Iconic brand shuts down after 120 years in ‘ultra-competitive’ industry

As we gather around our dining tables, sharing stories and savouring the flavours of our favourite cheeses, it's with a heavy heart that we must bid farewell to a true icon of Australian gastronomy.

King Island Dairy, synonymous with quality and tradition, will close its doors mid-2025, marking the end of a remarkable 120-year era.

But as we've learned, even the most storied institutions aren't immune to the tides of change.


Saputo, the parent company of King Island Dairy, announced the change, which has sent ripples through the food industry and among cheese lovers across the nation.

Despite an intensive 10-month strategic review, efforts to find a buyer for the iconic brand were unsuccessful.

Leanne Cutts, President of Saputo Dairy Australia, expressed the weight of the decision, acknowledging the brand's deep roots in the region and its historic significance.


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King Island Dairy, a legendary Australian cheese brand, closes in mid-2025 after 120 years. Credit: Facebook


‘After thoroughly reviewing every possible option, closure of the facility was determined as the most viable way to strengthen SDA’s competitiveness based on changing industry and market conditions,’ she said.

‘As King Island Dairy’s historic roots are deeply embedded in the region, it was hoped the strategic review would identify a potential buyer for the facility,’


King Island Dairy's facility, nearly a century old, was designed to produce handmade specialty cheeses—a craft that requires skill, patience, and a dedication to quality.

‘It is a unique brand, with a plant that is nearly 100 years old and designed to produce handmade specialty cheeses.’ Ms Cutts added.

Over the past five years, Saputo has invested over $40 million in its Tasmanian operations, a testament to its commitment to the dairy industry.

Yet, the brand has struggled to maintain its footing in an ever-evolving 'ultra-competitive' food industry landscape.

The closure will undoubtedly have a profound impact, affecting 58 jobs and sending shockwaves through the local community.


However, Saputo has pledged to explore 'redeployment opportunities' where possible and to continue supporting dairy farmers in the area.

Tasmanian Premier Jeremy Rockliff has voiced his disappointment at the news, assuring the government to immediately support the workers, farmers, and the local community affected by this significant change.
Key Takeaways

  • King Island Dairy, an iconic Australian cheese brand, is set to close down in mid-2025 after 120 years of cheese production.
  • Parent company Saputo Dairy Australia could not find a buyer after conducting a strategic review for ten months, leading to the decision to shut down operations.
  • The closure is attributed to changing industry and market conditions, impacting 58 jobs, though Saputo intends to seek redeployment opportunities where possible.
  • Tasmanian Premier Jeremy Rockliff expressed disappointment at the closure, assuring that immediate support would be provided to affected workers, farmers, and the local community.
What steps do you think could have been taken to save King Island Dairy from closure potentially? Do you believe specific strategies or innovations might have helped the brand remain competitive? Let us know in the comments below.
 
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I once was able to eat their superb cheeses but have been lactose intolerant for over 20 years now so I have to be careful of my choices. I still buy Australian cheese but lactose free!
Sad to see this icon disappear!
 
The blame goes to our Government for letting stores like Coles and Woolworths bully everyone for pure greed
What a load of codswallop trying to blame the government for a Canadian company's business decision. I love their products, too, but there are many good dairy products at a lower price point, and that is important these days.
 
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Reactions: relljube
I'm very late in making a comment on this posting.

I'm all the way with you on this one, "Gamiry". It'd be interesting to know how much industry is on King Island. I wouldn't imagine that there would be too much around for the local populous to embark on new employment adventures, which is extremely unfortunate for them.

Gamiry, you were very kind on how you referred to the Fed., Gov't. I reckon that you coud've been a little bit more "Flowery" of how you described them. Don't hold back, give it to them full blast & head on, smack in the middle of their face.
 
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Reactions: Iggydi
A pity the folk of King Island can't band together and buy the business
That is what Kenilworth Dairy did in Qld. There is not much on King Island to employ 60 people that are going to lose their jobs. The poor farmers lost their beef industry and now the dairy industry is going the same way. These greedy corporate companies need to be held accountable for their decisions and so does the government.
 
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Reactions: Ann Melling
I'm very late in making a comment on this posting.

I'm all the way with you on this one, "Gamiry". It'd be interesting to know how much industry is on King Island. I wouldn't imagine that there would be too much around for the local populous to embark on new employment adventures, which is extremely unfortunate for them.

Gamiry, you were very kind on how you referred to the Fed., Gov't. I reckon that you coud've been a little bit more "Flowery" of how you described them. Don't hold back, give it to them full blast & head on, smack in the middle of their face.
They have 3 golf courses. Kelp industry and Lobster industry. The place is pretty small so King Island Cheese shutting down will not help the people. There are a few restaurants, a pub, a few shops (like bakery, supermarket, chemist, op shop and fast food shop), bank, boutique gin place and a RSL type of club. My grandson works down there as a chef. We are going down there in October to visit him.
 
  • Like
Reactions: Ann Melling
What a shame, it will put a big hole in King Island's economy. I lived in Tasmania for 20 years and I remember a friend from KI saying if there were more than 2 cars on the main street, it was a traffic jam. I honestly don't know the solution unless the government bails them out.
 
I lived in tasmania for nearly 20 years also but never got to go to king island unfortunately, but at least we supported them by using their products in our restaurant.And it’s not closing until mid next year so let’s hope they come up with a buyer or a solution by then fingers crossed 🤞
 
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All I know is King Island Dairy products were too dear for the average Aussie. Yes, we liked the products but even before I retired on my pension we couldn't afford it much. Usually a once, maybe twice a year treat when we would get one or two items. I always tried to buy Australian made/grown stuff wherever and whenever possible. But sadly, most of them have priced themselves out of the market or severely reduced the customer base. I feel sad for the employees and hope they come out of it okay. I'm a couple of weeks away from my 72nd birthday and so I have seen enormous changes in a multitude if things. Others in my age group will, no doubt, remember a lot too.
 

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