Kirin Holdings Co. said Thursday it has its eye on Dairy Farmers after the Australian Financial Review reported it bid $900 million Australian dollars (¥84 billion) for the milk processor.
"We're interested" in Dairy Farmers, Kirin spokesman Makoto Ando said, declining to comment on the report. In a February interview, Kirin President Kazuyasu Kato said Japan's biggest beverage maker might bid for Dairy Farmers.
Dairy Farmers is seeking offers for the company or for joint-venture proposals on behalf of the 2,000 farmer-shareholders who supply the group's milk. Buying it would give Tokyo-based Kirin more than half of Australia's milk and dairy market after it purchased National Foods in November to offset declining sales at its domestic beer business.
Sydney-based Dairy Farmers is Australia's second-largest seller of fresh milk, making it attractive to rivals, including National Foods and Fonterra Cooperative Group, wanting to increase sales in the fast-growing market for dairy drinks and yogurt.
Dairy Farmers, which owns brands including Ski yogurt and Coon cheese, has been closing unprofitable units and cutting staff.
Profit rose to A$11.2 million in the six months ended Dec. 31, from A$100,000 a year earlier. Sales rose 14 percent to A$654.2 million.
"There is no mistake that Dairy Farmers would be a very good partner with a quality product lineup," Kirin's Kato said on Feb. 18.
Japanese beer companies are facing falling domestic beer sales as the population ages and younger consumers switch to wine and other beverages. Total beer shipments fell 0.3 percent last year to the lowest level in at least 15 years.