Emmi Expands Presence in South America
Emmi is increasing its stake in Brazilian dairy company Laticínios Porto from 40% to 70%. Emmi has held a stake in the business since July 2017. The acquisition of the majority of the shares is subject to approval by the local competition authority.
Laticínios Porto Alegre produces the natural cheese, mozzarella and requeijão (cream cheese), UHT milk, cream, butter and whey powder. In 2018, Laticínios Porto Alegre achieved net sales of around BRL630 million (SFr160 million) and employed around 1,250 people.
The deal strengthens Emmi’s presence in Latin America and builds bridges beyond its existing engagements in Chile and Mexico. Brazil is the world’s tenth largest retail market and the biggest in Latin America. After a difficult time in economic terms, including a two-year recession, the situation in Brazil now looks to be improving. This view is supported by the stabilisation of the inflation rate and other indicators such as the growing trade surplus or increasing foreign exchange reserves.
