CANADA: Dairy giant Saputo looks to quit Europe

By Dean Best | 25 February 2013

Saputo says Europe has proved "challenging"

Saputo says Europe has proved "challenging"

Canadian dairy group Saputo looks set to quit Europe after deciding to close plants in the UK and Germany.

Saputo said today (25 February) it did not have the "critical mass" for its European operations to be profitable.

It announced the closure of its cheese plant in the German town of Heiden that supplies the country's retailers. Saputo also plans to close a plant in Newcastle Emlyn in Wales that supplies mozzarella to foodservice customers. The closure of the UK site is subject to consultation with staff.

Saputo acquired the facilities in 2006 and 2007 but said it had found its investment in Europe "challenging".

"Today, the Saputo European  business does not have sufficient critical mass to be profitable and the Company does not see short to mid-term opportunities to ensure such profitability," the company said.

Europe accounts for a small proportion of Saputo's business. It does not provide specific financial data for Europe. However, in the year to the end of March 2012, its last full fiscal year, Saputo said its Argentinian and European businesses made revenue of C$507.3m (US$494.5m) - out of turnover of C$6.93bn.

Click here for the full release on the planned closures.

Sectors: Dairy, Private label

Companies: Saputo

View next/previous articles

Currently reading -

CANADA: Dairy giant Saputo looks to quit Europe

There are currently no comments on this article

Be the first to comment on this article

Related research

Saputo Inc. - Strategy and SWOT Report

Saputo Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360° view of the ...

Dairy Products

This report analyzes the worldwide markets for Dairy Products in US$ Million by the following Product Segments: Milk Powder, Butter, Cheese, Ice Cream and Related Products, Yogurt and Related Products, and Cream....

December Monthly Deals Roundup - Consumer Packaged Goods

The report provides a review of the mergers and acquisitions (M&As), capital-raising, partnering deals, and agreements entered into by CPG companies during December 2012....

Related articles

On the money: Dean Foods eyes competitive advantages with efficiency drive

Dean Foods has said its efforts to reduce costs and drive efficiencies, along with new business wins, will enable the US dairy firm to further extend its "competitive advantage".

CANADA: Saputo Q1 earnings up, warns on tough FY

Canadian dairy giant Saputo saw earnings climb in its first quarter but warned of a "challenging" year ahead.

CANADA: Acquisition fuels Saputo FY profits

Canadian dairy giant Saputo has recorded an increase in full-year profits, on the back of revenue boosted by its acquisition of Morningstar Foods.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page