Emmi, a Swiss dairy giant, has been known for its caffè latte, cheese, and yogurts in Switzerland. However, the company has been active abroad for many years, with a significant presence in the USA, Brazil, and Chile. Under the strategy introduced by previous CEO Urs Riedener, Emmi now generates almost 60 percent of its group sales abroad.
In recent years, Emmi has shifted its focus to niches rather than mass business. The company aims to excel in specialties and establish a leading market position in these niches. To strengthen its specialty business further, Emmi plans to acquire Mademoiselle Desserts. This French dessert manufacturer produces high-quality patisserie products and supplies them to various outlets in France, England, and the Benelux countries.
The acquisition of Mademoiselle Desserts is a strategically important step for Emmi according to CEO Ricarda Demarmels. The importance of the dessert business within the group will increase significantly after the acquisition. This move will create its own dessert unit managed by the current Mademoiselle Desserts boss and increase the share of desserts in group sales from 9 to 17 percent.
Emmi plans to spend 900 million euros on the acquisition which will be financed with cash and loans. Stock analysts have expressed positive views on the takeover citing that it is complementary to both companies’ businesses and has potential for increased profit margins. While there are conditions such as approval from French competition authorities and employee representatives that still need to be met before completion of transaction takes place; Emmi expects it to be finalized in last quarter of 2024.
This strategic move demonstrates Emmi’s commitment towards expanding its specialty business further establishing itself as a global player in niche markets