Major beverage company, Lion has announced that it will be putting its subsidiary Lion Dairy and Drinks up for sale. Deutsche Bank is appointed as the investment bank coordinating the sale process while King and Wood Mallesons has been appointed legal adviser. Greenhill and Co Australia have also been appointed as an independent financial adviser.

“Following careful consideration, we believe a sale of LDD is the best option to set both Lion and LDD up with the capital and resources needed to grow into the future. LDD has been transformed and now has a sound platform for future growth. It’s clear from the further work done in recent weeks that LDD’s strategy to more fully leverage growing consumer wellness trends will require new capabilities and capital investment. The sale process will focus on finding the right owner to take LDD forward and unlock its full potential,” said Lion CEO, Stuart Irvine.

The remaining Lion business still has a number of growth avenues available and the decision to sell LDD will achieve the capital needed to accelerate investment. Lion as already begun building a brand portfolio of more premium, crafted non-alcohol beverages alongside its core beer brands as well as investing in the hot beverage market with brands such as Schibello coffee in Australia and Good Patron in New Zealand which are both showing promising early signs.

“Our Lion Global Markets (LGM) business has made great progress with Little Creatures now available in 30 global cities, the acquisition of the Fourpure craft beer brand in the UK and continued growth in our fine wine business in North America. We intend to back LGM to explore further opportunities in high growth craft beer markets worldwide.”

Lion has said that any sale of LDD will not impact Lion’s alcohol businesses in Australia and New Zealand.