The German Unternehmensgruppe Theo Müller (UTM) is closing the Cologne factory that was taken over from FrieslandCampina earlier this year. 'A bitter pill,' says CEO Marcus Armeling.
The dairy factory in Cologne is part of the German fresh dairy branch of FrieslandCampina and was sold to UTM last year. However, the formalization of the takeover took a lot of time, because the German Federal Cartel Office (BKA) conducted an extensive investigation into the takeover due to possible distortions of competition. The outcome of this investigation was a setback for Müller, as it was not allowed to keep the two most important brands - Landliebe and Tuffi. UTM's dominant position in certain segments of the German dairy market would become too great, the BKA feared. Landbliebe was then licensed to Hochwald, Tuffi was purchased by this company from Müller.
As a result, UTM had to take a new look at the remaining activities and concluded that the factory in Cologne with around 220 employees should be closed. This is scheduled to happen at the end of October. The factories in Heilbronn and Schefflenz will continue to operate as normal. A solution is being sought for the employees in Cologne. Some of the people can work at another Müller branch if they wish. The factory in Cologne has been in operation for almost a hundred years.
FrieslandCampina
The transfer of Landliebe and Tuffi to Hochwald does partly release FrieslandCampina from an obligation. With the takeover of the German companies by UTM, it was agreed that FrieslandCampina would continue to supply milk until Müller had arranged supply himself. Now that these brands are moving to Hochwald, this no longer applies.