Canadian Manufacturing

Sobeys selling former Safeway dairy operation for $356M

by The Canadian Press   

Canadian Manufacturing
Operations Food & Beverage Agropur dairy mergers and acquisitions Sobey's

Quebec-based dairy co-op Agropur buying milk, yogurt and ice cream manufacturing operations from Sobeys

STELLARTON, N.S.—Sobeys Inc. is selling its milk, yogurt and ice cream manufacturing operations in Western Canada for $356 million to Agropur, a Quebec-based dairy co-operative.

The sale includes a total of four plants: two in Edmonton and one each in Winnipeg and Burnaby, B.C.

Together the manufacturing operations employ 281 people, process more than 160 million litres of milk per year and generate about $400 million in annual revenue.

Agropur will license the Lucerne trademark from Sobeys and supply Sobeys, Safeway Inc. and IGA stores in Western Canada through long-term supply arrangements.


The co-op’s brands include Natrel, Quebon, Agropur, Sealtest and Island Farms, and its 6,500 employees process more than 3.4 billion litres of milk per year at 32 plants across North America.

Sobeys is the national grocery division and main subsidiary of Empire Co., which acquired the western dairy manufacturing operations as part of its purchase of Canada Safeway last year.


Stories continue below

Print this page

Related Stories