SAPUTO Dairy Australia (SDA) has announced its intention to further optimise its operating model by entering into a definitive agreement with Coles Group Limited to sell its fresh milk manufacturing sites at Laverton North (Victoria) and Erskine Park (NSW).

The transaction is subject to customary conditions, including clearance from the Australian Competition and Consumer Commission (ACCC), and is expected to close in the second half of calendar 2023.

Fresh milk products remain an important part of SDA’s business, and as part of the sale agreement with Coles Group Limited, SDA will continue to have fresh milk products processed at these two manufacturing facilities.

SDA will work closely with its customers through the transition to ensure these changes have minimal impact and intends for its loyal consumers to continue enjoying its diverse range of dairy products.

There will also be no changes to its valued farmer relationships, with suppliers’ milk continuing to be collected and processed throughout Victoria, New South Wales and Tasmania.

“We’re continually working to ensure we have the right manufacturing footprint and product offering to enhance our position as a high-quality, low-cost processor,” Saputo Inc.’s chair of the board, president and chief executive Lino A. Saputo said. “This marks an important step in executing our long-term vision for success in Australia as we maintain a sharp focus on efficiency to ensure we maximise the return on every litre of milk.”

The sites employ around 48 people.

All employees will receive an offer to transfer their employment to Coles Group Limited, and SDA will work closely with the site teams to support them through this changeover.