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Emmi Increases Focus on the Specialty Cheese Business in the US

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Emmi Increases Focus on the Specialty Cheese Business in the US

Emmi Increases Focus on the Specialty Cheese Business in the US
December 03
12:27 2014

Swiss dairy group Emmi is selling its production facility for aseptic dairy products in the US to the Kansas-based KanPak, LLC, a Golden State Foods partnership. As a leader in the development and manufacturing of all aseptic products, KanPak has the ability to grow the production site in Penn Yan at a faster rate, allowing Emmi to dedicate more resources to reinforce its strong US position in the specialty cheese business. The purchase contract has signed on November 28, 2014, and the transaction is set to be completed on December 18, 2014. The parties have agreed not to disclose the purchase price.

In August 2010, Emmi acquired CASP, a contract aseptic and specialty packaging company headquartered in Penn Yan, New York. Emmi then built a state-of-the-art production facility for fresh dairy and aseptic products. The potential of this facility prompted KanPak to enter into discussions with Emmi regarding the purchase of the assets of Emmi Penn Yan.

KanPak is a specialist in the contract manufacturing of aseptic specialty products, meaning that it operates in the core business area of Emmi Penn Yan. By contrast, Emmi has a strong focus on branded dairy consumer goods. In the US, Emmi concentrates in the production of specialty cheeses. Its core business does not include contract manufacturing for third parties. With its focus on contract manufacturing, KanPak will be able to grow the production site of Penn Yan even faster than Emmi, and will therefore prove to be the better owner of this plant. The acquisition of Emmi Penn Yan will allow KanPak to further diversify its US customers, expand production and drive growth.

Emmi Penn Yan generates revenues of US$30 million.

Emmi’s largest international market is the US, where it has recorded solid organic revenue growth for a number of years. Emmi will continue to focus on its specialty cheese activities with Wisconsin based Emmi Roth USA and its award winning cow’s milk cheeses, such as Roth Grand Cru, Buttermilk Blue and Gran Queso as well its cheese imports from Switzerland, such as the Emmi Kaltbach Cave aged cheese line, Emmi cheese fondue and Le Gruyère AOP. Emmi Roth USA operates two production facilities in Platteville and Monroe, Wisconsin and is also the owner of Cypress Grove Chevre, a premium goat’s milk producer based in Arcata, California.

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