UK cheese importer Futura Foods last week sold a major stake in its business to Danish dairy firm Nordex Food. The partnership, Futura says, opens the door to “many new opportunities” for the company overseas. Newly-appointed managing director of Futura, Kenneth Axen, speaks to Michelle Russell about those opportunities and the benefits for both companies of having Nordex on board.
Denmark-based Nordex Food last week purchased a 44% stake in Futura Foods. With Nordex a leading producer and supplier of value-added white cheeses in northern Europe, the combined companies are set to become a force to be reckoned with in the European white cheese market.
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Nordex specialises in the production of white cheeses from three sites in Denmark, Austria and Romania. Futura, on the other hand, supplies to UK supermarkets, with a focus on Greek, Cypriot, Italian, Spanish and Northern European cheeses.
Kenneth Axen, previously export manager for Nordex, has joined Futura as MD. Axen has a decade of experience working in the European retail, foodservice and industrial markets, supplying mainly white cheese. He is bullish about the opportunities the deal will bring.
“Futura has obtained a very good position within both the retail and foodservice industries in the UK, especially with products from Greece like halloumi,” he tells just-food. The investment from Nordex will also allow the company to further develop the Mediterranean and white cheese segment, he said.
Futura Foods holds a 55% share of the feta cheese market in the UK and owns the Yamas! brand of Greek and Cypriot speciality cheeses. However, the company plans to expand its presence by supplying its Italian cheeses to Scandinavia and take advantage of Nordex’s expertise in the Middle East and the US.
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By GlobalDataAt present, Nordex is exporting its cheeses to countries including the US, Australia, New Zealand, and the growing market of South Africa. It’s main markets, however, are the Middle East and the Balkan’s. “That is where the biggest consumption of white cheese is,” he says, and this is where he sees the opportunity for Futura.
“Nordex has 25 years of experience doing business, especially with Turkey households, the Middle East and ethnic markets.”
Axen says another key benefit of the deal will be that Futura becomes a production company for the first time since it was established in 2001.
“For Futura it is of course the chance to have its own production. Nordex and Futura had a cooperation ten to 15 years ago so we knew eachother from the past but we both went our own way. Futura invested its time and effort into products from Greece. Nordex also gained a lot of success, but in Scandinavia mainly, as well as Germany, Holland, Belgium, and so on. We didn’t succeed in the UK, so with this cooperation now we hope that both can benefit from this deal.”
Axen says that while Nordex has its own production, one of the main drivers for the company making the deal would have been the opportunity to introduce its products into the UK market.
Nordex Food is a privately-owned company that has been in operation for over 30 years. Starting out selling white cheeses to the Middle East, the company has since expanded its presence and is now exporting to around 50 countries worldwide.
The one country it has struggled to gain a good foothold in, however, is the UK.
“Nordex are in the UK but it only has a very small [presence]. The biggest reason why it is difficult is that retailers and customer want original feta and halloumi products. Halloumi must be produced in Cyprus and the demand for that has been growing rapidly over the last five years.
“Eventually there will be a limit on milk and farmers in Cyprus. At the moment, the UK has the biggest consumption of halloumi in the world. So when other European countries reach this trend, there will be a gap, prices will increase and supplies will be short. Then we can offer our similar Danish product, which will keep up with demand. That is what we hope.”
In the meantime, however, Nordex will use the acquisition as a way of presenting its other and new types of white cheese to the UK market, Axen says.
“With the combination of Futura, Nordex fits perfectly with our company. We know we can use all the knowledge Futura has to see what can be sold in the UK. Of course, we can’t make an original feta in Denmark, it has to come from Greece but the target should still be about expanding the range of white cheeses.”
Aside from the UK, however, Europe will continue to be a focus for Nordex, and for Futura, going forward.
“Middle Eastern and Arabian consumers, for example, living in Europe, are eating white cheeses. We have been supplying to these countries for the last 25-30 years. There we try to take the best of these cheeses and adapt them to the European market with a little less salt and fat and expand the range.
“Since European consumers have started to travel, food culture has expanded.”
Asked whether the future holds any M&A deals for Futura in its bid to expand internationally or at home, Axen remains coy.
“That I can’t say at the moment. It has been a big step both for Futura and Nordex to do this deal, so first of all we want to ensure the transition goes well. Then we will look at how we can create synergies.”
As for his first task as MD of Futura, Axen says the first stage will be about successfully integrating the two firms.
“The main focus for us is first of all to become a family, to adapt, integrate and understand eachother. With this cooperation we will have an umbrella where we will both be very strong in original products from Greece and Cyprus.
“Together we will add our synergies of products and knowledge from all over the world. But the most important thing is to understand the synergies and to use them in the right way.”
