Bauer and Heideblume talk tactics

Following the breakdown of merger talks between the German Heideblume dairy and Austria’s N&M, another giant producer in the German-speaking dairy sector, Bauer from south Bavarian Wasserberg am Inn, has stepped in with a bid.

The deal has been already accepted by the Heideblume board and now needs approval from the co-operative’s members.

Bauer and Heideblume have made a name for themselves in Europe by introducing a steady stream of innovative products, especially in the yoghurt and dairy dessert lines. In addition, Bauer runs a successful cheese production line. Pictured is one of its latest products, Diplomat slicing cheese with green pepper.

Both concerns process around 200 m kg milk annually, with family dairy Bauer realising a turnover of around €300 m in 2006. North German Heideblume only managed about half that in the last year – mainly because a large proportion of its output is sold as own label products to the major supermarket chains in the country, earning smaller margins that the well-advertised and directly marketed Bauer products. But Heideblume’s quark and cream cheese products – along with a range of delicatessen dairy products from sister company Elsdorfer Feinkost – offer something that the Bavarians do not produce themselves.

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