King Island Dairy Saputo owners historical Mafia connections (part 4)

By Tess Lawrence

Continued from Part 3

2019

Saputo Announces Agreement with Japan’s Kirin to Acquire King Island and Burnie Specialty Cheese Businesses and Factories

In May 2019, Saputo announced it had entered an agreement with booze and drinks conglomerate Lion Dairy and Drinks (owned by Japanese company Kirin) to acquire their specialty cheese businesses, including factories in Burnie and King Island, for $280 million.

2019

In June, Saputo Jr was upbeat about milk and the future when he spoke with ABC Radio’s Nikolai Beilharz on the Victorian Country Hour.

Saputo optimistic about dairy future – ABC listen.

2019

Meanwhile in the UK…

On July 1, Saputo announces it is ditching the name of the well known Dairy Crest brand in favour of Saputo Dairy UK.

2020

CBC Radio-Canada Drops Explosive Documentary About Saputo and Mafia Boss Joe Bonanno

On January 16, CBC’s Radio Canada’s investigative current affairs show Enquete released its explosive documentary in French Les trous de mémoire de Lino Saputo.

The program ripped apart Lino Saputo’s version of his dealings with mafia mobster Joe Bonanno – and exposed the extensive business relationship between the two parties – as well as monies and stakes invested in Saputo family companies and entities.

The exposé also included footage and segments of Sharon Kha’s 1981 documentary and provided evidence to substantiate its claims. It caused a sensation in international business, political and food circles.

Key points in this video that may be of particular interest for fact checking:

Enquete’s forensic evidence and examination of the relationship between Saputo and Bonanno – and the extent of that relationship came as no surprise to some, quite a shock to many. For others it merely confirmed loud rumour.

The evidence pointed to why authorities in New York denied Canadian Lino Saputo a licence to operate a cheese making business in The Big Apple, home base of ‘The Big Banana’ himself, who was once among America’s younger (if not the youngest) mafia Dons at the age of 26, ruthless mobster Joseph Bonanno.

They may not have been besties, but you can see why when Lino Saputo testified under oath that he had met Joseph Bonanno only once, it was rather naughty of him.

Judge Rules Saputo Made Material Statements that are “False, Misleading and Deceitful.”

However, retired appeals court Judge Charles D. Breitel put it in more direct legal summation when he found:

“Joseph Bonanno has had significant economic and transactional involvement over a substantial period of years with several Canadian cheese companies owned by the members of the Saputo family and by Lino Saputo in particular,”

“Lino Saputo has attempted to conceal from the Department his and his companies’ involvement with Bonanno, he has failed to furnish all the material information required by the Commissioner, and has made material statements that are false, misleading, and deceitful.”

2020

CBC’s flagship nightly six day news show, The National had also been investigating the Saputo’s mafia connections for some time. Below is a YouTube segment from one of their episodes posted January 17, 2020:

2020

On January 20, 2020 at precisely 5.26pm Eastern Standard Time, Canada’s national public radio and television broadcaster, the Canadian Broadcasting Corporation (CBC) was unequivocal in its headline about Saputo lying about his dealings with Mafia mobster Bonanno:

“Quebec dairy mogul Lino Saputo had secret past dealings with U.S. mobster Joe Bonanno, then lied about it”

The sub headline doubled down:

“Billionaire denied having past Mafia contacts in his memoir, but police evidence tells a different story”

2020​

Saputo announces it is moving towards more plant based drinks. Lino Saputo Jr tells the ABC’s Victorian Country Hour’s Peter Somerville he “could not be more delighted.” Says there won’t be any more plant closures. “We believe that dairy is not dead…”

Really?

2020

On August 27, the Australian Competition and Consumer Commission (ACCC) warned Saputo over its failure to publish its Dairy Code Agreements on time.

From the ACCC’s website:

“… Dairy processor Saputo Dairy Australia (Saputo) will review and improve its internal processes after the ACCC concluded it was likely to have breached the mandatory dairy code of conduct by failing to publish its milk supply agreements by the required deadline of 2.00pm on 1 June 2020.

Saputo published the milk supply agreements it intended to offer for the 2020-21 milk season at around 3.00pm on 1 June.

The ACCC investigated the events surrounding Saputo’s failure to publish by the deadline set by the code, and obtained evidence that the delay was caused by a very late technical failure, which Saputo took immediate steps to correct…”

2021

Meanwhile, in Scotland…

On May 24, Saputo announced it had bought vegan cheese (Sheese) maker and plant based foods manufacturer, Bute Island Foods Ltd, just off the West Coast of Scotland, that employed 180 people.

Scott Reid of The Scotsman newspaper, wrote:

“…Saputo paid some £109 million to buy both Bute Island Foods, which employs about 180 staff, and a factory owned by Wisconsin Specialty Protein in Reedsburg…

The new owner has pledged more £3m over five years to support community initiatives on Bute as part of its wider commitment to invest 1 per cent of its pre-tax profits each year in community programmes and organisations.

…The new owner has pledged more £3m over five years to support community initiatives on Bute as part of its wider commitment to invest 1 per cent of its pre-tax profits each year in community programmes and organisations…”

2022

Saputo Kills Maffra, Cobram Jobs and Factories

From the ABC:

Program: Dairy giant Saputo announces 18 job cuts and milk factory shutdowns

On February 9, on the ABC’s important Victorian Country Hour radio program presented by Warwick Long, he discussed yet another of Saputo’s killing off of Australian based entities, this time it involved slicing 18 jobs at their Maffra and Cobram dairy factories in Victoria, as well as factory shutdowns.

Here’s the segment:

Saputo On “the nose” in Tasmania

I’ve had contact with dozens of people for months about Saputo, and as one Taswegian said… “It’s on the nose here.”

Others were not as polite.

2023

Saputo sells Laverton North and Erskine Park Fresh Milk Process Plants to Notorious Supermarket Bully, Coles

In May 2023, the Australian Competition and Consumer Commission announced it was giving a mere 21 days for submissions concerning Saputo selling out two fresh milk process plants to one of Australia’s two notorious supermarket bullies, Coles.

“… Coles proposes to acquire Saputo’s facilities in Laverton North (Victoria) and Erskine Park (New South Wales). These facilities produce fresh milk for Saputo’s Devondale brand, and for other parties, including Coles, for on-sale as own brand products…”

Guess what? You guessed it! The ACCC gave the process a little wombat stamp.

The combined Down, Down, Down clearance sale price of the two entities is said to be ridiculously cheap at $105 million.

Maybe it’s not too late to cry over spilled milk.

As The Guardian’s Aston Brown pointed out in his essential article:

“… Before the takeover, Coles already acquired about 80% of milk processed at the facilities, buying raw milk from producers and processing it at the plants under an agreement with Saputo…”

Brown pointed out that Coles is the only supermarket in Australia to own and operate a milk processor.

How could this be allowed to happen? Because the regulator gave it the thumbs up.

From the article:

“The Australian Competition and Consumer Commission said it approved the takeover by Coles after months of “careful consideration” and “discussions” with farmers and industry bodies, and a “detailed review” of Saputo and Coles’ internal documents…

… The president of advocacy body Australian Dairy Farmers (ADF), Rick Gladigau, said he opposed the decision.

“We hope that in 10 years’ time we are not saying ‘we told you so’, like we have said about the impact of $1 litre milk that Coles started in 2011,” Gladigau said.

“We cannot see how this deal will result in anything but increasing Coles’ already substantial market power, reducing market competition and market transparency, and increasing risk to farmers…”

2024

Saputo’s Workers in Tassie Seek Pay Equity With Mainland

On April 23, the Australian Manufacturing Workers’ Union (AMWU) called for fairness from Saputo.

The headline:

Saputo Dairy Workers Strike For Mainland Wage Rates, Tasmania No Longer The Poor Cousin

From the website:

“… Saputo workers are the latest in a tranche of workers in Tasmania fighting for industry rates of pay and mainland wages. Tasmanians are no longer the poor cousins of the mainland.

The Australian Manufacturing Workers’ Union is seeking Saputo Dairy address the discrepancy between Tasmanian wages and the mainland which have been ignored during enterprise bargaining negotiations.

Workers on sister sites in Victoria earn 21% more than their colleagues in Burnie. The AMWU is asking for pay parity.

The cost of living is impacting Tasmanians as workers struggle with prohibitively high house prices and souring (sic) rents…

“… We are over being the poor cousin here in Tasmania. We shouldn’t be paid less than the mainland. This is unacceptable.”

“Workers at the Burnie factory are more skilled and the site more technical, but the employees just want to be paid like those on the mainland.”

“What’s good in the mainland is good for Tasmania. There’s no argument Tasmanian should earn less than their mainland counterparts.”

2024

Lino Saputo Sr Still Mover and Milk Shaker

On September 20, last year. Jolina Capital Inc issued an important news wire that confirmed that Lino Saputo Senior was still a mover and milk shaker and in succession mode. Here’s the statement:

MONTREAL, Sept. 30, 2024 /CNW/ – 11446037 Canada Inc., a wholly-owned subsidiary of Jolina Capital Inc., Mr. Emanuele (Lino) Saputo, other members of the Saputo family and an affiliate of Caisse de dépôt et placement du Québec (“CDPQ“) today announced that they have entered into agreements to purchase an aggregate of 40,000,000 common shares (the “Purchased Shares“) of Saputo Inc. (the “Corporation”) from an indirect wholly-owned subsidiary of Placements Italcan Inc. (the “Seller“), an entity controlled by Mr. Francesco Saputo (the “Transaction“).

11446037 Canada Inc. is a wholly-owned subsidiary of Jolina Capital Inc., a holding company controlled by Mr. Emanuele (Lino) Saputo, who also has direction of the holding companies of other family members. Prior to the Transaction, Emanuele (Lino) Saputo had beneficial ownership or the power to exercise control or direction, directly or indirectly, of 137,728,100 common shares of the Corporation, representing approximately 32.5% of the issued and outstanding common shares of the Corporation. Following completion of the Transaction, Emanuele (Lino) Saputo has beneficial ownership or the power to exercise control or direction, directly or indirectly, of 164,228,100 common shares of the Corporation, representing approximately 38.7% of the issued and outstanding common shares of the Corporation. 11446037 Canada Inc. acquired Purchased Shares at a price of C$29.12 per share. Mr. Emanuele (Lino) Saputo, Mrs. Mirella Saputo and the holding companies of other Saputo family members acquired Purchased Shares at a price of C$27.96 per share. 11446037 Canada Inc. and such holding companies and individuals (collectively, the “Family Purchasers“) acquired Purchased Shares for investment purpose, and in accordance with applicable securities laws, and may increase or decrease their investment in the Corporation depending on market conditions and other relevant factors. The Family Purchasers acquired Purchased Shares in reliance on the “private agreement exemption” under section 4.2 of Regulation 62-104 respecting Take-Over Bids and Issuer Bids.

Following completion of the Transaction, CDPQ has beneficial ownership or the power to exercise control or direction, directly or indirectly over 19,152,378 common shares of the Corporation, representing approximately 4.51% of the issued and outstanding common shares of the Corporation. CDPQ acquired Purchased Shares at a price of C$27.96 per share.

Prior to the Transaction, Mr. Francesco Saputo had beneficial ownership or the power to exercise control or direction, directly or indirectly, over 42,500,000 common shares of the Corporation, representing approximately 10.0% of the issued and outstanding common shares of the Corporation. Following completion of the Transaction, Francesco Saputo has beneficial ownership or the power to exercise control or direction, directly or indirectly, over 2,500,000 common shares of the Corporation, representing approximately 0.6% of the issued and outstanding common shares of the Corporation, and has no intention of selling the remaining shares of the Corporation in the near future. Mr. Francesco Saputo is selling the Purchased Shares as part of general estate and succession planning.
This press release is being issued pursuant to Regulation 62-103 respecting The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires reports to be filed under the Corporation’s profile on SEDAR+ containing additional information respecting the foregoing matters. A copy of such reports may be obtained by contacting the Secretary of Saputo Inc. at (514) 328-6662.

Emanuele (Lino) Saputo and 11446037 Canada Inc. are located at 6869 Métropolitain Boulevard East, Suite 500, Montréal, Québec, H1P 1X8.

CDPQ is located at 1000 Pl. Jean-Paul-Riopelle, Montréal, Québec, H2Z 2B3.

Francesco Saputo and Placements Italcan Inc. are located at 215 les Érables, Laval, Québec, H7R 1A3.

SOURCE Jolina Capital Inc.”

 

To be continued… (Link to Part 5)

© Tess Lawrence

 

Tess Lawrence is Contributing editor-at-large for Independent Australia and her most recent article is The night Porter and allegation of rape.

 

 

 

 

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