Lion has begun the sale of Lion Dairy & Drinks (LDD), following a strategic review of the arm.
LDD includes several well-known Aussie such as Dairy Farmers, Pura Milk, King Island Cheese and Dare flavoured milk.
Commenting on the move, Lion CEO Stuart Irvine said: “Following careful consideration, we believe a sale of LDD is the best option to set both Lion and LDD up with the capital and resources needed to grow into the future.
“The sale process will focus on finding the right owner to take LDD forward and unlock its full potential.”
The future of LDD began to look uncertain in early September, when the arm was placed under strategic review, with parent company Kirin hinting at a possible sellout of the brand if sales fail to increase.
The strategic review followed a three-year-long restructuring process within the Dairy & Drinks arm and could result in a sale of the business.
The sale of Lion Dairy & Drinks’ would be a massive blow to the brand’s media agency of record, Starcom.
Lion Dairy & Drinks is one of Starcom’s biggest clients, having won 100 per cent of the media buying for the brand in 2014.
B&T has contacted Starcom for comment.
In late September, there was speculation Coca-Cola Amatil (CCA) may be eyeing off LDD.