The new owners of King Island Dairy, Graeme Wilson and Nick Dobromilsky, say they will introduce softer and creamier cheeses while respecting the “artisanal traditions and rich heritage” of the business.
The Tasmanian government has supported the acquisition with more than $10 million in support over 10 years, including payroll tax and stamp duty relief.
What’s next?
The new owners say they will give all staff the opportunity to move over to the new company. Mr Dobromilsky says new equipment will need to be sourced from Europe to develop new products.
The new owners of King Island Dairy have flown to the island and hit the factory floor, promising to “get the business back up and firing” after rescuing it from closure.
Australian businessmen Graeme Wilson and Nick Dobromilsky acquired King Island Dairy last week under the newly formed joint family venture ‘King Island Dairy 2’, taking over from multinational Saputo.
“I’m very confident in the product … and we can just build on new product development and also improving quality to continue to be the best cheese in Australia.”
Mr Wilson said the pair planned to invest in product innovation, while respecting the “artisanal traditions and rich heritage” of the business.
“The future of King Island Dairy is about more than preserving its past — it’s about building a sustainable, thriving business that continues to support the local community,”
he said.
Softer cheeses expected to chase changing consumer tastes
While the award-winning blues are expected to carry on, Mr Dobromilsky confirmed one change would be making “creamier” and “softer” versions of other cheeses like brie, which would require new equipment from Europe.
“I can’t buy [the equipment] here in Australia, so it would be at least a 12-month project to get that installed,” he said.
“We do have to launch some new products — consumers’ tastes have changed a little bit.”
King Island Dairy’s new owners plan to introduce creamier and softer cheese products. (ABC News: Ebony ten Broeke)
Tasmanian Premier Jeremy Rockliff said the purchase had been supported by government incentives totalling $10 million over 10 years.
That included payroll tax and stamp duty relief, a loan and costs associated with capital works.
Mr Dobromilsky said he could not disclose the sale price due to a confidentiality agreement with Saputo.
Sale process ‘wasn’t well known’
The dairy’s previous owner, Saputo, announced plans to sell the business in 2023. (Facebook: King Island Dairy)
Canadian-headquartered Saputo first listed the King Island business for sale in 2023, before announcing in September last year it would be closing the 120-year-old dairy.
Premier Jeremy Rockliff and King Island Mayor Marcus Blackie later accused the dairy processing behemoth of trying to kill off the island business in order limit competition for its other brands. Saputo never responded to requests for comment.
Mr Dobromilsky said it was news of the closure that triggered a flurry of interest from potential buyers.
“The whole process, it wasn’t well known the company was up for sale,” he explained.
“So we only got involved very late in the process when we heard on the news as well that it was shutting down.
“They had a lot of inbound inquiries when it got in the media that it was shutting down, with over 50 people putting their hands up and we were one of the ones in the final stages. It was a competitive process in the end.”
New owners aim to support locals
“We’ll offer all staff the opportunity to move over to our new company … we’re really excited that everyone will come across to us,” Mr Dobromilsky said.
However, the pair face a challenge when it comes to milk supply.
Once famed for its many dairy farms, just three are still in operation on the island.
The acquisition includes the full transfer of King Island Dairy’s factory, brand, and intellectual property. (ABC News: Jeremy Story Carter)
Two of those were included in the sale along with 2,500 dairy cows.
Mr Dobromilsky, who plans to take the lead in managing the business, said the island was perfect for dairying.
Getting products off the island for a reasonable cost adds another layer of complexity.
Mr Wilson said he had extensive experience in manufacturing and supply chain management through his family-owned business, Garden City Plastics Group, and as the former owner of The Décor Corporation, which supplied products to Woolworths and Coles.
The pair also own Olympus Cheese, Queensland’s largest Mediterranean cheese manufacturer.
The acquisition includes the full transfer of King Island Dairy’s factory, brand, and intellectual property, as well as the Burnie-based Heidi Farm, its brand, and intellectual property.
Locals hope for local milk to be sold in shops
Audrey Hamer, owner of King Island Bakehouse, says she became emotional upon hearing the dairy had been saved from closing. (Facebook: King Island Bakehouse)
Despite years of pumping out gourmet cheeses, other dairy products have long been in short supply on the island.
King Island Bakehouse owner Audrey Hamer said some locals were hoping the new owners might consider bringing back the boutique cheeses, yoghurt and cream that used to be produced on the island, as well as introducing fresh milk.
“It’s nearly $9 for two litres of fresh milk [in the shops] now,” Mrs Hamer said.
“But if they bring in the fresh milk … with us having the bakery with the coffees we use a lot of milk — it’d just be fantastic for the island in general.”
Mrs Hamer said she had become emotional on Friday as she shared the news of the sale with her customers, and joined a couple of other locals in sponsoring celebratory kegs and snacks at the pub.
“There’s a lot of people that work there, so if it had closed, they probably would have left the island,”
she said.
“I heard Nick [Dobromilsky] is actually coming to live here with his family. One of the owners will get ‘hands on’ in the place, so he’s there to oversee everything.
“It’s going to be awesome.”
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