Japanese beverage company Kirin is selling its dairy products and beverages business unit in Australia as part of its strategic review process.

Called Lion-Dairy and Drinks (LDD), the business produces and distributes milk, dairy beverages, cheese, yoghurt, juice and soy.

The Japanese firm noted that the business delivered significant improvements to its profitability after it was restructured in 2015 under the Turnaround Programme introduced in 2014.

Significant results were also reported under its Kirin Group 2016-2018 Medium-term Business Plan, which was announced in February 2016.

“Kirin and Lion will give consideration to all potential options for LDD, including retaining and investing in the business and a sale of LDD.”

Kirin said in a statement: “Having delivered this improved business performance and re-positioned the business for growth, it is appropriate at this point in time to consider the best pathway forward to maximise its sustainable growth potential for the future.

“Under these circumstances, Kirin and Lion will give consideration to all potential options for LDD, including retaining and investing in the business and a sale of LDD.

“No decision has been made at this time, but we will move forward to complete the strategic review and make an announcement once an outcome has been reached.”

LDD is one of four divisions, which include Lion Beer, Spirits and Wine New Zealand, Lion Global Markets and Lion Beer Australia. It purchases around one billion litres of milk from 550 farms in Australia every year to produce a range of full cream, flavoured and modified fresh and ultra-high temperature processing (UHT) milks.