DENMARK – Orkla Foods Danmark, Orkla’s fully owned subsidiary has agreed to divest its seafood brand Glyngøre to Denmark based producer and exporter of fish, Amanda Seafoods A/S.
The sale aims to reduce portfolio complexity and bring focus on prioritised business categories, according to Orkla.
Glyngøre is a herring and tuna brand consisting of processed seafood for the Danish grocery and food service sector.
“We are glad that a solid company like Amanda Seafoods has chosen to include Glyngøre in its portfolio and will continue to build on this long-established brand to the benefit of Danish consumers,” said Carsten Hänel, CEO of Orkla Foods Danmark.
“This divestment is part of Orkla Foods Denmark’s strategy of concentrating resources on our priority growth areas.”
Established in 1940, with net sales totalling DKK 43 million (US$6.5 million) in 2018, Glyngøre was part of Orkla’s product range including Beauvais, Den Gamle Fabrik, Pastella, Bähncke and Risifrutti.
Amanda Seafoods was founded in 1916 and is now part of the Nordic seafood group Insula.
“We look forward to including the well-established Danish brand Glyngøre in our portfolio,” said Jesper Kold Sørensen, CEO of Amanda Seafoods.
“Glyngøre holds a strong position with Danish consumers, and we see good opportunities for further building the brand through innovation and product development.”
The transaction whose details were not disclosed is expected to take effective on July 1, 2019.
As part of the strategy to focus on categories with greater growth potential, Orkla offloaded its K-Salat brand to Danish company Stryhns A/S.
The company recently acquired British fudge and toffee manufacturer Confection by Design Ltd for an undisclosed sum.
The company said the deal strengthens its position as a leading supplier of inclusions and accessories to the bakery, chocolate and ice cream market
To strengthen its capabilities in the Nordic market, Orkla acquired Swedish manufacturer of margarine and other edible fats, Zeelandia.
The company which also took a majority stake in Greek ingredients firm Kanakis, last month appointed Jaan Ivar Semlitsch as its new CEO, taking over from Peter Ruzicka.