Mundella yoghurt returns to shelves as deal revives collapsed WA dairy brands
A rescue deal has saved two iconic Western Australian dairy brands, Mundella Foods and Margaret River Dairy Company, from liquidation. The brands have been bought by local processor Artisanal Market, which plans to revive yoghurt production near Margaret River.
A late rescue deal and sale is set to keep two landmark West Australian dairy brands on supermarket shelves. Mundella Foods and the Margaret River Dairy Company went into liquidation in August, with creditors owed millions of dollars.
Local processor Artisanal Market has bought the brands and assets, including processing facilities in Perth and Margaret River, for an undisclosed sum. Mundella Foods' operations near Mundigjong will not be used for processing by the new owners.
Artisanal Market managing director Kevin Sorgiovanni founded another well-known WA dairy and juice brand, Harvey Fresh. He said he had been interested in buying the companies back in 2023, when they were sold by Chinese-owned Manassen Foods to The Cheeky Cow, which has since collapsed.
"It hasn't been an easy road," Mr Sorgiovanni said. "We saw the Mundella and Margaret River business as a great opportunity for the South West and also to add some value back to the WA dairy market."
Mr Sorgiovanni said both brands of yoghurt would be manufactured at the export-approved Metricup processing facility near Margaret River. Artisanal Markets will mothball Mundella's original manufacturing facility at Mundijong, near Perth, because of its poor condition.
Overseas sales a goal
Artisanal Markets is jointly owned by PenAgri Group and Research Corporation. Mr Sorgiovanni said the new ownership had plans to target the Asian market for broader sales.
"We want to do more than just the WA market," he said. "But, firstly, what's really important is to get Mundella back onto the WA shelves here locally."
Mr Sorgiovanni said production at the Metricup facility would start at 2 million litres a year, but it had the capacity for 10 million litres.
Positive news for farmers
The revival is welcome news for dairy farmers across southern WA, but challenges remain. WA Farmers Dairy Council president Ian Noakes said he was keen to see how Artisanal Market would secure milk supply.
"Most of the milk in WA is contracted, and the main companies are not very good at letting a bit of milk go to somebody else," he said. "So it would be a matter of waiting probably until somebody comes out of contract to get a milk supply."
Mr Noakes hoped the additional competition would improve the price points for local dairy farmers.