FrieslandCampina sells Russian dairy business to German dairy giant Ehrmann

RUSSIA – Leading Dutch dairy specialist FrieslandCampina has sold its Russian subsidiary Campina LLC to German dairy giant Ehrmann SE as part of its previously announced strategy to review its position in various markets.

The strategic transaction is expected to allow FrieslandCampina to focus on consumer markets elsewhere while at the same time accelerating Ehrmann’s position in Russia.

After completion of the transaction, Ehrmann will be the full owner of Campina and will manage the dairy production in Stupino, located in the Moscow region.

Ehrmann is expected to further develop the Campina’s established brands such Fruttis yogurt brands and Nezhny.

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Ehrmann SE is one of the largest milk processing companies in Germany and production facilities in Russia and in Brazil, as well as sales offices in Italy, Spain, the Czech Republic, Poland, Finland and China.

The Ehrmann SE Group also includes the companies J.M. Gabler Saliter and the Fleischwerke Zimmermann meat processing plant.

Ehrmann brand products are sold in over 70 countries around the world. Ehrmann SE and its more than 2,400 employees generated a turnover of €810 million in 2019.

“This acquisition reflects Ehrmann’s strategy of growing its market share in Russia with locally produced, strong brands,” says CEO Christian Ehrmann.

The divesture from Russia follows FrieslandCampina’s launch of its latest vegan concept for its whipping agents portfolio, Kievit Vana-Monte V98.

The versatile whipping agent is a new solution for bakers, dessert and ice cream manufacturers, and responds to the growing trend toward vegan and flexitarian solutions and the rising demand for plant-based alternatives.

FrieslandCampina also recently launched a new portfolio designed to help protein bar brands distinguish themselves in an increasingly crowded market. The range includes the new ingredient Excellion Textpro, designed for a softer mouthfeel.

Earlier this year, the company joined forces with Zeelandia to craft an accessible whey protein-based alternative to premium New York cheesecake. Dubbed The New Cheesecake, it uses local ingredients, offering bakeries and outlets in Europe and Asia the opportunity to create their own unique variations.

This agreement is subject to approval of the Federal Antimonopoly Service of the Russian Federation, as well as authorities in Kazakhstan, Uzbekistan and Belarus. Closing of the transaction is expected at the end of June.

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