We are now three years into our Goodness Promise work and we’re proud to say that we are achieving well against our goals thanks to the collaborative efforts of all our people.

As you may be aware Our Goodness Promise aims to celebrate the inherent goodness of our products, as well as bringing better nutritional balance to the Lion Dairy & Drinks portfolio – helping people to enjoy more natural goodness every day, across Australia and New Zealand.

Lion’s beliefs and commitments to the way we develop, communicate and range our dairy, juice and adjacent non-alcohol drinks take an honest look at where our products are at, and set some exciting goals for the future.

As part of Our Goodness Promise, we have made various commitments to improve the nutrition integrity of our portfolio. These commitments include:

  • Reducing added sugar, fat and sodium
  • Innovating for better balance across our portfolio
  • Making smaller pack sizes available across all categories
  • Maintaining the nutrition integrity of our dairy and juice portfolios
  • Looking after our children’s products
  • Caffeine should be appropriate for the audience
  • Making nutrition and product information easier to understand.


Please click to enlarge image


We are three years into Our Goodness Promise and we’re proud to say we’re achieving well against our goals. We’re pleased to share six key achievements for 2017 thanks to the collaborative efforts of all our people:

1. More natural goodness
76% of our Lion Dairy & Drinks sales volume1 is in our “best” and “good”2 categories (up from 74% in 2016)

2. Product innovation
74% of our innovation projects are in our “best” and “good” categories, on track for 80% by 2019. Exciting new products or innovations include:
Lion Speciality Cheese Little Entertainers
The Culture Co Kefir
Farmers Union Greek Style Yoghurt pouches

3. Reducing adding sugar
Reformulations should result in an 897 tonne reduction in added sugar over the next year1 – 62% of our target (1440 tonnes, 10% of our 2014 volume)

4. Communicating our goodness
In 2017 we launched Milk Loves You Back (MLYB) to educate Australians about the 8 essential nutrients found naturally in milks like Dairy Farmers, Pura and Masters3. The MLYB logo and extended nutrition information panel now appears on 42 products

5. Doing the right thing
We’re voluntarily giving consumers more nutrition information about our products: Our products include this information on the labels:
Caffeine content: now on 77% of coffee products
Added sugar: now on 61 products
Calories: 145 products
Calcium content (cheese): 95 products

6. Star labelling
60% of our applicable retail portfolio displays the Health Star Rating

Based on Lion Dairy & Drinks sales volumes (Dec 2016 – Dec 2017)
2 Best, Good and Treat categories are based on independently assessed nutrient criteria. Check out sustainability.lionco.com/a-promise-of-goodness/ for more info
3 Find out more at www.milklovesyouback.com.au


In Queensland’s Tablelands region third generation farmers, the Hamilton family, manage a mixed beef, dairy and bamboo operation. For over 100 years successive Hamilton generations have supplied milk to the domestic and international markets.

In continuing the family tradition, the family is committed to producing quality milk. To ensure milk quality and to avoid contamination, the dairy shed machinery is washed down after each milking. This simple task of washing down equipment is, however, made difficult due to the unreliable electrical network it relies on to heat the water.

Far North Queensland relies on an electricity network that has infrastructure that dates back to the 1940s. Combine this with a large geography and limited people resources to repair breaks, and the result is a black-out whenever a storm or strong winds hit anywhere in the network.

Tired of this unreliability and also wanting to reduce electricity costs, the Hamilton family researched hot water systems that could be taken off the grid while supplying a reliable source of hot water.

As a family, the Hamiltons had a history of researching and implementing sustainability improvements. So, after being told about the Lion Landcare Grants from their Lion representative, Veronica Hamilton said the family applied for funding to upgrade their hot water system.

“In our region, approximately 70 percent of farmers install a system that can back up their power supply to keep milk refrigerated and operate the shed machinery.” Veronica said.

The back-up system to be installed was the same that was heating their water in their house in town – an evacuated solar hot water system with a gas booster.

The system heats the water with solar power when the sun shines and for the times that doesn’t happen it is backed up with a gas booster. Fortunately, the tropical north Queensland sunshine is frequent and intense enough that the solar system provides a reliable supply of hot water.

Veronica said the new system keeps the hot water flowing to wash and sanitise their dairy machinery.

While it is still early days, Veronica said they expect the hot water system will reduce electricity costs and in turn help them continue to do what they love – producing sustainable milk.

“We can cope with the hours required to milk the cows when we are paid enough, and can cover the costs to produce.” Veronica said.

The Lion Landcare Grant allowed the Hamiltons to make the infrastructure upgrades needed to make the farm more sustainable and was a welcome industry investment.

Looking to the future, Veronica says they plan to invest in infrastructure that will make them less reliant on the electricity grid when operating milk production and workshop facilities. They also plan to put in carbon stores, improve creek banks and crossings as well as create exclusion zones around waterways to protect the farm’s natural resources.

“What’s good for our land is good for our business and for our community. I want to leave the land in a better state than when we took it over, so our kids have the choice to continue farming in the future.” Veronica adds.

The Lion Dairy Pride Landcare Grants Program is producing exceptional, positive financial and environmental results for the farms selected to receive support. You can read more here.


Lion Dairy & Drinks is shining a light on dairy – with the milk, yoghurt, cheese and alternatives category being the second most under consumed food group in Australians’ diet this National Nutrition Week.

The 2017 National Nutrition Week (15-21 October 2017) brings nutrition front of mind for many, Lion Dairy & Drinks (LDD) is revealing the concerning realities about the second most under consumed food group in the Aussie diet; milk, yoghurt, cheese (dairy) and alternatives. National Nutrition Week is timely reminder not just for the nine out of 10 Australians who are not getting their recommended daily intake of dairy or alternativesi but also for parents, as statistics show Aussie children’s dairy consumption declines as they age, whilst at the same time their nutrient needs and recommended serves of dairy or alternatives, increasesi.

Complementary to National Nutrition Week, LDD launched Milk Loves You Back this year, to remind Australians of the natural goodness contained in milks like Dairy Farmers, Pura and Masters that boast a broad range of health benefits from 8 natural nutrients.

Growing Bodies and Bones

Alarmingly, dairy consumption dramatically declines during pre-teen and teenage years, with only 1 in 50 (2%) Australian teenagers aged 12-18 year consuming their recommended serves of dairy or alternativesi. While children aged 2-3 are the biggest consumers of dairy or alternatives i, there’s a worrying decline in consumption as they growi. This decline occurs at a critical time when childrens’ nutrient needs and recommended serves of dairy or alternative increasesi. This is to support their body and bone growth, particularly at the ages of 12-14 for girls and 13-15 for boys, when a quarter of adult bone mass is built.

According to LDD’s own research, reassuringly, 4 in 5 (78%) Aussie children (aged 5-17) believe that nutrients in dairy milk gives us strong teeth and bones, and almost half believe milk helps our bodies as we grow (47%). That said, calcium, along with iron, are the most commonly under-consumed nutrients in the Australian diet. Notably, 95% of children aged 2-3 met their recommended nutrient intake, except iron, similarly 95% of those aged 4-8 met their recommended except for iron and calciumi. In contrast, 71% of boys and more than 90% of girls aged 14-18 years did not achieve adequate calcium intakes, in part due to higher nutrient needs and lower dairy consumption in older childrenvii.

Milk is, in fact, one of the richest sources of calcium in the dietvii. Milk and dairy foods like Dairy Farmers, Pura and Masters boast a broad range of health benefits. It also has 8 natural nutrients including not just calcium, but protein and phosphorus – which are critical for growing bones, as part of a balanced diet- as well as potassium, iodine and vitamins B2, B5 and B12.

Getting the Balance Right

Contrary to the 3 in 10 (31%) parents incorrectly assuming boys and girls have the same recommended dairy intake, recommended dairy or alternative serves vary – children aged 2-3 and girls 4-8 years should consume 1½ serves of dairy per day as part of a balanced diet, however for boys aged 4-8 it increases to 2 serves per day and recommended serves of dairy per day continues to increase with age up to 3½ serves per day for teens 12-18 years.

A serve of dairy comes in many different forms. It can be as easy as a glass of milk in the morning (250ml), a small tub of yogurt (200g) or 2 slices (40g) of cheese in a sandwich. Or for a more sophisticated option, pairing your dairy with your fruit and vegetables – Australian analysis suggests that school lunches provide about 40% of children’s daily food/ energy intakes. 

Here are some simple ways to get dairy in to your kids lunchbox:

Yoghurt: Try a yogurt pouch, (70g may suit little kids or >100g for bigger kids) or a small tub, it’s perfect at recess (handy hint: you can freeze the yoghurt pouch/tub to stay cool).

Milk: Leftover pasta with cheese sauce (made with milk and cheese) can be a great alternative to a sandwich, paired with cauliflower or broccoli.  For the kids, a small UHT regular or flavoured milk is a great snack for the active ones, providing all the goodness of milk in an easy product you can keep in the pantry and pop in the lunchbox.

Cheese: Try adding 1 or 2 slices of cheese in the sandwich, or grated cheese in a wrap or sprinkled on top of a pasta or a salad.

Hawthorn legend and father of four, Shane Crawford adds: “I am all about getting the balance right and this has never been more important than when a dad. We work hard to make sure our boys get the right nutrients to keep them fired up throughout the day. I often stop for a milkshake after a runabout with the boys, or whip together our favorite smoothie, to help not only their little bodies refuel, but mine too!”

For more information on the 8 essential nutrients in milks like Dairy Farmers, Masters and Pura, recommended daily serves and more, visit www.milklovesyouback.com.au.

Consumer Research Methodology:

The research was commissioned by Alt/Shift on behalf of Lion Dairy & Drinks and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 1,037 Australians aged 18+ and 530 children aged 5-17 years old. Surveys were distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 30 March and 4 April 2017. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.

1. Australian Bureau of Statistics, 2016. Australian Health Survey: Consumption of Food Groups from the Australian Dietary Guidelines, 2011-12 Cat no, 4364.0.55.012 –  (Only 10% of Australians consumed their recommended serves of dairy or alternatives compared to 4% for vegetables and legumes/beans, 31% for fruit, 30% for grain (cereals) and 14% for lean meats and alternatives.)

2. Thomas B, Bishop J. Manual of Dietetic Practice (4th ed). Blackwell Publishing: Carlton; 2007.

3. Lonergan Research 2017, commissioned by Alt/Shift on behalf of Lion Dairy & Drinks. Online Survey of 1037 Australian adults (nationally representative) and 530 children

4. Australian Bureau of Statistics, 2015, Australian Health Survey: Usual Nutrient Intakes, 2011-12  cat. no. 4364.0.55.008 (http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4364.0.55.008~2011-12~Main%20Features~Calcium~401)

5. Lonergan Research 2017, commissioned by Alt/Shift on behalf of Lion Dairy & Drinks. Online Survey of 1037 Australian adults (nationally representative) and 530 children

6. Recommended number of serves for children, adolescents and toddlers https://www.eatforhealth.gov.au/food-essentials/how-much-do-we-need-each-day/recommended-number-serves-children-adolescents-and

7. Bell, A.C.; Swinburn, B.A. What are the key food groups to target for preventing obesity and improving nutrition in schools? Eur. J. Clin. Nutr. 2004, 58, 258–263. [CrossRef] [PubMed]


Since April last year, dairy farmers who supply Lion in South Australia and South East Queensland have had the opportunity to access brewers’ grain for stockfeed at competitive rates. The grain is sourced from local Lion breweries at XXXX (Brisbane) and West End (Adelaide).

The offer has proved extremely popular with our farmers, who credit Lion’s initiative with helping to drive more competitive pricing of brewers’ grain in the market, enhancing their access to the feed and in some cases improving milk supply, quality and overall farm productivity.

Lion is therefore delighted to be extending the by-products program to all farmers to who supply Lion in NSW, Victoria and WA, utilising spent grain from our breweries in Sydney (Tooheys), Geelong and Fremantle (Little Creatures) respectively. In addition, NSW farmers will also be eligible to apply for citrus pulp, sourced from Lion’s juice operations in Leeton (NSW).

Access to brewers’ grain and other by-products is a benefit Lion is uniquely positioned to offer dairy farmers, given our major brewery and juice operations. Longer term, Lion will explore the feasibility of offering farmers access to other stockfeeds, for example soy hulls and okara, which are by-products of Lion’s Vitasoy joint venture. We will also consider extending the grain offer to Tasmanian farmers.

Grain and citrus volumes are limited, so eligible farmers in NSW, Victoria and WA are encouraged to contact their Lion Farm Services Manager, or DFMC representative if applicable, for more information as soon as possible.


Lion Pty Ltd (Lion) has today formally accepted an offer by Saputo Dairy Australia Pty Ltd, a subsidiary of Saputo Inc to acquire all of the ordinary shares Lion holds in Warrnambool Cheese and Butter (WCB), at an improved price of $9.05 per share.

While Lion will make a small profit as a result of the sale, its stake was a strategic one intended to protect the business’ broader interests, including longstanding contract arrangements with WCB.

Since the purchase of the WCB stake in 2013, Lion’s Dairy & Drinks business has made significant progress in its turnaround program, including the sale of everyday cheese assets to WCB in 2015 as part of its tightening focus on core dairy and juice categories. Today’s sale to Saputo is therefore a logical step and a positive outcome for Lion.

Existing contracts are unaffected by the sale, including Lion’s supply of parmesan cheese to WCB. Lion looks forward to continuing mutually beneficial commercial arrangements with WCB going forward.


Lion Dairy & Drink (Lion) today launched a unique sustainability program for its dairy farmers, called the Lion Dairy Pride Program.

The Australian-first online program will provide dairy farmers with trusted practical and informative information and will also be a one-stop-shop for dairy farmers looking to access essential industry resources.

Lion Dairy & Drinks Managing Director Peter West said the sustainability program offered dairy farmers a way to measure, evaluate and improve key areas of sustainability on their farm.

“It has been developed by industry experts to help our dairy farmers improve their farm sustainability practices and to also acknowledge the areas they are already performing well in,” he said.

“Ultimately our aim is to work with our farmers to improve their farm’s sustainability and, potentially, their profitability.”

Lion partners with around 400 dairy farmers across Australia, many of them family businesses and all committed to raising healthy herds.

Mr West said the Lion Dairy Pride Program was developed in consultation with Lion dairy farmers and industry who wanted easy access to useful tools and templates, as well as links to external resources.

The Program includes a website with an easy-to-use assessment tool that guides farmers through five key areas of the dairy farm business system: milk quality, animal welfare, people, community & wellbeing, the environment and business management.

“This is about providing our dairy farmers with the tools and templates they need to help manage day-to-day operations of their farms,” Mr West said.

“It is to help them set their business up for success through business plans, performance measures, budgets and planning for the future.”

Mr West said there was a strong focus on the employment process, safety and wellbeing and in the environment module, tips on monitoring and managing essential environmental elements.

“It is a well-researched program that is providing our dairy farmers with essential information that is not only easy to access, but also trusted,” he said.

“We are very proud of this initiative. It is a partnership and together we can deliver delicious dairy goodness to every Australian, every day.”

Lion is also proud to announce it is again partnering with Landcare Australia to offer farmers the opportunity to apply for grants to help improve on-farm environmental efficiency and profitability. Projects can focus on reducing energy consumption, enhancing nutrient management or increasing biodiversity. This program will form part of the broader Dairy Pride program. The Lion Dairy Pride Landcare Grants Program provides our farmers with the tools and resources to address some of the ongoing environmental challenges in the dairy industry.

Now in its third year, it supports farmers in growing productivity and profitability while improving the sustainability performance of their farms. The program is seeking applications from both Lion’s direct farmers and, for the first time, DFMC (Dairy Farmer Milk Co-Operative) farmers.

For further details on how to apply for a Lion Dairy Pride Landcare Grant, please click here. To view successful projects from the 2015 Lion Landcare Grants program, please click here.


Lion Dairy & Drinks (Lion) has today announced a revised farm gate price for less than 10% of its dairy suppliers in the southern states, who have selected variable pricing for the 2015/2016 season.

Following changes to the milk supply market in Australia, Lion reviewed its variable pricing rates for the 2015/2016 season and made the decision to adjust its variable pricing for only the month of June 2016 by 4.65 cents per litre – reflecting a new annual averaged weighted price paid of $5.92 per kg of milk solids.

Lion Dairy & Drinks Managing Director Peter West said that this revised price continues to reflect a strong price for the 2015/2016 season, and will only impact our dairy suppliers who have chosen variable pricing for all or part of their volume.

“As one of Australia’s leading branded dairy players, this decision was not something we took lightly, however it reflects the current milk supply market,” Mr West said.

“We are committed to building long term sustainable and mutually beneficial partnerships with our dairy suppliers and as such we offer a variety of choices and a premium when it comes to price. Our milk supply contracts have varying lengths (1, 3 or 5 years) and multiple pricing options. This allows our farmers to make informed decisions about what pricing model best suits their individual circumstances,” he said.

“We appreciate that this decision will be disappointing to the small number of our farmers who have chosen a variable pricing option for the 2015/16 season, however it should not be unexpected, as this is in line with market movements.

“Lion decided not to adjust the variable rate for May 2016, as we felt it was important at this time to provide our farmers, who did choose the variable pricing option, with some additional time to prepare for the change. Our revised variable rate is only applicable for June 2016, which is the last month of the 2015/2016 season.”

Mr West said that by offering a range of price options we believe this allows our suppliers to manage the effect of fluctuations in a volatile dairy market.

“We think our pricing model offers them a compelling opportunity to select the level of risk and certainty that is right for their business, and allows our suppliers to plan and grow for the future,” he said.

Lion Dairy & Drinks Farm Gate Milk Supply Agreement and Pricing Options

Lion dairy suppliers in the southern states (Victoria, Tasmania and South Australia) have the choice of: variable pricing underpinned by a minimum pricing guarantee; fixed pricing if they prefer a set and determined price; and also an option to combine fixed and variable pricing.

Under our three year contract, dairy suppliers can elect to fix some of their volume for this period and this is also offered in various combinations – including where up to 50% of the volume is fixed and the rest is variable, or where 50% is fixed at a three year rate and the other half at a 1 year fixed rate.


Lion Dairy & Drinks (LDD) has today announced a transformational investment of $40m over three years to underpin its dairy growth in the Western Australian market.

This investment signals LDD’s commitment to Western Australia for the long term, and will deliver a comprehensive modernisation of the Bentley dairy processing plant in Perth, together with new manufacturing capability and a more efficient route to market to better serve customers and consumers across the state.

A planned sale of surplus land assets will fund a transformation of the Bentley site over three years, with improvements to include:

– the construction of a new Western Australian Distribution Centre;

– the installation of one way packaging technology, and a new filling line, to expand manufacturing capacity in milk based beverages and enhance LDD’s efficiency in white milk. This will help meet growing demand for LDD’s blockbuster brands such as Dare Iced Coffee and also support plans to grow the iconic WA Masters brand together with LDD’s white milk business;

– a significant upgrade of buildings and amenities and

– new internal roads and a new north / west exit to enhance driver safety and reduce vehicle traffic in adjacent residential areas.

LDD also plans to improve the efficiency and flexibility of its logistics and distribution arrangements, to deliver the best possible service to customers. In particular, the business will consolidate its existing multiple depot footprint to a single new depot on site at Bentley. As part of this decision, LDD will outsource its warehouse operations to Linfox allowing the company to take advantage of their expertise to drive greater efficiencies around the business. Unfortunately as a result of this change all roles within the Logistics function onsite at Bentley will be made redundant.

LDD Managing Director, Peter West said: “This transformational $40m investment makes clear LDD’s intent to compete and grow our dairy business in Western Australia over the long term.

“Any decision that results in job losses is taken extremely seriously. Today’s announcement is about ensuring we remain a sustainable and viable operator in the Western Australian dairy market today and in the future. The outsourcing of the warehouse operations is no reflection on the people working in this area at the Bentley site – the contribution that they have made to our site over many years has been much appreciated,” Mr West said.

“Our people are our primary concern right now and we are focused on supporting them and their families through this process.”

All Lion people whose job has been impacted will receive their full entitlements and will be offered outplacement support. Free independent confidential counseling is also being offered to all employees and their families through our People Support Program. We will also consider redeployment opportunities along with relocation assistance where appropriate.

The $40m investment comes on top of $1.5million LDD has invested in the site in the past 12 months.

“This significant investment highlights our belief in the dairy industry in Western Australia and the focused approach we are taking to this market, consistent with our turnaround plans,” Mr West said.

“We will continue to target the high-value milk based beverage category, white milk and other key dairy categories, where we believe we can sustain profitability and category growth over the long term for the benefit of our business, farmers, customers, distributors and other stakeholders.

“LDD will continue to invest in improving our competitiveness and flexibility, together with our manufacturing capability, marketing and sales execution, as part of a balanced and ambitious strategy in Western Australia.”


Lion Dairy & Drinks has released the first Goodness Project Annual Progress Update outlining its steps towards enhancing natural goodness across the dairy and non-alcoholic drinks portfolio. Reformulation initiatives achieved in the first year are expected to remove around 170 tonnes of added sugar and 175 tonnes of fat from the Australian food supply in the coming year[1].

Lion Dairy & Drinks launched the Goodness Project in August 2014, making a commitment to help consumers improve their health and nutrition. The Goodness Project celebrates the existing goodness of our products and illustrates Lion Dairy & Drinks commitment to a range of additional targets to further improve the nutritional value of its products, address portion size and improve the nutritional literacy of consumers.

Lion Dairy & Drinks Managing Director Peter West said: “Australians want to eat better quality and more nutrient dense products and our dairy and juice portfolio is already well placed to help them do this.

“But we think we can do much more and that’s what the Goodness Project is all about. This program allows us to celebrate the existing goodness in our products as well as undertaking initiatives to improve products right across our portfolio, with the aim of making them as naturally good and nutritious as possible,” Mr West said.

“We are also taking a leadership position on nutrition education and labelling to help consumers understand what’s in their food, as well as introducing new packaging options to better help manage their portion size,” he said.

“We’re very excited about the progress made in the first year of the Goodness Project and there is an outstanding pipeline of new initiatives hitting the market in the second year.”

Lion Dairy & Drinks worked with experts at CSIRO and Deakin University to agree on robust nutrition criteria for assessing its portfolio. By 2019, 80% of Lions Dairy & Drinks’ portfolio will meet its ‘best’ or ‘good’ for you criteria, reducing the proportion of its ‘treat’ products.

Achieving Lion Dairy & Drinks Goodness Project targets by 2019 are expected to remove around 4 tonnes of sodium, 1400 tonnes of sugar and 500 tonnes of fat from the national food supply annually[2]. While also removing all artificial colours, flavours and added fructose in its children’s products.

Further, Lion Dairy & Drinks was one of the first food and drinks companies to commit to the government Health Star Rating (HSR), along with additional energy information (energy per 100g/mL and per serve). Lion Dairy & Drinks has already made significant progress in year one of the Goodness Project with 20% of its products now displaying the HSR.

“We are also excited to announce our New Zealand Dairy business is now part of the Goodness Project.”

Mr West said: “The Goodness Project is a perfect example of how sustainable commercial success is dependent on meeting the future needs of the community.”

“Australians are so much more nutrition savvy than as recently as 10 years ago. Technology will make it easier for them to seek out information and plan their diets. The food companies that thrive over the coming decades will be focused on helping Australians live better, healthier lives.”

A summary of year one progress is attached.

[1] Based on sales volume Oct 2015

[2] Base-line annual sales volumes, excluding everyday cheese

Please click the following images to read about how we are delivering more natural goodness everyday:




Lion today announced its trading update for the half year ended 31 March 2015 in conjunction with Kirin Holdings’ half year announcement.

Amidst highly competitive and deflationary market conditions, net sales revenue decreased 6 percent to $2,514 million across the entire Lion group, contributing to a 7.5 percent decrease in Lion group operating earnings to $389 million.

While a contraction in beer volumes in line with the decline in the overall beer market was significant in crimping H1 operating earnings, the phasing of Lion’s innovation calendar is also a material factor. In contrast to the prior year, much of Lion’s program falls in the second half in FY15, meaning the group remains on plan to deliver full-year earnings growth.

Lion CEO Stuart Irvine said: “Like most FMCG businesses Lion is yet to see the recent uptick in consumer confidence translate into improved retail spending. At the same time, while Lion has geared its beer portfolio to higher value growth segments, the total beer market decline intensified during the half.

“While market conditions remain challenging, we have a clear strategy in place to reinvigorate the beer category with a number of significant brand and category initiatives planned over the upcoming key sales period.

“Lion’s Dairy & Drinks business is also on plan one year into its three year turnaround. Our focus on high value product categories is showing positive signs, with Dare iced coffee now outselling Coca Cola in the convenience channel and Farmers Union Greek Style Yoghurt becoming the number one selling yoghurt in Australia. The recent sale of our everyday cheese business will enable further investment in the turnaround strategy.

“Our recently opened specialty cheese site, The Heritage, in Tasmania will further support our domestic growth plans and our ambitions to take our premium specialty cheese brands to Asian consumers.

“While it’s still early days, our recently formed Lion Asia Dairy business is also making solid inroads. We already have category leading yoghurt brands in Singapore and Hong Kong and a branded white milk presence in China, Singapore and Malaysia.”

Beer, Spirits & Wine


While total volumes in Lion’s Beer, Spirits & Wine business in Australia declined 2.8 percent, in line with the total beer market decline, Lion saw strong growth in its market-leading craft portfolio with James Squire 150 Lashes, Little Creatures Pale Ale and Little Creatures Rogers all posting double digit growth.

Contemporary brands Hahn Super Dry and mid-strength variant Hahn Super Dry 3.5 were also in growth during the half, while Corona Extra, Heineken and Stella Artois remain the number one, two and four brands respectively in the growing international premium segment.

Lion’s premium wine business, Fine Wine Partners, had a strong first half with Petaluma and Croser gaining overall value share and the construction of the new Petaluma winery consolidating winemaking, bottling and packaging for these brands at a single site in the Adelaide Hills.

Following the half Fine Wine Partners also signed a deal with Jebsen Wines to distribute St Hallett, Petaluma, Knappstein, Stonier and Argyle across China.

New Zealand

In New Zealand increased promotional activity saw Lion gain market share and grow Beer, Spirits & Wine volumes by 1.3 percent against a backdrop of intense competition and continued margin pressure.

While market conditions remain challenging, Lion has a strong innovation pipeline in the growing mid-strength beer segment. The launch of Speight’s Mid Ale on tap in December is already exceeding expectations and Mac’s Mid Vicious Pale Ale is performing well as a full-flavoured mid-strength craft offering.

Lion’s craft beer portfolio also continued to flourish, with Mac’s posting solid growth following a major restage towards the end of the half, including new packaging and the launch of several new products. Speight’s 5 Malt Old Dark was also awarded Best International Beer at the recent Australian International Beer Awards, and progress continued on the new Emerson’s Brewery site in Dunedin towards its opening in 2016.

During the half Lion also secured a long term agreement to be the exclusive beer supplier to Air New Zealand on all domestic and international flights and all lounges.

Dairy & Drinks

In Lion’s Dairy & Drinks business, a volume decline of 19.4 percent was driven by the loss of some retail own brand milk contracts in the fourth quarter of FY14. However, this was somewhat offset by the successful retention of other retail own brand contracts, as well as growth in higher value product categories, in line with the turnaround strategy.

Lion’s strategy of leveraging the nutritional credentials of its portfolio contributed to strong growth in yoghurt, with Farmers Union Greek Style Yoghurt up 19.8 percent in value terms, Yoplait classics up 4.9 percent and Dairy Farmers Thick and Creamy up 40.5 percent, driven by new product development. The February launch of Yoplait Bon Appetit is also showing early signs of success.

Milk based beverages continue to be a stand out in the Lion Dairy & Drinks portfolio. Dare is continuing its strong growth trajectory in all states, supported by increased marketing investment and the launch of a new mocha variant into key markets. Dairy Farmers Classic flavoured milk is also in strong growth in New South Wales and Queensland.

In other brand highlights, Zooper Dooper had a strong summer sales period, growing at 17 percent in value terms during the half.

The business also remains firmly focused on optimising the performance of its supply chain and manufacturing footprint. During the half Lion completed works at its new specialty cheese manufacturing site, The Heritage, in Tasmania which has been transformed into the largest specialty cheese facility in the southern hemisphere.