Friday 9 October 2026
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Rescue deal saves WA dairy brands Mundella and Margaret River from collapse

Local processor Artisanal Market buys brands and assets, plans to restart production at Margaret River facility

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Two landmark West Australian dairy brands, Mundella Foods and the Margaret River Dairy Company, have been rescued from liquidation through a sale to local processor Artisanal Market. The deal, for an undisclosed sum, will keep the brands on supermarket shelves and shift production to an export-approved facility near Margaret River, with the original Mundijong plant mothballed due to its poor condition.

Mundella Foods and the Margaret River Dairy Company went into liquidation in August, leaving creditors owed millions of dollars. Artisanal Market, a local processor jointly owned by PenAgri Group and Research Corporation, has purchased the brands and assets including processing facilities in Perth and Margaret River.

Kevin Sorgiovanni, managing director of Artisanal Market and founder of Harvey Fresh, said he had been interested in buying the companies since 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," he 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."

Artisanal Market plans to manufacture both brands of yoghurt at the export-approved Metricup processing facility near Margaret River, starting at 2 million litres per year with capacity for 10 million litres. The original Mundijong facility near Perth will be mothballed. Mr Sorgiovanni said the new owners have plans to target the Asian market for broader sales, but first priority is to get Mundella back onto WA shelves.

The revival is welcome news for dairy farmers across southern WA, although challenges remain. WA Farmers Dairy Council president Ian Noakes said he was keen to see how Artisanal Market would secure milk supply, noting that most milk in WA is contracted and the main companies are reluctant to release supply. "So it would be a matter of waiting probably until somebody comes out of contract to get a milk supply," he said. Mr Noakes hoped the additional competition would improve price points for local dairy farmers.

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Analysis

Why This Matters

  • The rescue preserves two well-known WA dairy brands that were at risk of disappearing from supermarket shelves, protecting consumer choice.
  • The deal brings a new processor into the WA dairy market, potentially increasing competition for farmers' milk supply and improving farmgate prices.
  • Plans to export to Asia could open new markets for WA dairy products, boosting the local industry beyond the state's population.

Background

Mundella Foods and the Margaret River Dairy Company were landmark WA dairy brands that went into liquidation in August 2026 with creditors owed millions of dollars. The brands had previously been owned by Chinese-owned Manassen Foods, which sold them in 2023 to The Cheeky Cow, a company that subsequently collapsed. Local processor Artisanal Market, led by Harvey Fresh founder Kevin Sorgiovanni, has now acquired the brands and assets. The WA dairy industry is relatively concentrated, with most milk supply under long-term contracts with major processors, making it difficult for new entrants to secure raw milk.

Key Perspectives

Kevin Sorgiovanni (Artisanal Market managing director): Sees the acquisition as an opportunity to revive the brands, add value to the WA dairy market, and eventually expand into Asian export markets. The first priority is restoring local supply. Ian Noakes (WA Farmers Dairy Council president): Welcomes the additional competition but is cautious about milk supply availability, noting most WA milk is locked into contracts with existing processors. He hopes the deal will improve price points for farmers. Creditors and liquidators: The liquidation process left creditors out of pocket by millions, and the sale likely recovers some value but not the full amounts owed. The exact impact on creditors is not detailed in the sources.

What to Watch

  • How Artisanal Market secures milk supply for the Metricup facility, particularly whether it can attract farmers coming off contracts with major processors.
  • Whether the export push to Asia materialises and at what scale, given the initial production target of 2 million litres per year with capacity for 10 million.
  • The condition of the mothballed Mundijong facility and whether it could be revived in future if demand grows.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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