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Emmi Strengthens its International Business

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Emmi Strengthens its International Business

Emmi Strengthens its International Business
July 03
13:40 2012

Swiss dairy group Emmi has further strengthened its international business by increasing its stakes in Kaiku Corporacion Alimentaria in northern Spain (from 42.6 % to 66 %) and Diprola in France (to 63 %). In the medium term, Emmi’s strategy is to increase the share of sales generated by its international business from 30% to 50%. This growth is to be achieved organically and through acquisitions. By increasing these two stakes, Emmi is taking a further significant step forward in its internationalisation.

Kaiku’s main markets are Spain, Chile and Tunisia. The company is market leader in northern Spain with regional brands and leads the Spanish market in the area of lactose-free milk and chilled coffee beverages. In 2011 Kaiku generated sales of Eur278 million. Thanks to the partnership with Kaiku, sales in Spain of Emmi Caffe Latte, produced in Ostermundigen (Switzerland), increased by more than 70% in the first five months of the current year, a growth rate bigger than in any other market.

Kaiku’s particular advantage is its broad geographical diversification – over half of the company’s sales are in fast growing markets outside Spain, notably in South America (in particular Chile). It is also successful in Tunisia, where it has a majority shareholding in Vitalait, the country’s second leading player. Emmi’s increased participation in Kaiku will enable it to benefit from rapid and strong growth in these markets.

Since January 2008 Emmi and the Italian cheese specialist Ambrosi. have been expanding the distribution of Swiss and Italian cheeses in France through the jointly owned company Ambrosi Emmi France. In January 2010 the two companies acquired a combined 25% stake in the French cheese packaging specialist Diprola, which operates in the market under the name ETS Schopfer. The company operates in France and Germany.

Emmi and Ambrosi have now decided to fully acquire the French company, which is headquartered in theAvignon. Emmi will be the majority shareholder with a stake of 63%. Diprola commands a strong position in the fresh packaging (frais-emballe) and distribution of cheeses from Switzerland, Italy and France.

Freshly packaged cheese has been a growth segment in Emmi’s key European markets for a number of years, and is also becoming increasingly popular in the Swiss retail trade. The acquisition of Diprola will enable Emmi to increase its access to know-how in this specialised area of cheese packaging, while also allowing it to further strengthen its position in the European cheese market by further exploiting the export potential of Swiss cheese.

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