GERMANY – Dr. Oetker and Molkerei Gropper, the Bavarian dairy producer Molkerei Gropper plans to partner to form a 50-50 joint venture to bring together operations that will increase their production capacity.

The venture which was expected to materialise on April 1, will showcase the companies’ interest in escalating sales in their respective markets with more production.

As the Canadian market becomes competitive, the subsidiary of Oetker Group is entering a joint venture to boost market sales for baking goods, baking mixes, dessert powders, ready desserts, muesli products, frozen pizzas, snacks, among others.

While Oetker will offer its chilled products plant in Moers to the new company, Molkerei will provide a capital increase that will be used to develop buildings, infrastructure and new production facilities.

The new company will be involved in developing desserts products and exploring “new possibilities” in quark, yoghurt, dairy and non-dairy beverages, marketed in Germany and internationally.

It will be managed by a joint executive board appointed by the advisory board, mandated to oversee the joint venture.

For Molkerei, a company that produces dairy products, juices and smoothies, the deal contributes to its growth strategy as an enterprise that stands for quality and innovation.

“For us, the new location is a positive response to our sustainable growth.

The joint activities will take the strain off our main plant in Bissingen.

With the Moers plant, we will also be optimizing our supply chain for the north of Germany and neighboring European countries,” said Heinrich Gropper, owner and manager of Molkerei Gropper.

The joint venture will make operations easy at Molkerei’s main production facility at Bissingen while optimising supply chain for the north of Germany and neighbouring European countries.

According to Dr. Martin Reintjes, Head of Sales at Dr. Oetker, the two companies will continue to produce their own products independently as they seek for production efficiency.

Dr. Oetker closed its pizza manufacturing facility in Great Falls due to complex retail food climate in Canada.