German milk processor Deutsches Milchkontor (DMK) has announced a deal to acquire baby food producer Alete – part of what it calls a “continued restructuring” that has seen the business protect itself against falling consumption of dairy.
The acquisition, which has already completed, will see DMK inherit Alete’s flagship brand of baby food – as well as the contract manufacturer German Babyfood, which operates a baby food factory in Bavaria and owns the Milasan brand of baby food products.
DMK said that “dairy concern continues to restructure its product range”, suggesting that other non-dairy acquisitions might be in the pipeline. The company’s baby food business is strategically important to DMK; it already has brands including Humana and Milram, and in February opened a high-tech baby food facility in Strückhausen, northern Germany for its Humana brand following investment of approximately €145 million.
With its latest acquisition, DMK is “opening up additional segments” as part of its baby food strategy, the company said.
Stefan Eckert, COO of DMK’s baby food business, explained: “We expect there to be more profitable growth for the baby food market in the coming years. With the acquisition of Alete and Milasan, we are making a sensible addition to our product range whilst also significantly expanding our sales and distribution radius.
“Alete is a well-regarded and traditional baby food brand in Germany. It enjoys a high level of consumer confidence, especially in the traditional complementary baby food sector, which is a highly dynamic and attractive sector with sustained growth rates. Together with our baby milk brand Humana, we will be able to offer parents two brands with an age-specific range in future.”
DMK is not acquiring the “production element”, but said that the range of baby food made by Alete and Milasan would continue to be produced at an existing plant in Bavaria. Around 25 employees working in sales and administration at a site in Bad Homburg will move forward under the DMK Group.
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