June 18, 2019
Emmi increases stake in Laticínios Porto Alegre Indústria e Comércio S.A.
Swiss milk processor Emmi is increasing its stake in Laticínios Porto Alegre Indústria e Comércio S.A. - which is based in Ponte Nova in the state of Minas Gerais, Brazil - from 40 % to 70 %.
Emmi has held a stake in the dairy since July 2017, which continues to develop positively and is now among the top three largest dairies in its primary market of Minas Gerais. The acquisition of the majority of the shares is subject to approval by the local competition authority.
According to Emmi, Laticínios Porto Alegre has strong market positions in the natural cheese, mozzarella and requeijão (cream cheese) segments, as well as in UHT milk, cream and butter. The company is also a leading player in the business with whey powder, which is mainly supplied to the Brazilian food industry.
In 2018, Laticínios Porto Alegre achieved net sales of around BRL630 million (US$162 million) and employed around 1,250 people.
With the acquisition of a majority stake, Emmi is underlining its willingness to invest further in the development and expansion of the company together with its local partners. The remaining 30% of the company remains in the hands of brothers José Afonso and João Lúcio Barreto Carneiro.
João Lúcio Barreto Carneiro and his team are responsible for the successful growth of Laticínios Porto Alegre and will continue to drive the company forward in the future as chairman of the board and managing director.
With this transaction, Emmi is strengthening its presence in Latin America and building bridges beyond its existing engagements in Chile and Mexico.
Brazil is the world's tenth largest retail market and the biggest in Latin America. After a difficult time in economic terms, including a two-year recession, the situation in Brazil now looks to be improving, Emmi said. This view is supported by the stabilisation of the inflation rate and other indicators such as the growing trade surplus or increasing foreign exchange reserves.