MEXICO: Emmi invests in importer Mexideli
Emmi is focusing more on emerging markets
Swiss dairy group Emmi has struck a deal to buy 50% of Mexideli 2000 Holding, an importer of cheese and fresh products into Mexico.
Emmi described Mexideli as "Mexico's leading importer of speciality cheeses". The company also imports a range of chilled products including desserts made by Emmi's Italian subsidiary A-27. Mexideli generates annual sales of CHF45m (US$49.9m), Emmi said.
Urs Riedener, Emmi's CEO, said: "Mexideli is a healthy and profitable company that has already been distributing Emmi products successfully for many years. Its leading position strengthens our opportunities in Mexico, a country that imports a lot of its cheese. The Emmi products set to benefit are its Swiss export cheese varieties, Swiss fondue, cheeses manufactured locally abroad and the desserts of the Italian producer A-27."
Emmi said around a quarter of the 400,000 tonnes of cheese consumed in Mexico was imported. The market for imported cheese in the country is growing at a "mid-single digit" rate a year, the company said, with sales of "premium, speciality cheeses ... posting double-digit growth".
The deal, struck for an undisclosed sum, is Emmi's latest acquisition or investment overseas as it looks to build a business that generates 50% of its sales outside Switzerland. At present, 43% of Emmi's revenue comes from overseas markets.
A fortnight ago, Emmi announced it had bought a 25% stake in US-based yoghurt firm Siggi's. The deal, struck for an undisclosed sum, was Emmi's fourth acquisition in the US in five years.
In July, Emmi bolstered its business in Italy with the acquisition of Italian dessert maker Rachelli.
Emmi acquires stake in Mexico’s Mexideli
Lucerne, 3 January 2014 – Emmi is to acquire a 50% stake in Mexideli 2000 Holding SA de CV, which is headquartered in Mexico City. The company is Mexico’s leading importer of speciality cheeses. With this transaction, Emmi is strengthening its presence in Latin America and moving ahead with its programme of international growth.
Emmi’s strategy is to increase, over the medium term, the share of sales attributable to international business to 50%. The share currently stands at around 43%. The aim is to achieve this growth both organically and through acquisitions, with a stronger focus in future on emerging markets outside Europe.
With the 50% stake in Mexideli 2000 Holding SA de CV (Mexideli), Emmi is strengthening its position in an attractive, growing market and increasing the potential for exporting Emmi Group products to Mexico. This gives the company a second strong base in Latin America alongside Chile.
Emmi’s CEO Urs Riedener commented: "Mexideli is a healthy and profitable company that has already been distributing Emmi products successfully for many years. Its leading position strengthens our opportunities in Mexico, a country that imports a lot of its cheese. The Emmi products set to benefit are its Swiss export cheese varieties, Swiss fondue, cheeses manufactured locally abroad and the desserts of the Italian producer A-27."
Number 1 position in Mexico
Mexideli is a very well established company with a state-of-the-art logistics infrastructure spread across six locations in Mexico. It is Mexico’s leading importer of high quality speciality cheeses and also distributes speciality fresh products such as desserts, including those of the Emmi Group company A-27. The company has been operating successfully in the market for some 25 years and will generate sales of CHF 45 million (around USD 50 million) in 2013.
Mexideli has performed extremely well over the past few years, recording double-digit growth. The company offers the imported products to supermarkets with affluent consumers. The second, albeit smaller, pillar of its business is the food service sector, with a Mexideli subsidiary being the market leader in Cancún. Mexideli employs 250 people.
The Mexican cheese market
Around a quarter or some 400,000 tonnes of the cheese consumed in Mexico is imported, meaning that import expertise is vital. The cheese import market is growing at an annual rate in the mid-single digits, while imports of premium speciality cheeses are posting double-digit growth.
The parties have agreed not to disclose the purchase price or any other details of the contract.
Original source: Emmi
With regard to its Swiss operations, Emmi faces rapid growth in the competition from cheaper imports, particularly with regard to its cheese production. The recent opening of the Swiss marketplace to ...
Emmi is the biggest milk producer in Switzerland and one of the most innovative producers of premium dairy in Europe. The company focuses on offering high-quality products to its consumers in Switzerl...
Dairy in Switzerland industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descrip...
An important law in competition regulation came into full force in July 2010, known as the Cassis de Dijon Principle, which simplified the introduction and commercialisation of products manufactured i...
Negotiations between Switzerland and the European Union with regard to an agricultural free trade agreement and the abolishment of milk quotas, which has led to over production and lower prices, are h...
In Switzerland, the sales of ice cream depend strongly on weather conditions, even if the major part of it is consumed at home. The cold winter and rainy spring is predicted to lead to a fall in volum...
Poor performance continues to plague ice cream in 2012, with stronger retail volume decline seen compared to 2012. The relatively mild summer weather led to weak demand. Retail value sales nonetheless...
Oils and fats is already a mature category in Switzerland, and growth in 2012 has come more from higher prices pushed by trends such as health and wellness rather than growth in volume sales. In addit...
- On the move: What's in store from Tesco's new CEO?
- On the money: Steady as she goes at Cloetta
- Focus: Lindt plays safe with Russell Stover buy
- The bitesize interview - The Kids Food Co.
- Interview: Bell hits out at German cartel ruling
- Campbell issues warning on 2014/15 fiscal year
- UPDATE: Premier establishes international unit
- Premier launches Oxo pots range in UK
- Universal Robina to buy biscuit firm Griffin's
- Genius secures listings in French supermarkets