DMK said Sunval’s production facilities, products and sales channels are “a good fit” with its own baby food business unit

DMK said Sunval’s production facilities, products and sales channels are “a good fit” with its own baby food business unit

German dairy giant DMK has said it will look to build its new Sunval baby food business throughout Europe and beyond.

DMK yesterday (14 August) announced it had acquired German baby food manufacturer Sunval from private-equity firm BWK for an undisclosed sum.

A spokesperson for DMK told just-food Sunval's production facilities, products and sales channels are "a good fit" with its own baby food business unit, which includes the Milram and Humana brands.

The spokesperson said DMK has the "fundamental aim" of growing the Sunval brand in European and international markets, but did not give details on which countries it was looking at entering.

"We will analyse the individual target markets and offer retail customers appropriate concepts."

Sunval is currently only manufactured and sold in Germany. It is the largest producer of organic private-label baby food, according to DMK, supplying specialist retailers and a large number of drug store chains. Its sales have grown by 36% per annum on average, reaching EUR37m in the current financial year.

In 2011, DMK's share of sales outside of Germany was 38%, with revenues from non-EU countries accounting for 8% of total sales.

"It is planned to increase sales to non-EU countries to 20% in the medium term," the spokesperson said of its group sales, including Sunval. "For reasons of competition, we cannot tell you what share the individual product groups and subsidiaries will contribute."

The spokesperson added the company sees growth opportunities in both branded and private-label baby food.