Emmi has increased its stake in Brazilian dairy producer Laticínios Porto Alegre from 40% to 70% in a move to strengthen its presence in Latin America.
Based in the state of Minas Gerais, Laticínios Porto Alegre makes products such as natural cheese, mozzarella requeijão (cream cheese), UHT milk, cream, butter and whey powder.
Switzerland-headquartered Emmi initially acquired a 40% stake in 2017. At the time of that investment, Laticínios Porto Alegre was one of the five largest milk processors in Minas Gerais. It has since grown to become of the top three.
Emmi believes one of the reasons for this positive development is the “excellent work of the local management, which maintains very good relations with milk suppliers and customers”.
With a view to strategically strengthening its international business, Emmi decided to increase its stake to 70%, subject to the approval of the local competition authority. The price of the stake has not been disclosed.
The remaining 30% of the company remains in the hands of brothers José Afonso and João Lúcio Barreto Carneiro. João Lúcio Barreto Carneiro will continue to lead the company as chairman of the board and managing director.
In 2018, Laticínios Porto Alegre achieved net sales of around BRL 630 million ($163.2 million) and employed around 1,250 people.
Emmi said that following a challenging economic situation, including a two-year recession, the situation in Brazil “now looks to be improving”.
In April, Emmi acquired a 66% stake in Austrian milk processor Leeb Biomilch to expand its goat’s and sheep’s milk offer.
Last year, Emmi saw its sales increase by 2.8% to CHF 3.46 billion ($3.47 billion). Growth in the Americas and Europe helped offset a nominal decline in reported sales in Switzerland.
© FoodBev Media Ltd 2019