Israel-based food group G. Willi-Food International has put on ice plans to buy a majority stake in an unnamed Russian dairy distributor, citing volatility in the sector.
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Willi-Food said in October that it would buy a 51% stake in the distributor and then form a venture, NewCo, with the current owners of the company.
The Israel-based firm said it was postponing talks with the company “until global dairy prices stabilize and there is more certainty in the dairy markets”.
While Willi-Food has so far declined to name the Russian dairy firm, it has described the company as a leading cheese distributor in the country and the number one supplier of hard cheeses such as Gouda and Edam.
The venture was slated to import and distribute European and local cheese products, and was also expected to import Willi Food subsidiary’s brands of kosher and healthy living dairy products.
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By GlobalDataThe volatility in global dairy prices is also having an impact on Willi-Food’s plans to launch kosher dairy produces worldwide.
President and COO Zwi Williger said: “We continue to monitor the dairy situation and look forward to launching our brand of premium kosher dairy products globally once raw milk prices stabilise.”
Willi-Food also forecast a 31% jump in full-year sales. The company will publish its results at the end of March.
