Warrnambool Cheese & Butter

OVERALL
Owned	CAN
Rating

Dairy producer

One of Australia's biggest dairy companies. Established in 1888. Canadian dairy giant Saputo acquired an 88% stake in Jan 2014, and the remaining shares in Mar 2017. Saputo also bought Murray Goulburn in 2018 and has begun to integrate the two companies under the name Saputo Dairy Australia.

Company Ownership

Warrnambool Cheese and Butter Factory Company Holdings Ltd	AUS	website	email
Saputo Dairy Australia Pty Ltd       owns 100% of Warrnambool Cheese and Butter Factory Company Holdings Ltd	AUS	website	email	facebook	twitter
Dairy product manufacturing Saputo Dairy Australia was formed in 2018 when Canadian dairy giant Saputo bought Murray Goulburn Co-operative for $1.3 billion. Murray Goulburn Co-operative was previously owned by Australian dairy farmers and formed by farmers in the state of Victoria, Australia in 1950. Saputo also bought Warrnambool Cheese and Butter Factory Company in 2014 and has begun to integrate the two companies under Saputo Dairy Australia.
Saputo Inc           owns 100% of Saputo Dairy Australia Pty Ltd	CAN	website	email
Dairy processor Largest dairy processor in Canada, and the twelfth largest in the world. Majority owned by the founding Saputo family. Founded in Canada in 1954, the company has expanded by mergers and acquisitions, particularly the USA, UK, Germany and Argentina. Acquired Australian dairy companies Warrnambool Cheese & Butter in 2014 and Murray Goulburn in 2018, and has begun to integrate the two companies under the name Saputo Dairy Australia.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
Warrnambool Cheese and Butter Factory Company Holdings Ltd
		Fined by the EPA In Aug 2018 the VIC Environment Protection Authority (EPA) issued a $7,929 penalty notice to this company for expanding its Allansford operations without a works approval. [Source 2018][More on Habitats] Environmental claims This company has envionmental claims on its website, including participation in water, energy and waste assessment programs and industry projects to assist in determining where they can improve their resource efficiency. [Source 2012][More on Environmental Claims]
Saputo Dairy Australia Pty Ltd
Australian Packaging Covenant signatory Signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation. [Source 2020][More on Packaging]		Breaching advertising codes This company has been criticised for offensive advertising. In 2013/14 the Advertising Standards Bureau upheld complaints about five ads by this company on the grounds that they breached advertising codes. The ads were subsequently discontinued or modified. [Source 2014][More on Irresponsible Marketing] Murray Goulburn fined for disclosure breach In 2017 the Australian Securities and Investments Commission (ASIC) fined Murray Goulburn $650,000 over an alleged breach of its disclosure obligations in the lead-up to a dramatic price cut paid to its farm suppliers in April 2016. Company ownership has since changed. [Source 2017][More on Governance] Excessive executive pay Former Murray Goulburn boss Gary Helou pocketed $10 million as farmers struggle to break even after reduced farm-gate prices for milk. Now Mr Helou, who owns a $3.2 million luxury NSW home, has been named in a shareholder class action lodged in the Supreme Court which claims Murray Goulburn knowingly made misleading statements about forecast profits and production. [Source 2016][More on Finance] Pending class action This company and its eleven directors has been named in a shareholder class action lodged in the Supreme Court in May 2016 which claims Murray Goulburn knowingly made misleading statements about forecast profits and production as it embarked on its $500 million pre float raising. [Source 2016][More on Finance] Cuts to farm-gate price In April 2016 Murray Goulburn reduced its farm-gate price for raw milk from an average of $5.60 to $4.75-$5. This was criticised as below the cost of production. [Source 2016][More on Finance] Packaging Award 2014/5 Murray Goulburn won awards in 2014 and 2015 from the Australian Packaging Covenant, for demonstrating their commitment to environmental sustainability by performing 'above and beyond' in their efforts to minimise waste. This company achieved the highest overall score in their category, most improved. [Source 2015][More on Packaging] MAIF signatory This company is a signatory to the Manufacturers and Importers Agreement 1992 (MAIF), a voluntary self-regulatory code of conduct between the manufacturers and importers of infant formula in Australia. The MAIF Agreement aims to contribute to the provision of safe and adequate nutrition for infants, by the protection and promotion of breastfeeding and by ensuring the proper use of breast milk substitutes, when they are necessary, on the basis of adequate information through appropriate marketing and distribution. [Source 2019][More on Irresponsible Marketing] No tax paid in 2016/7 According to data released by the Australian Tax Office in Dec 2018, this company was one of 2,159 local and foreign-based companies that paid no tax in Australia in 2016-17. Please note however that companies pay income tax on profits, not revenue (total income). While some companies use tax havens and loopholes to avoid paying their fair share of tax in Australia, other companies that paid no tax have perfectly legitimate reasons. [Source 2018][More on Finance]
Saputo Inc
	20/100 S&P Global ESG Score This company received an S&P Global ESG Score of 20/100 in the Food Products category of the 2019 SAM Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices. The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices. [Source 2019][More on Sustainability Reporting]	Possible GE in Canada brands This company has products rated RED in Greenpeace Canada's "How to Avoid Genetically Engineered Foods" Shoppers Guide. Products on the RED list are likely to contain GE or GE-derived ingredients from the most widely grown GE crops, usually corn, soy, canola or cotton. Companies on this list have confirmed that their products may or are likely to be made with GE ingredients, or have not denied using GE foods when given the opportunity to do so. [Source 2013][More on Genetic Engineering] Fined for worker death in Canada This company was fined C$187,500 after a worker was killed by a cheese cutting machine. The Ontario Court of Justice levied the fine on May 1, 2018 after the company pleaded guilty to failing to ensure a pinch point was guarded resulting in the worker's death in December 2016. [Source 2018][More on Workers Rights] Environmental claims This company has a number of environmental claims on its website. [Source 2013][More on Environmental Claims] CDP Climate Change Score of C In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of C. [Source 2019][More on Climate Change] CDP Water Security Score of C In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of C. [Source 2019][More on Human Rights] Response to cow abuse video A 2015 Mercy For Animals Canada investigation revealed animal abuse at Chilliwack Cattle Company - a major Saputo dairy supplier. Saputo responded by releasing a new animal welfare policy and saying it will refuse to buy milk from farmers that don't treat their animals humanely. The policy also commits to eliminating the practice of cutting or docking the cow's tail, administering pain control when dehorning cattle and reducing stress on cows through low-energy animal handling methods. [Source 2015][More on Animal Rights] Tier 4 in farm animal welfare rankings The 2019 Business Benchmark on Farm Animal Welfare (BBFAW) report ranks global food companies on how they are managing and reporting their farm animal welfare policies and practices. This company appeared in tier 4, "Making progress on implementation", with tier 1 being the best, and tier 6 the worst. [Source 2019][More on Animal Rights]

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Canada's Saputo acquires Warnambool Cheese and Butter
13th Feb 2014 — Saputo's takeover offer for Warrnambool Cheese and Butter Factory has closed, with the Canadian dairy giant holding just shy of 88% of the Australian processor. In a statement issued to the Australian stock exchange, Saputo said it had "acquired a relevant interest of 87.920% of Warrnambool shares". Saputo, which beat off bids for WCB from Australian firms Bega Cheese and Murray Goulburn, added: "Saputo looks forward to working closely with the board and management of Warrnambool to pursue Warrnambool's strategic objectives and continue to grow its business. At this stage Saputo expects that Warrnambool will remain listed on ASX, unless and until Warrnambool no longer meets criteria for listing." Japanese food and drinks giant Kirin Holdings has retained its 9.99% stake in WCB, shares acquired through Australian dairy arm Lion. Read more...   [source]