The dairy and drinks arm of food and beverage giant Lion has been placed under strategic review, with parent company Kirin hinting at a possible sellout of the brand if sales fail to increase.
Several well-known Aussie brands sit under Lion Dairy & Drinks, including Dairy Farmers, Pura Milk, King Island Cheese and Dare flavoured milk.
The strategic review follows 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.
When contacted by B&T, Starcom declined to make a comment on the future of its relationship with Lion Dairy & Drinks.
The restructuring is due to declining sales of Lion Dairy & Drinks-owned products, which may be thanks to the recent milk crisis in Australia as Woolworths and Coles continue to sell litre milk for $1 placing more pressure on other dairy farmers.
In a statement provided to B&T, Lion CEO Stuart Irvine said: “In order to reach its full potential and deliver its nutrition-focussed growth strategy, Lion Dairy & Drinks (LDD) requires new capabilities and investment.
“It’s therefore appropriate before we commence another three-year plan to consider the best pathway forward for LDD.”