News Releases

9 November 2022

(Melbourne, November 9, 2022) – After careful consideration of all affected stakeholders, Saputo Dairy Australia (SDA or the Company) announces today that it is undertaking further consolidation initiatives intended to enhance its operational efficiency and strengthen its competitiveness. As part of the Optimize and Enhance Operations pillar of Saputo Inc.’s Global Strategic Plan, these initiatives include the intention to permanently close its Maffra, Victoria, facility. Additionally, while the sites will remain operational, the Company will streamline activities at two further facilities with the intention to shut down its bulk powders production area located in Leongatha, Victoria, and close its cheese packaging area at Mil-Lel, South Australia.

Many of the impacted production and packaging functions at these three facilities will be absorbed or integrated into the Company’s other facilities, increasing capacity utilisation and reducing costs. Approximately 75 employees will be impacted. Site management will work closely with affected employees at the three impacted sites to discuss redeployment and retraining opportunities. Where alternative roles are not available, these employees will be provided with severance and outplacement support.

“While a very difficult decision to make, today’s announcement continues our journey towards long-term success for our business in Australia by increasing our efficiency and productivity, and making our business more competitive,” said Leanne Cutts, President and Chief Operating Officer (International and Europe), Saputo Inc. "These strategic steps taken to further streamline our network aim to leverage SDA’s broader manufacturing network capabilities while creating synergies to maximise the return on every litre of milk.”

SDA will work closely with its customers to ensure these changes have minimal impact and intends for its loyal consumers to continue enjoying its diverse range of dairy products. SDA also expects no changes to its valued farmer relationships, with suppliers’ milk continuing to be collected and processed across SDA’s network. These changes will take effect in the first three months of 2023.

 

About Saputo Dairy Australia

Saputo Dairy Australia produces, markets and distributes a wide range of high quality dairy products for the domestic and international markets including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. We are the largest dairy processor in Australia. Our products are sold in several countries under well-known brand names such as Caboolture, CHEER™, Cracker Barrel*, Devondale, Great Ocean Road, King Island Dairy, Liddells, Mersey Valley, MG Ingredients, Mil Lel, South Cape, Sungold and Tasmanian Heritage. We are part of Saputo Inc., one of the top ten dairy processors in the world.

 

*Cracker Barrel is a registered trademark of Lactalis Heritage Dairy used under licence.

 

 

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release contains statements which are forward-looking statements. These forward-looking statements include, among others, statements with respect to planned consolidation initiatives, benefits resulting from such initiatives, and the expected impact of consolidation initiatives on SDA’s production, packaging, employees, consumers, customers and suppliers. The words “may”, “could”, “should”, “will”, “would”, “believe”, “plan”, or “expect”, or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.

By their nature, forward-looking statements are subject to a number of inherent risks and uncertainties. Actual results could differ materially from those stated, implied, or projected in such forward-looking statements. As a result, Saputo Inc. and SDA cannot guarantee that any forward-looking statements will materialize, and warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to differ materially from current expectations are discussed in Saputo Inc.’s materials filed with the Canadian securities regulatory authorities from time to time, including the "Risks and Uncertainties" section of the Management's Discussion and Analysis dated June 9, 2022, available on SEDAR under the Saputo Inc.’s profile at www.sedar.com.

Forward-looking statements are based on Management’s current estimates, expectations and assumptions.

Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide stakeholders with information regarding Saputo Inc. and SDA, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.

All forward-looking statements included herein speak only as of the date hereof or as of the specific date of such forward-looking statements. Except as required under applicable securities legislation, Saputo Inc. and SDA do not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on its behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.

 

Media inquiries
sda.communications@saputo.com