Emmi adds stakes in Kaiku and Diprola
Swiss giant Emmi has increased its stakes in Kaiku Corporación Alimentaria in San Sebastián, Spain (from 42.6% to 66%) and Diprola in Avignon, France (to 63%) will further strengthen the group’s international business, according to the company. In the medium term, Emmi’s strategy is to increase the share of international sales to 50% (currently 29.8%). This is to be achieved organically and through acquisitions. By increasing these two stakes, Emmi is taking a further significant step forward in its internationalisation.
The Kaiku deal is set to be completed in August. Its main markets are Spain, Chile and Tunisia. The company leads the Spanish market in the area of lactose-free milk and chilled coffee beverages. In 2011 Kaiku generated sales of €278 million. Thanks to the partnership with Kaiku, sales in Spain of Emmi Caffè Latte increased by more than 70% in the first five months of the current year, a growth rate bigger than in any other market.
Over half of the company’s sales are in fast growing markets outside Spain, notably in South America (in particular Chile, where the company holds a majority stake in Surlat). It is also it has a majority shareholding in Tunisia’s Vitalait, the country’s number two player. In addition, discussions with Ekarpen, the leading Basque Economic Development Corporation, with regard to a participation in Kaiku, are at an advanced stage.
Meanwhile, since January 2008 Emmi and the Italian cheese specialist Ambrosi have been expanding 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 Schöpfer. The company operates in France and Germany. Emmi and Ambrosi decided to fully acquire the French SME, which is headquartered in the city of Avignon, with effect from 1 July 2012. From then on, Emmi will be the majority shareholder with a stake of 63%. The company commands a strong position in the fresh packaging (“frais-emballé”) and distribution of cheeses from Switzerland, Italy and France, and so Diprola’s new owners are also open to a future partnership with a French cheese provider.
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. Freshly packaged goods combine the consumer trends for fresh products and convenience, and also have numerous benefits (e.g. quality assurance) for retailers. 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 exploiting the export potential of Swiss cheese even better in the future. The move will also secure Emmi’s access to the distribution partner of the Italian company A-27 (Bontà Divina) in France, the most important market for the specialist in fresh desserts, which was acquired by Emmi last summer.
