All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. "We are disappointed with this outcome and will now consider pathways forward.". Receive our latest content delivered right to your inbox. It also knows how interested Bega was previously, and the time it spent getting to understand the up-for-sale business. Both parties were still awaiting approval from Australia's Foreign Investment Review Board, and last week, the, The source told the newspaper that the decision was made due to "diplomatic issues. Last week, the Chinese Commerce Ministry took aim at another industry. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. In a deal first reported by Nikkei, the Japanese brewer has decided to unload Lion Dairy & Drinks, a unit under Lion, which oversees Kirin's operations in Australia and New Zealand. Lion to sell dairy and drinks division Fonterra to exit milk pools, but not Australia New Zealand-owned Fonterra, which is under pressure back home to reduce its debts and rationalise some international activities, is the largest buyer of raw milk and Saputo's closest competitor in Tasmania. Kirin bought the dairy division, including extensive cheese production assets, from Filipino food group, San Miguel Corporation in 2007 for $2.8b. Signs are emerging of a possible sale of the Australia-based Lion Drinks and Dairy business, with China’s Mengniu Dairy said to be in negotiations to buy the business from Japanese owner Kirin. "It is somewhat of a relief to know there is a next step." To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on Lion Dairy & Drinks (LD&D Milk Pty Ltd and LD&D Foods Pty Ltd), is a subsidiary of Australian diversified food company Bega Cheese.. LD&D's factories (which carry the "Pura" branding) are located in: Chelsea Heights, Melbourne; Salisbury, Adelaide; Bentley, Perth; These sites are also printed on the back of all fresh milk bottles in Victoria, South Australia and Western Australia respectively. Tel: Intl +44 (0)1527 573 600. Co-operative chairman and Gympie dairy farmer, Andrew Burnett said the iconic Dairy Farmers brand is now back in Australian ownership. Yesterday, reports that Bega was about to buy Lion Dairy & Drinks were cooled by Kirin, which said a deal was not definite. The Japanese conglomerate confirmed today that Bega has agreed to purchase Lion Dairy & Drinks, which owns the Daily Juice and Berri juice brands. Australia angered China by calling for a coronavirus investigation. Kirin struck a deal in November to divest its Lion Dairy and Drinks subsidiary to China Mengniu Dairy. "The Australian government will work closely with the wine industry to defend these allegations and help ensure we put forward the strongest of possible cases to prevent the application of tariffs or duties on our winemakers.". Kirin Holdings is to sell its Lion Dairy & Drinks business to Bega Cheese for AUD534m (US$393m), marking the company's exit from the non-alcoholic drinks category in Australia and New Zealand. Get the daily beverage news as it happens, Weekly News Summary: Get our weekly best-of roundup, Beverage Research Updates: The sale would have included all white milk, milk-based beverages, yoghurt, juice and water ice brands and assets. ", Frydenberg confirmed Tuesday that he had told Mengniu Dairy "that the proposed acquisition would be contrary to the national interest.". The sale is unconditional, including no further regulatory approvals required and is expected to be completed in early 2021. The deal… "Our partners, Lion, have had international owners for more than a decade," he said. A company part-owned by the Chinese government has been blocked from controlling popular Australian brands such as Pura, Dairy Farmers and Dare flavoured milk. Kirin and Lion know that the company has the financial power and stomach to swallow the portfolio, and shares something of a darling status in Canberra, where its most recent attempt to sell Lion Dairy & Drinks fell over. Dear CCI Member, Lion Dairy & Drinks Business Sale Update . Password. Australian Trade Minister Simon Birmingham last Tuesday rejected claims of wine dumping, saying that he found the accusations "perplexing. But Kirin advised on Tuesday the companies had mutually decided to abandon the deal as they had not secured federal government approval. In a statement, Treasurer Josh Frydenberg said he had been advised the two companies had “mutually agreed to not proceed with the sale process”. Factset: FactSet Research Systems Inc.2018. The proposed $600 million sale of Lion Dairy & Drinks to Chinese owned Mengniu Dairy has fallen through. Disclaimer. The group also said it will invest in growth international markets, particularly in craft beer. Mr Kebbell said DFMC did not share concerns expressed on social and tabloid media about Chinese ownership. The companies then moved to call off the deal. The deal, which was worth about 600 million Australian dollars ($430 million), was first, Some regulators in Australia had already green-lit the deal. Remember me Forgot password? 26 April 2019:- Lion CEO Stuart Irvine today provided an update on the sale of Lion Dairy & Drinks (LDD), including confirmation that Kirin and Lion have reached an agreement to sell LDD’s specialty cheese business to Saputo Dairy Australia (Saputo), for AUD 280 million. Our focus is on the production, marketing, sales and distribution of beer, wine, spirits, cider and ready-to-drink products, as well as a range of non-alcohol beverages. The Japanese company has since boosted the unit's craft beer focus with purchases of Australian breweries including Little Creatures in 2012. The owner of Farmers Union Iced Coffee and a swag of other key local brands has pulled the plug on a deal that would have seen the Japanese company’s wholly-owned Australian dairy firm Lion Dairy & Drinks sold to a Chinese firm. Order products and manage your account online. Hong Kong (CNN Business)China Mengniu Dairy has called off its plan to buy an Australian drinks business for $430 million after the government in Australia said it would likely oppose the deal. The sale of the Lion Dairy and Drinks business to ASX-listed food and dairy company, Bega Cheese, has been well received by the company’s largest supplier group, Dairy Farmers Milk Cooperative (DFMC). You can opt out of individual newsletters or contact methods at any time in the 'Your Account' area. Discover the latest beverage research, I want to hear about beverage industry webinars and relevant offers. "Given this approval is unlikely to be forthcoming at this time, Lion and Mengniu Dairy have mutually agreed to cease the current sale process," Lion Dairy said in a statement. Lion Dairy & Drinks Portal. Australia’s top cheesemaker plans to raise A$401 million in equity to fund the purchase of Kirin’s Lion Dairy & Drinks, the company said. All times are ET. You are agreeing for just-drinks.com to send you newsletters and/or other information about our products and services that are relevant to you by email. +44 (0)1527 573 736 or complete this form.. ©2020 All content copyright just-drinks.com It announced an anti-dumping probe into imports of Australian wine. deal was cancelled in August because of indications Australian regulatory body, took full control of the Lion business in 2009, purchases of Australian breweries including Little Creatures, Spirits (Dark) - On the Rocks, with Amy Hopkins. The Japanese group has reportedly made a decision on the future of the Lion dairy business that had been set for sale to China's Mengniu before … ", "Australian wine is by no means subsidized and by no means sold at or below market rates in the world market," he told reporters. Japanese-owned beverage giant Kirin announced the sale of Lion Dairy and Drinks to Mengniu Dairy last November, pending approvals. Kirin Holdings and Lion have announced an agreement to sell the Dairy & Drinks business to Bega Cheese for A $560 million. Kirin said it will focus on growth areas, particularly for craft beer brands such as Little Creatures. The deal, which was announced last year and had been approved by the Australian Competition and Consumer Commission (ACCC), was to include all LD&D’s white milk, milk-based drinks, yoghurt, juice and water brands and assets. Toll Free from US: 1-866-545-5878. Username. Lion Dairy and Drinks Claims Portal Click Here to Submit Sale or Return Claim Request Click Here to Submit Credit Claim Request For assistance please call LDD Claims on 1800 000 570 or email LDDClaims@lionco.com Mengniu milk products seen on a shelf at a store in Beijing in 2019. In a statement, Kirin said that once the deal is completed, its Oceania Integrated Beverages Business division - which includes Lion Dairy & Drinks and the Lion brewery unit - will focus mainly on beer, wine and spirits across Australia and New Zealand. Today, it released a statement abandoning the deal, over claims approval by the Federal Government was not forthcoming. Under the agreement, Kirin would have offloaded Lion Dairy — an Australian milk and juice business that is home to well-known brands such as Dairy Farmers, Pura and Vitasoy — to Mengniu. Lion Dairy's China sale tipped down drain Business . Under the agreement, Kirin would have offloaded Lion Dairy — an Australian milk and juice business that is home to well-known brands such as Dairy Farmers, Pura and Vitasoy — to Mengniu. The strategy shift follows a protracted sales process for Lion Dairy & Drinks, which was initially tagged for a sale to China Mengniu Dairy Co 12 months ago. Japan's love of lemon sour - A worldwide trend? The ability to copy articles is specially reserved for people who are part of a group membership. Beijing later targeted its exports, namely by suspending some, And recently, reports had surfaced that the Mengniu deal could be scuttled. All rights reserved. Registered Office: John Carpenter House, John Carpenter Street, London, EC4Y 0AN, UK | Registered in England No: 4307068. Update on the sale of Lion Dairy & Drinks On Friday 26 April 2019 Lion CEO Stuart Irvine provided an update on the sale of Lion Dairy & Drinks (LDD), including confirmation that Kirin and Lion have reached an agreement to sell the Lion Specialty Cheese Business to Saputo Dairy Australia (Saputo) on a standalone basis. related to Beer & cider, Mergers & acquisitions, Soft drinks, Water, Kirin, For assistance please call LDD Claims on 1800 000 570 or email LDDClaims@lionco.com The three horses in the race for Kirin's up-for-sale Lion Dairy and Drinks division all ponied up on binding bid day. Lion was “disappointed” with the outcome and would now be looking at other options for the Dairy & Drinks business. Indicative offers for the $500 million-odd Lion Dairy and Drinks – which makes and sells milk-based drinks, yoghurts and juices – landed on Lion and adviser Deutsche Bank's desk a fortnight ago and the … "The Lion Dairy & Drinks business has been for sale for more than a year now," Mr Kebbell said. Clicking above tells us that you're OK with both this and with our privacy policy, terms and conditions and cookie policy. The sale of Lion Dairy & Drinks to Mengniu was approved by the Australian Competition and Consumer Commission earlier this year. The proposed sale was canceled on Tuesday. Fax: +44 (0)1527 577423. Three bids have landed for Lion Dairy and Drinks. China and Australia are involved in a political feud that has spilled over into the business world. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Address: Aroq House, 17A Harris Business Park, Bromsgrove, Worcs, B60 4DJ, UK. Not an online customer? Aroq publishes just-auto.com | just-food.com | just-drinks.com | just-style.com, Sign-up to the just-drinks newsletters and get 'The State of Drinks Industry Social Media' for FREE, Daily Alert: 25 November 2019: Lion CEO Stuart Irvine today announced that Kirin Holdings and Lion have reached an agreement to sell the Lion Dairy & Drinks business to the China Mengniu Dairy Company Limited (Mengniu Dairy) for AUD $600 million. The Australian Competition and Consumer Commission, Australia has angered China by calling for a investigation into the origins of the coronavirus pandemic. SEE LOCATIONS All rights reserved. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. The digitalisation of the supply chain - Focus, The beer category in 2019 - just-drinks' review, The soft drinks category - just-drinks 2020 Review, RTD "exceeded expectations" for Brown-Forman, Diageo launches global search for eco innovators, Pernod's "first of its kind" single malt GTR range, Diageo adds Guinness to first US Roe & Co ads, Whiskey (Spirits) Market in the United States of America - Outlook to 2023: Market Size, Growth and Forecast Analytics, Sustainability - The Most Important Theme for 2020 - Thematic research, United States Spirits - Market Assessment and Forecast to 2023, Opportunities in the Americas Spirits Sector. Published by Aroq Ltd. Most stock quote data provided by BATS. Lion is New Zealand’s largest alcohol beverage company. Hot on the heels of getting a green light to buy Bellamy's Organic for $1.5 billion, China Mengniu Dairy Company has struck a deal to buy Lion's dairy and drinks business for $600 million. Kirin took full control of the Lion business in 2009 after holding a minority stake in the company. Kirin said today the deal with Bega, which is based in New South Wales, does not require approval from the FIRB. Kirin Holdings is to sell its Lion Dairy & Drinks business to Bega Cheese for AUD534m (US$393m), marking the company's exit from the non-alcoholic drinks category in Australia and New Zealand. Lion Dairy & Drinks … Lion, which owns brands including Dairy Farmers, Big M, Pura, Daily Juice and Berri through its dairy and drinks business, said the decision to cease the sale … Japanese drinks company Asahi Group is believed to be in negotiations to buy the remaining assets in the Lion Drinks and Dairy portfolio that is up for sale by its owner, countryman Kirin. The sale includes all white milk, milk-based beverages, yoghurt, juice and water ice brands and assets. The sale of Lion Dairy and Drinks is entering the home straight. On Tuesday 25 August 2020, the Treasurer of Australia announced that the proposed sale of Lion Dairy and Drinks Pty Ltd (Lion Dairy) to China Mengniu Dairy Company Limited (China Mengniu) would not be within Australia’s “national interest”, effectively blocking the transaction. Kirin cancels Lion Dairy & Drinks sale to China Mengniu Dairy Co... Kirin looks for new Lion Dairy & Drinks owner after China Mengniu block - report... Kirin set to offload Lion Dairy & Drinks... Australia puts brakes on Kirin's Lion Dairy & Drinks sale to Mengniu Dairy - report... P.S: If you liked this article, you might enjoy the just-drinks newsletter. That deal was cancelled in August because of indications Australian regulatory body the Foreign Investment Review Board would block the transaction. Why COVID-19 risks further government intervention for drinks - Sustainability Spotlight, Sectors: Beer & cider, Mergers & acquisitions, Soft drinks, Water. The Australian company, Lion Dairy, and its owner, Japanese beverage giant Kirin, both said in separate statements that approval from regulators was "unlikely to" materialize. The deal is expected to close at the end of January. Lion, which has milk processing operations in all states, is selling off its non-brewing and alcoholic drinks business in Australia for its Japanese parent, the giant brewing group, Kirin. The sale brings to an end a two-year struggle by Kirin to offload Lion as part of a broader push to divest underperforming overseas assets and … Now Beijing is targeting its exports. The beer category - just-drinks 2020 Review. The Australian Competition and Consumer Commission allowed the sale in February. It comes after the sale process for Lion’s Australian assets ended earlier in … Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. The Australian Competition & Consumer Commission has also assessed the proposed sale and has confirmed it will not be conducting any public review process, Kirin said. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. An easy and convenient way to place your orders online Sign in.