Emmi Strengthens its Position in South America
Swiss dairy group Emmi is acquiring a 40 % stake in Brazil’s Laticínios Porto Alegre Indústria e Comércio. Based in Ponte Nova in the state of Minas Gerais, the Brazilian company is among the five largest dairies in its main market of Minas Gerais in milk collection, with strong positions in the cheese, fresh cheese, UHT milk, butter and whey powder product categories.
In 2016, Laticínios Porto Alegre generated sales of approximately BRL500 million (about SFr150 million) and employed some 1,000 people. Its head office and one production facility are located in Ponte Nova, with another plant in Mutum. With this transaction, Emmi is strengthening its presence in Brazil and moving ahead with its programme of international growth.
Emmi’s strategy is to strengthen its market position in Switzerland and grow internationally. This growth is to be achieved organically and through acquisitions. By acquiring this stake in Brazil, Emmi is strengthening its presence in a country that has been on the company’s watch list for a number of years. Emmi has a longstanding presence in this market as a leading exporter of Cheese Fondue and raw milk cheeses from Switzerland.
The 40 % stake in Laticínios Porto Alegre Indústria e Comércio strengthens Emmi’s position in South America and creates a second strong local foothold alongside Chile. The remaining 60 % holding in the company, which was founded in 1991, will be retained by brothers José Afonso and Joao Lúcio Barreto Carneiro.
Urs Riedener, chief executive of Emmi, comments: “Laticínios Porto Alegre is a healthy company that has also done an excellent job in the recent years of economic difficulty. Its strong position provides Emmi the possibility of complementing its product portfolio with innovative product and marketing concepts, thereby creating additional opportunities in a market with a great deal of potential over the long term.”
The state of Minas Gerais is roughly the size of France and with a population of approximately 20 million is Brazil’s second-largest state after São Paulo.
