FDBusiness.com

Swiss dairy group Emmi is growing at international level, both organically and through targeted acquisitions. In a further step towards the international growth objective, Emmi’s subsidiary in Chile, Kaiku Corporación Alimentaria, is increasing its stake in Group Surlat from 60% to the target level of 85% to 95%. The headquartered in Santiago, Surlat is well positioned in the dairy industry, holding the number two position in lactose-free products and is the leading producer of UHT milk in Chile.

Emmi’s strategy is to increase the share of sales in the international business from its current level of 44% to around 50% in the medium term. This growth is to be achieved organically and through acquisitions, with growth markets outside of Europe becoming increasingly important.

Urs Riedener, chief executive of Emmi, says: “Increasing its stake in Surlat enables Emmi to strengthen its base in South America. Chile is a market with good growth potential in the dairy industry.”

Chile has been affected by a challenging economic environment during the past two years, which has inhibited Surlat’s growth. However, in recent months, the country has shown signs of recovery. Emmi firmly believes that Surlat will return to growth and that the Chilean market has good potential. The Emmi Operational Excellence programme will make an important contribution to sustainable development.

Kaiku’s significant majority holding ensures a clear ownership structure and will simplify the management of the company. The positive collaboration with Chilean milk producers will be continued, ensuring the long-term availability of milk. The parties have agreed not to disclose the purchase price.