GERMANY: Emmi takes Gläserne Molkerei stake

By Katy Askew | 17 October 2012

Swiss dairy giant Emmi has taken a 24% stake in German organic dairy Gläserne Molkerei through its wholly-owned subsidiary Molkerei Biedermann. 

Emmi said the tie-up between Gläserne Molkerei and its own organic business would allow it to "consolidate" its position in Germany, becoming involved in the "growing market" for organic products. 

Gläserne Molkerei is an organic milk processor in Northeast Germany. The group manufacturers a premium range of milk, cheese, yoghurt and other dairy products.

"The strong sense of quality and premium products are an excellent match for Emmi. We look forward to being able to consolidate our position in the dynamic international organic market on the basis of this partnership," Urs Riedener, CEO of Emmi, said.

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Emmi acquires a stake in German organic dairy Gläserne Molkerei 

The Biedermann dairy, an Emmi subsidiary specialising in organic products, is entering into a strategic partnership with German organic dairy Gläserne Molkerei, based in Münchehofe (Brandenburg) and Dechow (Mecklenburg-Vorpommern), by acquiring a 24% stake in the company. Gläserne Molkerei is a leading organic milk processor in Northeast Germany, with a premium range of milk, cheese, yogurt and other dairy products. This partnership will significantly increase Emmi’s expertise in the area of organic products.

Emmi is the largest processor of organic milk in Switzerland. Its subsidiary, Molkerei Biedermann in Bischofszell, Thurgau, has been a pioneer in the manufacture of organic dairy products and exports products to the German specialist organic retail trade. Molkerei Biedermann acquires a 24% stake in the German organic dairy Gläserne Molkerei. This strategic partnership will enable Emmi to consolidate its position in Germany, a key market, and become more involved in the growing market for organic products, including via exports from Switzerland. Urs Riedener, CEO of Emmi, commented: "Gläserne Molkerei is an exemplary leading company in the manufacture of organic products. The strong sense of quality and premium products are an excellent match for Emmi. We look forward to being able to consolidate our position in the dynamic international organic market on the basis of this partnership." Hubert Böhmann, CEO of Gläserne Molkerei, added: "The collaboration with Emmi will enable Gläserne Molkerei to better tap the European market. Exchanging expertise in the area of cheese production and synergies in various business areas will also contribute to the positive development of the business." High-quality fresh products Gläserne Molkerei, which was founded in 2001, generates sales of more than EUR 80 million at its sites in Münchehofe (Gläserne Molkerei) and Dechow (Gläserne Meierei). The company values premium, trustworthy organic products from the region, as well as a high degree of transparency. Both sites therefore have visitor centres in which consumers can learn about the entire manufacturing cycle, from delivery to the final product. The range of organic products includes milk, butter, milk powder, cream, yogurt, quark and cheese. Gläserne Molkerei sells its products primarily via German specialist organic retailers and selected retail chains. It also supplies processors in the organic foods segment. Two locations - one quality standard The Münchehofe site in Brandenburg primarily produces naturally matured organic cheese and organic milk. In Dechow, Mecklenburg-Vorpommern, production focuses on organic butter, cream and yogurt, in addition to organic milk. The two sites combined process more than 100 million litres of organic milk from over 100 farmers every year. The milk comes largely from Northeast Germany, and in particular Mecklenburg-Vorpommern, Brandenburg, Schleswig-Holstein and Saxony. Every farmer who supplies organic milk to Gläserne Molkerei belongs to one of the following recognised environmental agricultural associations: Demeter, Bioland, Naturland, Biopark, Gäa or Verbund Ökohöfe. Some farmers are also NOP-certified. This means that in addition to the requirements of the agricultural associations and the EC organic regulations, they also meet the even stricter requirements of the US National Organic Program for the production of organic milk. Unlocking synergy and growth potential The organic segment is growing consistently in all of Emmi's key markets. In the German market, the most important product groups (butter, milk, yogurt and cheese) are posting high single-digit or double-digit growth rates. The number of specialist natural food stores is constantly rising, although the concentration in Northeast Germany, which is Gläserne Molkerei's core region, is relatively low, meaning that it has above-average potential. By contrast, Berlin is one of the fastest growing markets in Germany, with more than 40 organic supermarkets. Natural food stores are those with a full range of products, of which at least 95% are organic. Both companies will continue to focus on their core business. Gläserne Molkerei will continue to develop independently in the future. The companies will collaborate closely in areas with scope for synergies, for example logistics or building up international expertise in the growing market for organic products. Gläserne Molkerei will also support Emmi in positioning the Biedermann brand and in the export of organic products from Switzerland to Germany. The transaction is subject to approval by the respective Competition Authorities


Original source: Emmi

Sectors: Dairy

Companies: Emmi

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