Royal FrieslandCampina puts Riedel juice business up for sale

Royal FrieslandCampina is courting suitors for Riedel, the manufacturer of fruit juices and fruit drinks in Belgium and the Netherlands.

Dutch-based Riedel makes juices under the Appelsientje and CoolBest brands, as well as DubbelFrisss, Taksi and sports drink brand Extran. It operates in both the chilled and ambient categories and operates its own production and packaging facilities.

Confirming plans to sell its fruit juice business, FrieslandCampina CEO Roelof Joosten explained that the decision was part of FrieslandCampina’s strategy Route2020, in which its longer-term focus lies on its dairy business.

“Since the early 1970s, our fruit juices and fruit drinks manufacturer Riedel has developed itself to become the market leader in ambient and chilled fruit juices and fruit drinks in the Netherlands,” Joosten said. “Its professional and committed employees have been instrumental in achieving that success. FrieslandCampina wants to ensure Riedel is best positioned to anticipate and respond to changing customer requirements and consumers habits. Therefore we believe it is important for Riedel to take the next step in its development.”

As well as fruit juices, Riedel also produces a line of mineral waters and fruit lemonades. Its products are sold throughout Belgium and the Netherlands, and are available in supermarkets as well as vending machines and forecourt locations.

According to FrieslandCampina’s half-year results for the first half of 2016, the company realised growth in the Netherlands in its dairy portfolio – but juice volume was down due to ‘market pressures’.

Its consolidated net sales of fruit juices and fruit drinks for the year 2016 amounted to approximately €125 million.

FoodBev asked FrieslandCampina whether this was higher or lower than previous years, but the company declined to comment.

FrieslandCampina turned over a total of €5.52 billion in the first half of 2016 – down 2.2% – while its full-year revenue for 2015 was 0.7% lower at €11.3 billion. Its group operating profit during the same period was 18% higher at €576 million.

Riedel employs 200 people and the company is currently part of FrieslandCampina’s Consumer Products Europe, Middle East & Africa business division.

All relevant stakeholders, including Riedel’s employees and suppliers, have been informed of the company’s intention to sell.

It is the latest example of businesses consolidating their activities in challenging economic circumstances, after Kirin agreed to sell off its struggling Brazilian beer business to Heineken for €665 million – more than €1.2 billion less than the Japanese company paid for it in 2011.