Glanbia Ingredients Ireland is in “exclusive” talks with Irish cheese manufacturer Fivemiletown Co-op – which is reportedly under the threat of closure – in a bid to set up a “strategic alliance” between the firms.
According to reports, Fivemiletown had come under financial pressure after losing a major contract 18 months ago.
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Glanbia Ingredients Ireland, in which Irish dairy and sports nutrition group Glanbia owns a 40% stake, said it was entering in discussions “with a view to forming a long-term relationship between the two organisations”.
The alliance is subject to the approval of Fivemiletown shareholders and the Glanbia Ingredients Ireland board. The farmers co-op that owns 40% of Glanbia plc, the Glanbia Co-operative Society, owns 60% of Glanbia Ingredients Ireland after a deal with the plc group in 2012.
Fivemiletown manufactures and markets a range of soft and cheddar cheeses with a number of brands such as Boilie.
The move will see Fivemiletown enter into consultations with its employees regarding the future of its cheese facility and will enter into a long-term milk supply agreement with Glanbia Ingredients Ireland.
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By GlobalDataGlanbia Ingredients Ireland will have an exclusive licence over the retail cheese brands except for Boilie which will remain with Fivemiletown. The Irish food giant will also perform milk collection and testing on behalf of Fivemiletown as well as providing an advisory service to its suppliers.
“Both parties see considerable value in establishing a long term, mutually beneficial alliance,” Glanbia Ingredients Ireland added.
No one at Fivemiletown was immediately available to comment when approached by just-food.
