“Re-shaping towards a clear consumer-focused approach”: DMK acquires Alete and German Baby Food brands

01 Apr 2019 --- Taking the next step in its realignment process, Germany’s largest dairy cooperative, DMK Deutsches Milchkontor GmbH (DMK Group) has acquired the brands, as well as sales and distribution channels, of both Alete GmbH and German Baby Food GmbH. According to DMK all the necessary steps for the acquisition, including the antitrust review, have been completed. Oliver Bartelt, Head of Corporate Communications at DMK tells FoodIngredientsFirst that the steps are in line with the company’s strategy towards a clear “consumer-focused approach.”

As part of the realignment, DMK which includes brands such as Humana, Milram and Uniekaas, will focus on value creation and thus take a very market and consumer-oriented approach. The baby food market is significant for the dairy cooperative, with DMK currently investing approximately €145 million in a complete renovation of a site in Strückhausen (Lower Saxony), Germany, to create a new base for its premium baby food brand Humana.

To strengthen its growth strategy for this market, DMK is now opening up additional segments with this acquisition. 

“As a cooperative with more than 6,000 dairy farmers, we are delivering the full range of business, ‘from grass to glass,’ being able to deliver age-specific products to consumers,” Bartelt says.

Premium baby food brands Humana and Alete“In addition to our baby food brand Humana, we are from now on able to support parents from the youngest to younger kids. That will make our range of products on the shelves bigger and better,” he explains.

On the innovation side, Bartelt says DMK is working with Alete. “The brand will make a profit out of DMK‘s understanding and insights of consumers needs,” he adds. 

“We expect there to be more profitable growth for the baby food market in the coming years. With the acquisition of Alete and Milasan, we are making a practical addition to our product range while also significantly expanding our sales and distribution radius,” says Stefan Eckert, Chief Operating Officer for DMK Baby.

The range of food in jars and juices will continue to be produced at the Weiding site in Bavaria. The production element is not part of the acquisition and remains the property of the owner. Around 25 employees working in sales and administration at the Bad Homburg site will move to the DMK.

“Alete enjoys a high level of consumer confidence, especially in the traditional complementary baby food sector, which is a dynamic and attractive sector with sustained growth rates,” Eckert adds.

“Together with our baby milk brand Humana, we will be able to offer parents two brands with an age-specific range in future,” he concludes.