Hochwald sells yogurt brands to Müller

Hochwald Foods sells the yogurt brands Elinas and Lünebest plus the factory in Lüneburg to industry peer UTM (Theo Müller). Hochwald is divesting these activities because it holds too small a share of the fiercely contested yogurt market and wants to place a sharper focus on other activities. The transaction is subject to approval by the Bundeskartellamt. An acquisition amount has not been disclosed. With the sale, Hochwald is also limiting its operating area in Germany, but what the divestiture of the factory in Lüneburg means for the members and/or suppliers has not been disclosed. Hochwald Foods is particularly active in central Germany. It processes milk from its own members and partly for a company like FrieslandCampina, which after selling the German factories and dairy brands to Theo Müller no longer has its own processing in Germany. Focus on core activities Hochwald claims it now wants to concentrate on the core assortment of the company. The dairy company remains active in liquid milk, condensed milk, quark, cheese, milk powders, and ingredients. After the sale of the yogurt activities, several other brands remain, such as Bärenmarke, Tuffi, Hochwald, and international brands, such as Bonny and other trademarks. According to CEO Detlev Latrka of Hochwald, the sale of the yogurt activities along with everything that goes with it has been carefully considered. We are convinced that this decision is the right one in the long run. After this, we can deploy our resources more effectively and focus on our strengths in other segments of the dairy market. Continuing production According to the press release, it is Müller’s intention to continue production in Lüneburg. Hochwald believes that under the umbrella of Müller there are certainly opportunities for a brand like Elinas. Hochwald has about 1970 employees and various factories in Germany and the Netherlands. It processes around 2.3 billion kilograms of milk annually, with annual revenue of about 2 billion. UTM is active in the dairy sector in both continental Europe and the United Kingdom, with brands such as Alois Müller, Landliebe, Almhof, Weihenstephan, Sachsenmilch, Käserei Loose, and Biotiful. In addition to the dairy division, there is a packaging company (Optipack) and Müller Naturfarm, one of the largest fruit processing companies in Germany. Furthermore, UTM is active in convenience foods, including fish, salads, sauces, and dressings. Finally, with the Culina group, it also has a logistics division. UTM has about 33,800 employees and recorded turnover of €9.5 billion last year.