German sausage maker falls into Chinese hands

The German Wolf Gruppe has been sold to the British group Morliny Foods, which is part of the Chinese WH Group. This means that the fourth largest sausage maker in the country is now in Chinese hands. The sale is a result of shrinking margins. The sale is sensitive in Germany because the company – which is celebrating its 100th anniversary this year – is moving to one of the largest players in the global meat market. In this case, WH Group, which wants to increase its influence in the European meat market through its British subsidiary. Wolf, based in Bavaria, is a large producer of German premium meat products. The company employs about 1,800 people and has a revenue of over €300 million. Morliny Foods has around 25 production sites and operates in several European markets: Poland, Romania, Slovakia, Hungary, Spain, France, and the United Kingdom. Challenging marketThe sale of a prominent German sausage maker is the second in a short time. Last month, the Bundeskartellamt gave the green light for the acquisition of Germany's second largest sausage maker, The Family Butchers, by the Premium Food Group, the holding company above meat processor Tönnies. The sales are due to sausage makers facing challenging market conditions as a result of shrinking sales and rising costs for raw materials, labor, and energy.