Emmi Acquires the Onken Yogurt Brand from Dr. Oetker

In Germany, Emmi's second-largest foreign market, the strong market position of Onken will help to achieve more widespread sales of Emmi's Swiss range and optimal use of its sales structure in Germany.

12 Nov 2010 With effect from 1 January 2011, Emmi will acquire the global brand rights for the Onken brand from Dr. Oetker. Onken is primarily sold in the UK and in Germany, two of Emmi's key markets. By acquiring the brand, Emmi will consolidate its market position in both countries, thus improving market access for Swiss exports.

Emmi wants to expand further as one of Europe's leading suppliers of premium dairy products and is focusing on the key markets of Italy, the USA, Benelux, Germany and the UK to achieve this. The acquisition of Dr. Oetker's yogurt business will significantly strengthen Emmi's position in the latter two markets.

Onken specialises in the production of natural and fruit yogurts in 450 and 500 gram pots, which are sold in the UK and in Germany. Emmi will acquire the global rights to the brand. The range includes a broad variety of well-established, high-quality fruit and natural yogurts. Onken has very good brand recognition in both countries, and an extremely loyal consumer base.

Urs Riedener, Emmi CEO, explained, "Onken is the no. 1 in the UK and the no. 3 in Germany for large pots of yogurt. This strong brand will enable us to consolidate our market position in our key markets of the UK and Germany, and lay the foundations for further growth with exported Swiss products."

Onken yogurts are positioned as premium products that stand for real, fresh, natural ingredients and enjoyment. They are manufactured in Moers in North Rhine-Westphalia. The acquisition by Emmi will not change this for the time being. Emmi will continue to have yogurts produced by Dr. Oetker, but will take over sales of all Onken yogurts.

Overall, Onken yogurts generate sales of some CHF 75 million.

Synergies coupled with high growth potential
Emmi holds a strong position in the German retail sector with fresh products such as Caffè Latte, Swiss yogurt, Swiss Müesli, Griesstöpfli and Carameltöpfli. The fresh dairy products sector is being expanded in the UK and is growing very strongly thanks to Caffè Latte in particular. Emmi also sells Swiss cheese specialities in these countries. Onken is ideally suited to Emmi. The brand is the leader in large pots of premium yogurt and is well positioned. As a result of the acquisition of Onken, Emmi will be able to utilise Onken's sales channels and further consolidate its position in the two key markets of the UK and Germany through a broader, balanced product range.

The UK is an attractive market for Emmi. It is characterized by a high degree of affinity for Swissness, with consumers prepared to pay slightly more for a high-quality product. Furthermore, per-capita consumption of dairy products in the UK is relatively low, meaning that this market has the highest growth potential in comparison with the rest of Europe.

In Germany, Emmi's second-largest foreign market, the strong market position of Onken will help to achieve more widespread sales of Emmi's Swiss range and optimal use of its sales structure in Germany.

Urs Riedener: "The acquisition of Onken is a logical and important step for the Emmi Group. The brand opens up new sales channels and growth opportunities to us. This is in line with our strategy to consolidate our strong position in Switzerland, grow in key international markets to achieve critical mass, and improve our competitiveness through rigorous cost management."

The transaction is subject to approval by the Swiss Federal Competition Commission and the German "Bundeskartellamt".