King Island Dairy
Corporate brand
UnclaimedAn Australian specialty-dairy producer based on King Island in Tasmania, known for award-winning blue, soft-ripened and cheddar cheeses.
Last updated August 25, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
King Island Dairy is an Australian dairy producer and cheese brand based on King Island in Bass Strait, Tasmania. Its modern operating history dates to 1902, when the King Island Co-operative Dairy Factory Company began building a factory at Loorana after agricultural assessments identified the island as suitable for a small-scale dairy industry. The first shipment of butter left the island in September of that year. By 1904, approximately 900 cows were supplying the factory, establishing dairy processing as an important part of the island economy. The island had an earlier dairy venture, the King Island Dairy Factory Co. Ltd, established in 1892. Cheese production developed later. In 1936, Archibald Gunn established a cheese and butter factory at Wickham, and this business merged with the King Island Co-operative Dairy Factory in 1938. A proposed combination with Melbourne-based Kraft Walker Cheese Company failed in the mid-1940s. In 1947, the business stopped making cheese and closed the Wickham factory, concentrating for a period on butter, dried milk powder and whole milk. The business encountered serious financial problems during the 1970s. Butter production ended in 1975, and receivers were appointed in 1977. In July 1978, William and Robyn Kirk of Interlandi Cheese acquired the operation. Initially, the renamed King Island Dairy Products made processed cheese for Kraft Foods distribution in the Middle East. The owners later pursued a higher-value specialty-cheese strategy, supported by financing from the Tasmanian Development Authority. A signature Brie was launched in April 1985, marking the beginning of the brand’s stronger association with premium and specialty cheese. The Kirks lost control of the business in 1986 after the Tasmanian government acted over an unpaid development loan. King Island Dairy was sold to Transequity and later became associated with Agricorp. Melbourne investors acquired the shares in 1992 and converted the business into an unlisted public company called the Island Food Company. By 1998, more than 9,000 predominantly Friesian cows were reported to be supplying milk on King Island, illustrating the scale of the island’s dairy industry. National Foods purchased King Island Dairy in 2002. National Foods was acquired by Japan’s Kirin conglomerate in 2007, and its dairy and drinks assets were subsequently reorganized within the Lion and Lion Dairy & Drinks structures. Saputo, a Canadian dairy company, acquired Lion Dairy & Drinks in 2019, bringing King Island Dairy into Saputo’s Australian portfolio. In 2024, reports that the factory might close raised concerns about employment and the future of local milk processing. In March 2025, the business was reported to have been sold by Saputo to Australian cheesemakers and business partners Nick Dobromilsky and Graeme Wilson for an undisclosed amount. The transaction allowed the facility to continue operating and returned the dairy to Australian ownership after roughly a quarter-century under foreign ownership. King Island Dairy’s identity is closely connected to the island’s cool maritime climate, pasture-based milk supply and remote location. Its portfolio has included Brie, Double Brie, Triple Cream Brie, Camembert, Danish Blue, Blue Brie, Ash Blue, Blue Cheshire and flavored or specialty cheddars such as Smoked Cheddar, Blue Cheddar and Bush Pepper Cheddar. The factory has also produced butter and other dairy products at different points in its history. It has been described as the largest employer on King Island, giving the brand significance beyond its retail products: the factory is also a central regional employer and an anchor for the island’s agricultural economy.
History
King Island’s first known dairy enterprise was the King Island Dairy Factory Co. Ltd, established in 1892. A separate cooperative, the King Island Co-operative Dairy Factory Company Limited, was proposed in March 1902 after agricultural experts assessed the island’s climate and farming conditions. Construction at Loorana began in June 1902, with the building and machinery representing a substantial early investment for the island. The first butter shipment was made in September 1902, and the cooperative had around 900 supplying cows by March 1904. Cheese manufacturing emerged in the 1930s. Archibald Gunn founded A. E. Gunn Pty Ltd at Wickham in 1936, producing the first cheeses made on King Island. The operation merged with the cooperative two years later. A proposed 1945 merger with Kraft Walker Cheese Company did not proceed. In 1947, the Wickham factory closed and cheese production was discontinued. The remaining cooperative business focused on butter and later produced dried milk powder and whole milk. The company experienced financial distress in the 1970s. It stopped making butter in 1975, and receivers were appointed in 1977. William and Robyn Kirk, owners of Interlandi Cheese in Tasmania, purchased the dairy on 1 July 1978 for $180,000. The business initially supplied processed cheese for Kraft Foods’ Middle Eastern market. During the 1980s, the Kirks attempted to reposition the company toward premium cheese, receiving financial assistance from the Tasmanian Development Authority and introducing a signature Brie in April 1985. The Tasmanian government took possession of the business in early 1986 because of an outstanding development loan and sold it to Melbourne company Transequity for $300,000. Transequity was subsequently acquired by Agricorp, an agribusiness consultancy. In 1992, Melbourne investors bought the shares from Agricorp and converted the company into an unlisted public company named the Island Food Company. The island’s dairy herd had grown to more than 9,000 cows, mainly Friesians, by 1998. National Foods acquired King Island Dairy in 2002. Kirin acquired National Foods in 2007 for a reported $2.8 billion, and in 2009 Kirin consolidated its Australian beverage and food interests by acquiring full ownership of Lion Nathan and combining it with National Foods. In 2011, the resulting business was divided into Lion and Lion Dairy & Drinks divisions. Saputo acquired Lion Dairy & Drinks in 2019, including King Island Dairy, as part of its Australian dairy expansion. The factory’s future became uncertain in 2024 when reports suggested a possible closure. The issue was important locally because King Island Dairy had been characterized as the island’s largest employer. In March 2025, Saputo sold the operation to Australian cheesemakers Nick Dobromilsky and Graeme Wilson for an undisclosed sum. The reported sale kept the dairy operating and returned it to Australian ownership after approximately 25 years under overseas ownership. Its product heritage remains centered on premium blue, soft-ripened, washed-rind and cheddar cheeses, supported by milk production on King Island.
- 2025
Return to Australian ownership
[1]Nick Dobromilsky and Graeme Wilson acquired the dairy from Saputo and announced that the operation would continue.
- 2019
Saputo acquires Lion Dairy & Drinks
[1]Canadian dairy company Saputo purchased Lion Dairy & Drinks, including King Island Dairy.
- 2011
Lion Dairy & Drinks division established
[1]Kirin reorganized the relevant operations into Lion and Lion Dairy & Drinks divisions.
- 2007
Kirin acquires National Foods
[1]Japanese conglomerate Kirin acquired National Foods, placing King Island Dairy within its Australian food and beverage portfolio.
- 2002
National Foods acquisition
[1]National Foods purchased King Island Dairy for a reported $77 million.
- 1992
Island Food Company formed
[1]Melbourne investors acquired the shares and converted the company into the unlisted Island Food Company.
- 1986
Ownership transferred to Transequity
[1]The Tasmanian government took possession over an outstanding loan and sold the dairy to Transequity.
- 1985
Signature Brie launched
[1]The company introduced a signature Brie as part of a shift toward higher-value specialty cheese.
- 1978
Kirk family acquires the dairy
[1]William and Robyn Kirk purchased the business and initially focused on processed cheese production.
- 1977
Receivers appointed
[1]Financial difficulties culminated in the appointment of receivers after butter production had ceased.
Products and positioning
Premium Australian specialty dairy, emphasizing King Island provenance, island-produced milk and traditional cheese styles.
Soft-ripened cheese · 1985
Brie and soft-ripened cheeses
King Island Dairy’s soft-ripened range includes Brie, Double Brie and Triple Cream Brie, as well as Camembert. These cheeses represent the premium repositioning undertaken in the 1980s, when the business moved away from commodity-oriented dairy production and promoted specialty cheese. They are associated with the brand’s use of King Island provenance and its reputation for rich, creamy textures.
Blue cheese
Blue cheeses
The blue-cheese portfolio has included Danish Blue, Blue Brie, Ash Blue and Blue Cheshire. These products broaden the brand beyond conventional soft cheese and highlight its specialty-cheesemaking identity. The range includes both traditional blue profiles and variations that combine blue veining with different rind or flavor treatments.
Cheddar cheese
Cheddar cheeses
King Island Dairy has produced several differentiated cheddar styles, including Smoked Cheddar, Blue Cheddar and Bush Pepper Cheddar. Rather than presenting cheddar only as a standard everyday cheese, these variants use smoke, blue maturation or native-style pepper seasoning to support the brand’s specialty and premium positioning.
Dairy staples · 1902
Butter and milk products
Butter was the company’s principal early product, with the first shipment made in 1902. Across different periods the business also produced whole milk and dried milk powder. These products reflect the factory’s broader agricultural role, although its contemporary reputation is more strongly associated with specialty cheese.
Brand decisions
2025
Sale to Australian cheesemakersM&ABackground
Reports in 2024 had raised the possibility that the dairy might close, threatening a major source of employment on King Island.
Action taken
Saputo sold King Island Dairy to business partners and cheesemakers Nick Dobromilsky and Graeme Wilson for an undisclosed sum.
Aftermath
The buyers stated that the dairy would remain in operation, marking a return to Australian ownership.
2019
Saputo acquires Lion Dairy & DrinksM&ABackground
King Island Dairy was part of the Lion Dairy & Drinks division within Kirin’s Australian operations.
Action taken
Saputo purchased Lion Dairy & Drinks, bringing King Island Dairy into the Canadian company’s portfolio.
Aftermath
King Island Dairy remained under foreign corporate ownership until its reported sale in 2025.
2002
National Foods purchases King Island DairyM&ABackground
King Island Dairy was operating as an unlisted company after ownership by Melbourne investors and the Island Food Company.
Action taken
National Foods acquired the business for a reported $77 million.
Aftermath
The dairy entered a succession of larger corporate ownership structures, later including Kirin, Lion Dairy & Drinks and Saputo.
Reported acquisition price. $77 million (2002)
1984
Shift toward premium specialty cheeseStrategyBackground
After acquiring the financially troubled dairy, William and Robyn Kirk initially made processed cheese for Kraft Foods’ Middle Eastern market. They later sought to build a higher-value cheese business with support from the Tasmanian Development Authority.
Action taken
The company redirected investment and product development toward premium cheeses and introduced a signature Brie in April 1985.
Aftermath
The move established the specialty-cheese identity that became central to King Island Dairy’s brand.
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/king-island-dairy · Editorial policy · How profiles are compiled