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September 25, 2020

Aviko acquires potato plant from Unilever under new tie-up

Aviko has acquired a plant in Germany from a FMCG major with which the Dutch potato business has formed a partnership. 

By Dean Best

Dutch potato business Aviko has acquired a plant in Germany from consumer goods giant Unilever through a deal that also includes a strategic partnership.

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Located in Stavenhagen, a municipality in Mecklenburgische Seenplatte district, north-east Germany, the site serves the retail and foodservice channels, as well as supplying food manufacturers, and employs 210 people.

The purchase has been initiated through the Dutch firm’s Aviko Rixona business unit, with no financial terms disclosed. Aviko, which is owned by the Dutch agricultural co-operative Royal Cosun, said the acquisition is expected to be completed before the end of the year, as long as the competition authorities in Germany have no objections.

Aviko said the Stavenhagen plant processes potatoes into branded products such as mash, dumplings, gnocchi and instant snacks, and products for Unilever’s production units, including the brands Knorr and Pfanni. Acquiring the facility will also support Aviko Rixona’s growth in its key ingredients products of potato granules and flakes.

As a group, Aviko manufactures frozen potato products such as fries, mash potato and gratins supplied into retail and foodservice, as well as hash browns and appetisers to the out-of-home segment.

Aviko CEO Chris Deen, who joined the business in January, said: “Total worldwide demand for potato granules and flakes is constantly increasing and is partly driven by strong growth in the demand for salty snacks on all five continents. The additional volume and extra sales will further strengthen our position and support our ambitious growth trajectory.”

Unilever said Aviko Rixona will become a long-term supplier for its potato products and snack pots.

“The aim of the partnership is to create synergies driven by scale and technology and to manufacture the best potato products,” the Anglo-Dutch giant said in a statement. “Unilever is confident that this partnership will drive portfolio development and category innovation…. [and] gives the production site in Stavenhagen real growth perspectives.”

Unilever confirmed the Pfanni brand is only distributed in Germany and Austria and will remain in the company’s hands, along with other lines such as Knorr and Unox produced at the facility.

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Free Report
img

Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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