French group Senoble has created a subsidiary for its retail own-label yogurts and fresh dairy products business.
French co-operative, Agrial, will hold a 50% stake in the subsidiary, named Senagral, as part of a partnership with Senoble.
The activities Senoble will place in Senagral have an annual turnover of around EUR300m (US$405.2m) out of the company’s estimated 2011 turnover of EUR1.15bn.
The price Agrial paid for the 50% stake in the subsidiary has not been disclosed.
Senagral will run four of Senoble’s plants that produce yogurts, fromages blanc, fresh cream and cream desserts. The venture will supply France, the Benelux and Germany.
The company said the partnership with Agrial would allow it to secure milk supplies, with the co-op collecting 500m litres annually. The partnership would also provide scope for Senoble to extend the international presence of its value-added products.
Agrial MD Ludovic Spiers described the venture as “an important industrial and logistics undertaking” and said it would provide an additional outlet for its milk.
Separately, Senoble has formed a subsidiary, Senoble Desserts Premium, for desserts under its namesake brand and for brands under licence.