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Emmi Expanding in Attractive Niche Markets

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Emmi Expanding in Attractive Niche Markets

Emmi Expanding in Attractive Niche Markets
December 07
12:21 2015

International growth has been one of the three pillars of Emmi’s strategy since 2008. The Swiss dairy group is keen to achieve this growth in attractive niches, one of which is goat’s milk products, which are becoming more and more popular around the world. Another is that of sustainably manufactured foods, such as organic foods. A third niche, and one in which Emmi is already making successful inroads not only in Switzerland but also abroad (in Spain and Chile), is that of lactose-free dairy products.

By acquiring Redwood Hill Farm & Creamery in Sebastopol, California, an established manufacturer of premium products, Emmi has expanded in all three of these areas at a stroke. The Redwood Hill Farm was founded in 1968 by the Bice family. Today, Redwood Hill, with over 70 employees, earns turnover of more than $22 million a year. The parties have agreed not to disclose the purchase price.

Emmi now earns 44% of its turnover abroad; one-third through exports from Switzerland and two-thirds with products from foreign subsidiaries. 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.

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