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Hochwald sells yogurt brands to Müller
Hochwald Foods is selling its yogurt brands Elinas and Lünebest, along with its Lüneburg factory, to industry peer UTM (Theo Müller). Hochwald is divesting these operations because it holds too small a share of the fiercely contested yogurt market and wants to sharpen its focus on other activities.
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The transaction is subject to approval by the Federal Cartel Office. The purchase price has not been disclosed.
With the sale, Hochwald also limits its operations in Germany, but the implications of the sale of the Lüneburg factory for members and/or suppliers have not been disclosed. Hochwald Foods operates primarily in central Germany, processing milk for its own members and also partly for companies like FrieslandCampina, which, following the sale of its German factories and dairy brands to Theo Müller, no longer has any processing operations of its own in Germany.
Focus on core activities
Hochwald says it now wants to focus on its core product range. The dairy company will remain active in drinking milk, condensed milk, quark, cheese, milk powders, and ingredients. After the sale of its yogurt operations, several other brands will remain, such as Bärenmarke, Tuffi, Hochwald, and international brands like Bonny and other brands.
According to Hochwald CEO Detlev Latrka, the sale of the yogurt business and all its ensuing assets has been carefully considered. "We are convinced that this decision is the right one in the long run. Afterward, we can deploy our resources more effectively and concentrate on our strengths in other dairy market segments."
Continue production
According to the press release, Müller intends to continue production in Lüneburg. Hochwald believes there are certainly opportunities for a brand like Elinas under the Müller umbrella.
Hochwald has approximately 1970 employees and several factories in Germany and the Netherlands. It processes approximately 2,3 billion kilos of milk annually, generating an annual turnover of around €2 billion.
UTM operates in the dairy sector in both continental Europe and the United Kingdom, with brands such as Alois Müller, Landliebe, Almhof, Weihenstephan, Sachsenmilch, Käserei Loose, and Biotiful. In addition to the dairy division, there is a packaging company (Optipack) and Müller Naturfarm, one of the largest fruit processing companies in Germany.
UTM is also active in convenience foods, including fish, salads, sauces, and dressings. It also has a logistics division within the Culina group. UTM employs approximately 33.800 people and generated a turnover of €9,5 billion last year.