Emmi is expanding in the “attractive niches” of goat’s milk products and “sustainable foods” such as organic and lactose-free through the acquisition of US-based dairy Redwood Hill Farm and Creamery.
The California-based business produces goat’s milk under the Redwood Hill Farm and Green Valley Organics brands. The company is also expanding its offering of organic lactose-free cow’s milk products. Emmi stressed the dairy’s focus on sustainable production serves as an important point of difference for its premium products.
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Redwood Hill Farm employs over 70 people and generates a turnover of more than US$22m per annum, Emmi said.
Financial details of the transaction were not disclosed and Emmi did not respond immediately to requests for comment on the transaction. The company said it expects to close the deal by the end of the year.
Present owner and CEO Jennifer Bice, together with the existing management team, will continue to manage Redwood Hill. The company will retain an independent market presence. However, Emmi said it also plans to “make use of specific synergies”.
“Emmi now has a tried and tested network of firms successfully operating in the premium and specialities market in North America. We have shown our ability to do a particularly good job of integrating pioneering family-owned enterprises into the Emmi Group over the long term. Maintaining the culture specific to a firm helps to further reinforce its success on the market”, said Urs Riedener, Emmi’s CEO.
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By GlobalDataEmmi added that, at a time of economic uncertainty, its presence in the US has helped stabilise its performance and offset weakness elsewhere. The company operates subsidiaries in North America, including Emmi Roth, Cypress Grove Chevre, The Icelandic Milk and Skyr Corporation as well as the cheese division of JL Freeman.
Emmi, which now generates 44% of its sales overseas, is expanding in international markets to offset a slowdown in demand in Switzerland. “Continuing growth abroad is part of Emmi’s strategy. The intention is that it should be achieved through both organic growth and further acquisitions. Emmi’s primary interest is in companies in niche markets, primarily in countries in which it already operates,” the company said.
