China milk brands ownership claim skims the facts

Jacob Shteyman April 26, 2022
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Dairy Farmers milk is owned by ASX-listed firm Bega Cheese, not the Chinese Communist Party. Image by AP

WHAT WAS CLAIMED

The Chinese Communist Party owns and controls some of Australia’s most popular milk brands.

OUR VERDICT

False. The majority are Australian-owned, with others being subsidiaries of Japanese or Canadian firms.

A social media user has issued a warning to Australian milk lovers at a time when trade1 and political relations2 with China are severely strained.

The Facebook post3 claims Chinese company Mengniu Dairy4, and by extension the Chinese Communist Party5, owns and controls more than 20 Australian dairy brands including Dairy Farmers, Pura, Dare, Vitasoy and Farmers Union.

The claim is false. Most of the brands are owned by Bega Cheese6, an Australian dairy company traded on the Australian Securities Exchange7.

Three are owned by Canadian company Saputo8, one is a subsidiary of Japanese firm Suntory9, and only one - Vitasoy10 - is a joint venture between Bega and Hong Kong-based Vitasoy International Holdings11.

The April 13 post features an image of Chinese Communist Party leaders with various Australian milk products superimposed above them.

"For those in #Australia, just in case you're wondering who owns the milk you drink. China company Mengniu Dairy owns the following brands: Dairy Farmers, Pura, Farmers Union, Masters, Moove, Dare, Vitasoy, Yoplait, Fruche, Divine Classic, YoGo, Big M, Berri, Just Juice, Daily Juice, King Island Dairy, South Cape, Tilba, Timboon, Tasmanian Heritage and Clover Creek," the text above the image reads.

A screenshot of the Facebook post
A Facebook post claims the Chinese Communist Party owns many Australian milk brands.

Bega12 fully owns Dairy Farmers, Pura, Farmers Union, Masters, Dare, Yoplait, Fruche, Divine Classic, YoGo, Big M, Berri and Daily Juice. Flavoured milk brand Moove was discontinued in 2018 to make way for Big M13.

Bega, which started as a dairy co-operative14 in 1899, is still based in the NSW town of the same name. Its largest shareholders15 are predominantly Australian fund managers and investment companies, with the biggest being Tattarang16, owned by17 Australian billionaire Andrew Forrest18's family. 

Of the remaining brands, King Island Dairy, South Cape and Tasmanian Heritage are owned by Saputo Inc19, based in Canada and listed on the Toronto Stock Exchange20. The principal shareholder is Emanuele Saputo21, a member of the Saputo family who founded the company22 in Canada in 1954.

Just Juice is owned by Frucor Suntory23, an Auckland-based subsidiary of Japanese drinks giant Suntory24. The company is privately held and headquartered in Osaka.

AAP FactCheck was unable to definitively identify three brands - Tilba, Timboon and Clover Creek.

The NSW town of Central Tilba is home to Tilba Real Dairy, which states on its website25 it is "a 100% Australian family owned and run business." Timboon26 is a Victorian town with many surrounding diaries, while there's a family-owned Clover Creek27 cheese company in the United States.

Mengniu Dairy28 doesn't own any of the brands named in the post, although it does own Australian formula milk brand Bellamy's Organic29

In 2019, Mengniu sought to buy Lion Dairy and Drinks, then a subsidiary of Japanese beverage company Kirin, but dropped the bid in 202030 after the Foreign Investment Review Board31 blocked the move and Treasurer Josh Frydenberg declared the sale "contrary to the national interest".

Bega subsequently acquired Lion32 and its suite of Australian products in 2021.

AAP FactCheck is an accredited member of the International Fact-Checking Network33. To keep up with our latest fact checks, follow us on Facebook, Twitter and Instagram.

Sources

  1. https://www.dfat.gov.au/geo/china/china-country-brief#:~:text=China%20is%20Australia's%20largest%20two,per%20cent%20during%20this%20period).
  2. https://foreignpolicy.com/2021/11/09/australia-china-decoupling-trade-sanctions-coronavirus-geopolitics/
  3. https://archive.ph/o1rg3
  4. http://www.mengniuir.com/html/about_profile.php
  5. https://www.britannica.com/topic/Chinese-Communist-Party
  6. https://www.begacheese.com.au/
  7. https://www2.asx.com.au/markets/company/bga
  8. https://www.saputo.com/en/our-products/international-sector/dairy-division-australia
  9. https://www.frucorsuntory.com/
  10. https://soy.com.au/
  11. https://www.vitasoy.com/
  12. https://www.begacheese.com.au/wp-content/uploads/2021/10/Bega-Cheese-Ltd-Annual-Report-2021-Interactive.pdf
  13. https://australianfoodtimeline.com.au/1978-launch-of-big-m/
  14. https://bega.net.au/bega-heritage.html
  15. https://www.marketscreener.com/quote/stock/BEGA-CHEESE-LIMITED-9062980/company/
  16. https://www.tattarang.com/
  17. https://www.businessnews.com.au/Company/Tattarang
  18. https://www.forbes.com/profile/andrew-forrest/?sh=f9de2cc15d69
  19. https://www.saputo.com/en/our-products/international-sector/dairy-division-australia
  20. https://money.tmx.com/en/quote/SAP
  21. https://www.forbes.com/profile/emanuele-lino-saputo/?sh=3dd4afb963e6
  22. https://www.saputo.com/en/our-company/history-overview
  23. https://www.frucorsuntory.com/our-brands/
  24. https://www.suntory.com/about/overview/pdf/suntory_cb2022e_0329.pdf
  25. https://tilbarealdairy.com/#about
  26. https://www.aussietowns.com.au/town/timboon-vic
  27. https://clovercreekcheese.com/
  28. https://media-mengniu.todayir.com/202109281648016379950867_en.pdf
  29. https://bellamysorganic.com.au/
  30. https://www.abc.net.au/news/2020-08-25/lion-dairy-china-mengniu-deal-off/12592534
  31. https://firb.gov.au/
  32. https://www.begacheese.com.au/bega-cheese-aquires-lion-dairy-and-drinks-on-25-january-2021/
  33. https://www.poynter.org/ifcn/

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