Tetra Pak CEO Dennis Jönsson has said the consolidation in the dairy sector is putting new demands on the packaging company.
There have been a number of high profile deals in the dairy industry in recent years, including the merger of Campina and Friesland Foods in 2009 and Lactalis’s takeover of Parmalat this year. Last week there was a call from German dairy processor DMK for more M&A in the German dairy industry so it can compete with processors in markets like Denmark and the Netherlands.
Speaking to just-food at the World Dairy Summit in Parma, Italy, Jönsson admitted that Tetra Pak receives “bigger demands” from their customers when they unite to form larger entities with wider scope and enhanced purchasing power.
He said: “This is something that has been going on for the past decade. It creates, in some places, different demands and bigger demands logistically and we just have to adapt. We can’t fight against it and we just have to adjust.”
Jönsson also pointed to PepsiCo’s entry into the dairy sector through its acquisition earlier this year of Russia’s largest processor Wimm-Bill-Dann.
“In the last couple of years we have seen global consolidation, not just regional. We see PepsiCo entering new categories and they have new demands.”
However, Jönsson says consolidation also gives rise to new markets for Tetra Pak. Jönsson added: “We see this as an opportunity as well because they will look at markets differently and see new opportunities for themselves.”