Josh Frydenberg blocked the transaction citing national interest concerns, leading to its collapse in August 2020. Subsequently, Bega Cheese acquired the business for A$534 million in November 2020.

In February 2023, Bega announced it would shut down its milk and yoghurt production facility in Canberra, centralizing processing operations at its Penrith location.

BDD maintains processing plants throughout Australia including sites in 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).

As a leading Australian milk producer with its flagship Pura brand, BDD holds a strong presence within both fresh dairy and juice sectors. By 2007, National Foods controlled nearly half of the flavoured milk market nationally through Big M; its Farmers Union Iced Coffee notably surpasses Coca-Cola sales within its category. Other prominent brands under its umbrella include Yoplait, Frûche, Divine Classic, YoGo, Farmers Union as well as premium specialty cheeses marketed under King Island Dairy, South Cape, Tilba, Timboon, and Clover Creek.

Key Company Achievements

  • 1991 – Achieved listing on the Australian Stock Exchange;
  • 1992 – Purchased United Dairies, a dairy firm based in New South Wales;
  • 1994 – Acquired Masters Dairy located in Western Australia;
  • 1995 – Obtained Australian licensing rights for the French brand Yoplait; sales commenced in 1996;
  • 1999 – Pura established as Australia's inaugural national 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 supermarket contract for private label milk products;
  • 2005 – Became part of San Miguel Corporation and merged with its subsidiary Berri Limited;
  • 2006 – Added specialty cheese producer Lactos Pty Ltd to 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 authorization to fully acquire Lion, leading to formation of "Lion Nathan National Foods";
  • 2011 – Lion Nathan National Foods rebranded as Lion and Lion Dairy & Drinks;
  • 2021 – Bega Cheese completed acquisition of Lion Dairy & Drinks.

Brands

Bega Dairy & Drink manages 24 principal production sites across Australia, New Zealand, Malaysia, and Indonesia. Its portfolio features key brands such as:

Brand Area Served 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

Industrial Relations

In October 2009, National Foods provided evidence before an Australian Senate inquiry following concerns raised by the Tasmanian Farmers and Graziers Association. The association claimed that Tasmanian dairy farmers were compensated at only 29 cents per litre for milk—approximately 10 cents less than the cost of production.

External links