Ehrmann acquires FrieslandCampina’s Russian dairy business to expand Moscow milk production

25 May 2021 --- Ehrmann has inked a deal with FrieslandCampina to acquire FrieslandCampina’s Russian subsidiary Campina LLC. The strategic transaction is expected to accelerate Ehrmann’s position in Russia and allows FrieslandCampina to focus on consumer markets elsewhere. 

Both companies already hold strong positions in different segments of the Russian dairy market. After completion of the transaction, Ehrmann will be the full owner of Campina with its 650 employees, assets and contractual obligations.

Ehrmann will manage the dairy production in Stupino, located in the Moscow region. It will further develop the established brands Fruttis and Nezhny.

“This acquisition reflects Ehrmann’s strategy of growing its market share in Russia with locally produced, strong brands,” says CEO Christian Ehrmann.

“This divestiture is part of FrieslandCampina’s previously announced strategy to review its position in various markets. Under Ehrmann’s umbrella, our Russian consumer dairy business will be able to further develop and realize its full growth potential.”

The strategic transaction is expected to accelerate Ehrmann’s position in Russia and allows FrieslandCampina to focus on consumer markets elsewhere.This agreement is subject to approval of the Federal Antimonopoly Service of the Russian Federation, as well as authorities in Kazakhstan, Uzbekistan and Belarus. Closing of the transaction is expected at the end of June.

FrieslandCampina highlights
Among recent developments at FrieslandCampina, the Dutch dairy specialist unveiled its latest vegan concept for its whipping agents portfolio, Kievit Vana-Monte V98. 

The versatile whipping agent is a new solution for bakers, dessert and ice cream manufacturers, and responds to the growing trend toward vegan and flexitarian solutions and the rising demand for plant-based alternatives.

FrieslandCampina also recently launched a new portfolio designed to help protein bar brands distinguish themselves in an increasingly crowded market. The range includes the new ingredient Excellion Textpro, designed for a softer mouthfeel. 

Earlier this year, the company joined forces with Zeelandia to craft an accessible whey protein-based alternative to premium New York cheesecake. Dubbed The New Cheesecake, it uses local ingredients, offering bakeries and outlets in Europe and Asia the opportunity to create their own unique variations. 

Among packaging highlights, FrieslandCampina switched to fully recycled PET (rPET) bottles for its Fristi, Chocomel, Yazoo and Pöttyös dairy beverages. The multinational dairy cooperative’s previous dairy beverage bottles were made with 20 percent rPET.

By Benjamin Ferrer

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