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. As a result, the fourth largest sausage maker in the country is in Chinese hands. The sale is a consequence of shrinking margins. The sale is sensitive in Germany, as the company – which is celebrating its 100th anniversary this year – is being taken over by one of the largest players in the global meat market. In this case, WH Group, which wants to increase its influence on 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 staff and has a revenue of over €300 million. Morliny Foods has about 25 production locations and operates in several European markets: Poland, Romania, Slovakia, Hungary, Spain, France, and the United Kingdom. Challenging market The 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 occurring because sausage makers are facing challenging market conditions due to declining sales and rising costs for raw materials, personnel, and energy.