Lexi Webster
Farmers Union is a brand that was established in South Australia in 1893. The brand's head office was transferred to Adelaide in 1895, and it has since become synonymous with the region. The company was originally involved in the dairy business, with a factory in Stansbury that produced butter, and later, a factory in Murray Bridge. Over the years, the company has diversified its product offerings and has become well-known for its iced coffee, which was launched in 1977 and is now Australia's largest-selling flavored milk beverage. The brand has a strong following among South Australians, who have embraced the product as a part of their local culture.
| Characteristics | Values |
|---|---|
| Year founded | 1893 |
| Headquarters | Adelaide, Australia |
| Founder | Group of dairy farmers |
| Year launched Iced Coffee | 1977 |
| Area served | South Australia |
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What You'll Learn
Farmers Union Iced Coffee
The brand has a strong connection to South Australia and its history. The South Australian Farmers' Union, which was established in 1895 with its head office in Adelaide, diversified its business over the years to include dealing in wheat-sacks, machinery, and superphosphate. They also operated a fleet of boats for collecting milk and cream from 1919 to the mid-1940s. In 1923, the union opened a factory in Stansbury, producing 2,400 pounds of butter per week at its peak.
The company has also shown a playful side with its product innovations. Following the success of an Iced Coffee-flavoured doughnut, Farmers Union expanded its range to include other service station items with the same flavour, including LPG barbecue gas bottles. This unique offering was met with a combination of curiosity and enthusiasm, showcasing the brand's ability to capture the imagination of its South Australian fan base.
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$20.93
South Australian Farmers Union
The South Australian Farmers Union, also known as Farmers Union, is a brand with a long history in South Australia. The union declared its first profit in 1893, and in 1895, the head office was moved to Adelaide. Over the years, the South Australian Farmers Union diversified its business to include dealing in wheat-sacks, machinery, and superphosphate.
In 1923, the union opened a factory in Stansbury, producing butter and dairy products. With increasing wool prices, the union adapted by replacing cows with less labour-intensive sheep. The union continued to expand, opening another factory in Murray Bridge in 1922. From 1919 to the mid-1940s, the South Australian Farmers Union operated a fleet of boats for collecting milk and cream, with the Loyalty, the Union, the Co-operation, and the Progress among its fleet.
The brand is particularly known for its popular Farmers Union Iced Coffee, which has become a staple in South Australia and enjoyed a high profile for its creative commercials. In 2003, Australians consumed over 22 million litres of the drink, making it the country's best-selling flavoured milk drink at the time. The popularity of Farmers Union Iced Coffee has led to its inclusion on the menus of some McDonald's, KFC, and Hungry Jack's restaurants across Australia.
In recent years, there have been changes in ownership of the brand. In 2019, news emerged that a Chinese-owned company, China Mengniu Dairy, would be taking over the parent company of Farmers Union Iced Coffee, which was previously owned by the Japanese company Kirin. This led to some consumer anger and discussions of a potential boycott. However, representatives from the SA Dairyfarmers' Association urged consumers not to boycott the brand, arguing that it would only hurt South Australian workers and that the sale would be beneficial for business.
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Diversification of business
In its early years, Farmers Union, then known as the South Australian Farmers' Union, diversified its business to include dealing in wheat-sacks, machinery, and superphosphate. They also ventured into dairy farming and operated a fleet of boats for milk and cream collection. As the market dynamics changed, they responded to the increasing wool prices by transitioning from cows to sheep, recognising the greater returns and reduced labour intensity of sheep farming.
The South Australian Farmers Union continued to innovate and diversify. In 1923, they opened a factory in Stansbury, producing 2,400 pounds of butter per week at its peak. They also established irrigation settlements along the lower Murray River and developed a dairy industry in the region. This diversification into dairy led to the creation of their iconic product, Farmers Union Iced Coffee, in 1977. The beverage was developed by a group of dairy farmers for the Royal Adelaide Show and has since become Australia's largest-selling flavoured milk, with over 27 million litres consumed annually.
Building on the success of their iced coffee, Farmers Union has further diversified its product range. They have launched innovative products like the Iced Coffee-flavoured doughnut and LPG gas, leveraging the brand loyalty of South Australians. The company has also expanded into merchandise and general service station items, solidifying their presence in the market and capturing new revenue streams.
Farmers Union's ability to diversify its business has been a critical factor in its longevity and success. By remaining agile and responsive to market trends and consumer demands, they have cultivated a strong brand presence in South Australia and beyond. Their diversification strategy has allowed them to adapt to changing market conditions, ensuring sustained growth and relevance in a dynamic business landscape.
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Ownership history
Farmers Union is an Australian brand with a long history dating back to the late 19th century. The brand has its roots in South Australia, where it was established by a group of innovative dairy farmers.
The Early Years (1890s–1920s):
In 1893, the union declared its first profit, and two years later, the head office was moved to Adelaide, solidifying the brand's presence in South Australia. Over the next few decades, the South Australian Farmers Union diversified its business, dealing in wheat-sacks, machinery, and superphosphate, in addition to its dairy operations.
Dairy Expansion (1920s–1940s):
The 1920s marked a significant period for the South Australian Farmers Union's dairy business. In 1922, they opened a factory in Murray Bridge, and in 1923, a butter factory in Stansbury, which, at its peak, produced 2,400 pounds of butter weekly. The union also operated a fleet of boats for milk and cream collection during this era, with the Loyalty, the Union, the Co-operation, and the Progress being part of their fleet.
Changes in Ownership (1970s–2020s):
The brand underwent several ownership changes in the latter half of the 20th century and early 21st century. In 1978, the company was taken over by the South Australian Farmers Union and Dairy Vale, becoming part of the Adelaide Steamship Company. In 1991, it was included in the public float of National Foods, which was later acquired by Lion Nathan in 2007. Subsequently, in 2019, China's Mengniu Dairy purchased Lion Dairy from Kirin. The most recent change in ownership occurred in 2020 when Bega Cheese purchased Lion Dairy & Drinks for $534 million.
Farmers Union has become an iconic brand in South Australia, particularly known for its iced coffee, which was launched in 1977. The brand has a strong connection to the state and its consumers, as evidenced by its limited-time rebranding to 'Fathers Union' Iced Coffee to celebrate Fathers' Day.
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Farmers Union head office
The Farmers Union head office was transferred to Adelaide in 1895. The South Australian Farmers' Union opened a factory in Stansbury in 1923, which produced 2,400 pounds of butter a week at its peak. In 1922, the South Australian Farmers Union opened another factory in Murray Bridge.
The company was taken over by the South Australian Farmers Union and Dairy Vale in 1978. The same year, the now-iconic Farmers Union Iced Coffee was launched by a group of dairy farmers who were creating a new recipe for the Royal Adelaide Show. The milk beverage is Australia's largest-selling flavoured milk, with Australians consuming over 27 million litres of the beverage each year.
In the years since, the Farmers Union brand has expanded to include LPG gas, doughnuts, and other service station items, all flavoured like their famous iced coffee.
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Frequently asked questions
Yes, Farmers Union is Australian-owned. It was launched in 1977 by a group of South Australian dairy farmers who were creating a new recipe for the Royal Adelaide Show.
Farmers Union is known for its iced coffee, which is Australia's largest-selling flavoured milk. It is also known for its Iced Coffee-flavoured doughnuts and LPG gas.
Farmers Union Iced Coffee is made in Salisbury, South Australia.
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