Danish Crown Becomes European Market Leader in Pepperoni Toppings For Pizzas
Danish Crown has acquired the Danish pepperoni giant DK-Foods to become the European market leader in pepperoni toppings for pizzas. DK-Foods will operate as a separate business unit under Danish Crown’s subsidiary Tulip Food Company and will spearhead the group’s global focus on pizza toppings.
Pizza is the favourite choice of fast food in Denmark, and the same is true in many other parts of the world. Pepperoni is an extremely popular pizza topping, and as part of its 4WD strategy, Danish Crown and its subsidiary Tulip Food Company are pursuing an ambition of becoming the preferred supplier to the European pizza industry.
“In acquiring DK-Foods, we are acquiring a focused and unique company which, since its establishment in 2003, has enjoyed impressive growth. At Tulip Food Company, our strategic focus internationally is on four categories: bacon, canned products, snacks and pizza toppings, so we’re looking forward to incorporating a well-run, agile and fast-moving business. The acquisition of DK-Foods represents a giant leap forward when it comes to realising our bold ambitions within a category which is experiencing growth in many markets, and the acquisition will bring us even closer to our pizza customers,” commentss Kasper Lenbroch, chief executive of Tulip Food Company.
Danish Crown has been DK-Foods’ preferred supplier of raw materials for several years. At the beginning of 2016, DK-Foods sold 70% of its shares to Maj Invest Equity, while the executive board, comprising Steffen Ramsgaard and Per Fischer Larsen, retained the remaining 30%. In taking over the company, Danish Crown is acquiring all the shares in DK-Foods, but Per Fischer Larsen and Steffen Ramsgaard will remain on the executive board. They will report to Kasper Lenbroch.
Tulip Food Company produces a wide range of pizza toppings, including pepperoni, at its factory in Svenstrup south of Aalborg. With the acquisition of DK-Foods, Tulip will increase its production capacity significantly, and while the clear focus on foodservice and retail markets remains, the Svenstrup operation will also establish capacity for production of heat-treated products for the Chinese market.
“DK-Foods presents an opportunity to intensify our group’s strategic focus on pizza toppings by becoming the market leader in pepperoni. The pizza market is growing globally, and we see considerable potential in DK-Foods. We’ll be able to process a larger proportion of our own raw materials, thereby boosting our growth and earnings potential for the benefit of our owners – the Danish farmers,” says Jais Valeur, group chief executive of Danish Crown.
CAPTION:
Pictured following the sale of DK-Foods to Danish Crown and Tulip Food Company were (from left): Tulip’s CFO Henrik Weihrauch, the board members Per Fischer Larsen and Steffen Ramsgaard from DK-Foods, Tulip’s CEO Kasper Lenbroch, partner Per Høholt from May Invest Equity and Kasper Orloff, who is the VP Corporate Secretary at Danish Crown.
