Schwälbchen reorganises

The cooperation in UHT milk and yogurt filling and transport between German Schwälbchen dairy and the multinational Arla-MUH partnership continued after MUH and Arla joined forces towards the end of last year. This deal is supporting Schwälbchen during its 2012/13 reorganisation action to increase business efficiency. Streamlining efforts so far reduced turnover in 2012 by 3.7% to €109.5 million, Schwälbchen management reports.

Capacity adjustments have reduced the amount of milk processed by 17.6% to 147.6 million kg. The dairy’s catering and industry supply sector continued to perform well, and has boosted total income for the group by 3.4% to just over €204 million. However, the company says that a lot more emphasis is needed for its added-value product line, including best-sellers such as the dairy’s Caffreddo coffee dairy drink.

Caffreddo sales income increased by 11% between 2010 and 2011 but the 2012 report indicates that sales now reflect the general downturn in milk throughput at the dairy. Coffee dairy drinks from all dairies in Europe have averaged an annual turnover increase of around 10% for years now, according to Nielsen market research, with 2011 earnings from this drink type being 95% higher than in 2005.