Campina

FrieslandCampina Russia is one of divisions of the international dairy farmer cooperative FrieslandCampina.

FrieslandCampina is a commercial company, so it is looking for strategic opportunities for profitable growth. The results of the policy of progressive expansion of the international FrieslandCampina network in recent years have shown good growth potential. But the growth of the company is subordinate to the fulfillment of our main mission: we increase the value of quality milk.

History

2021: Ehrmann bought Campina LLC

At the end of May 2021, FrieslandCampina announced the sale of its Russian division Campina LLC to Ehrmann. The financial terms of the transaction, which is planned to be closed at the end of June 2021, are not disclosed.

According to the press service of FrieslandCampina, the terms of the agreement provide that Ehrmann will become the owner of 100% of Campina LLC, including all its assets and contractual obligations. Ehrmann will manage dairy production in Stupino near Moscow and develop the Fruttis and Gentle brands.

Ehrmann acquired Campina LLC

This transaction reflects Ehrmann's strategy to increase its market share in Russia due to popular local brands, "said Ehrmann CEO Christian Ermann.

In turn, the head of the food and beverage sector FrieslandCampina Ruhl van Neerbos noted that "under the auspices of Ehrmann, the Russian dairy business of the company will be able to develop and fully realize its growth potential."

As a result of the sale of Campina LLC, the company will FrieslandCampina leave the Russian market to focus on development in other countries. All 650 Campina LLC employees are scheduled to be transferred to Ehrmann. First, the transaction must be approved by the antimonopoly departments of Russia, Kazakhstan, Uzbekistan and Belarus.

Inna Golfand, a partner at NEO Center, in a conversation with RBC, estimated the Russian business at FrieslandCampina 6.5 billion rubles with the volume of the entire market for yogurt and sour milk products at 229.8 billion rubles. The company's share in this market is estimated at 2.8%, and after the transaction, Ehrmann's total share will reach 8%. This will still not allow the German manufacturer to approach the leaders - Danone (30.2%; brands "Activia," "Rastishka," "Danissimo," "Prostokvashino," etc.) and Pepsi (20.2%; "Miracle," BioMax, "Imunele," "House in the Village"), but will increase the gap from the nearest competitor in the top 5 - Molvest with a market share of 4.2% (brands "Vkusnoteevo," "Fruate," "Tender age"), the publication says.^[1][2]

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