Lion will use 10pc WCB stake to defend its own cheese interests The target ... Coon cheese. Brewing group giant Lion is flexing its considerable muscle in the $500 million-plus takeover battle for Victorian group Warrnambool Cheese & Butter, saying it will use its 10 per cent stake in the small dairy group to protect its own cheese business from being downgraded by any new owner. Lion boss Stuart Irvine, who was in Geelong this morning to launch the nation's biggest brewer's new Little Creatures brewery, said his company's lightning purchase of a 10 per cent stake in takeover target WCB two months ago would deliver it a "seat at the table" and influence over the direction of the outcome. "This means we have a seat at the table to make sure that relations we currently have are looked after during any potential transfer of ownership," Mr Irvine said. Lion has a joint venture with WCB to manufacture its everyday cheese brands such as Coon, and the partnership is vital in ensuring the financial health of Lion's dairy arm. Mr Irvine refused to comment if he had held any discussions with any if WCB's three takeover suitors, Canadian group Saputo, Murray Goulburn or Bega, but said Lion was pleased with its position on the share register. He said his minority stake would help build on the company's relationship. We have a relationship with WCB already and that (stake) is just strengthening that relationship with them in this uncertain period to make sure that the relationship we currently have we can continue to foster. He said Lion had no plans at this stage to buy more shares in WCB. We are just sitting and watching trying to make the best decisions in that space. Mr Irvine said Lion's purchase of the 10 per cent stake in WCB was a clear signal it remained committed to the dairy sector, despite National Foods costing billions of dollars in writedowns to Lion since it bought it. I think this stake that you have seen in WCB is a demonstration of our committment to our future plans. Turning to brewing Mr Irvine said it was the right time to invest $60 million in the new Little Creatures brewery in Geelong. He said Lion "believed in craft beer" and although beer as a category was flat to negative, craft beer which only made up 3.2 per cent of the beer market was growing at 13 per cent per year. Lion had 50 per cent if the craft beer market, helped by its purchase of Little World Beverages last year which owns the nations second biggest craft beer, Little Creatures. More to follow...