Resurgence at King Island Dairy

For the last three decades, the King Island Dairy Company has had a new owner on average once every five years. The 132-year-old dairy business, located between Tasmania and Victoria, is known for its brie, camembert, and cheddar, supplied to major Australian supermarkets. Now under new ownership by former investment banker Nick Dobromilsky and Graeme Wilson, the company faces the challenge of reviving the business where others have struggled.

Over the years, King Island Dairy has been owned by giants like San Miguel Food and Beverage, Kirin, and Saputo, the latter intending to close operations before governmental intervention forced a sale. Dobromilsky and Wilson's challenge includes dealing with high freight costs and underutilized capacity. Local business sentiment is cautiously optimistic, with hopes that this new leadership will infuse much-needed investment.

Mayor Marcus Blackie notes the doubling of freight costs over the last decade as a significant hurdle, yet sees government support as mitigating. Tasmanian Premier Jeremy Rockliff has promised financial packages and tax reliefs. Dobromilsky remains confident, highlighting the cheese's high regard and the narrative of the island's pristine conditions as marketing levers.

The previous acquisition by ASX-listed National Foods in 2002 valued the company at 92 million AUD. Though the current acquisition cost remains undisclosed, hopes are high as King Island Dairy aims to expand its product range with softer cheeses, leveraging Dobromilsky's and Wilson's business acumen and investment prowess.