Danone Increases European Organic Focus
Stonyfield Europe has made its first business move with the acquisition of a 37% interest in Glenisk, number one in Ireland for organic fresh dairy products. Founded in 1987 by John Cleary, Glenisk reported sales growth of over 10% in 2005.
20/06/06 Groupe Danone has announced the creation of Stonyfield Europe, a subsidiary producing organic fresh dairy products, in which it holds an 80% equity interest. The remaining 20% is owned by Stonyfield Farm of the US. This new company will be headed by Gary Hirshberg, Chairman and CEO of Stonyfield Farm, and will operate as an independent entity within Groupe Danone's Fresh Dairy Products business line.
Stonyfield Europe has made its first business move with the acquisition of a 37% interest in Glenisk, number one in Ireland for organic fresh dairy products. Founded in 1987 by John Cleary, Glenisk reported sales growth of over 10% in 2005. The Cleary family, which will hold 63% of equity, will continue to manage the business. At RSP Glenisk now has a combined turnover of €7.5 million, an increase of 50% from the previous twelve months. The Bio/Organic sector is very active and is fuelling growth in the overall FDP category. Glenisk are one of the brands that are driving this growth and plan to release more new products that strike a balance between Organics and Probiotics to further fuel growth in the sector.
Franck Riboud, Chairman and CEO of Groupe Danone, comments: “The European market for organic dairy products is growing but it remains a fairly discreet presence. With Stonyfield Europe, we hope to capitalize on the success and unique expertise of Stonyfield Farm to speed up its development.”
Gary Hirshberg, Chairman and CEO of both Stonyfield Farm in the US and Stonyfield Europe, comments “I am particularly proud that our first initiative in Europe has been an investment in Glenisk, a company that is a pacesetter for organic food in Europe. Our aim in this is to help Glenisk beef up capacity and find new sales openings. It is also a first step in the process of Stonyfield Europe's own development.” Glenisk will be launching a range of new probiotic yogurt drinks using Irish Organic Milks and natural flavours this month, including Cappuccino.
