News Pigs
German sausage maker falls into Chinese hands
The German Wolf Gruppe has been sold to the British group Morliny Foods, which is part of the Chinese WH Group. This means the country's fourth-largest sausage maker falls into Chinese hands. The sale is a result of shrinking margins.
The sale is a sensitive issue in Germany, as the company—which is celebrating its centennial this year—is transitioning to one of the largest players in the global meat market, in this case, WH Group, which aims to expand its influence on the European meat market through its British subsidiary.
Wolf, based in Bavaria, is a major producer of premium German meats. The company employs approximately 1.800 people and has a turnover of over €300 million. Morliny Foods has approximately 25 production sites and operates in several European markets: Poland, Romania, Slovakia, Hungary, Spain, France, and the United Kingdom.
Challenging market
The sale of a prominent German sausage maker is the second in a short time. Last month, the Federal Cartel Office approved the acquisition of Germany's second-largest sausage maker, The Family Butchers, by the Premium Food Group, the holding company for meat processor Tönnies.
The sales come as sausage makers face challenging market conditions due to declining sales and rising costs for raw materials, personnel and energy.
Wouter Job
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