December 20, 2012

FrieslandCampina and Bongrain to enter into partnership for cheese products

FrieslandCampina and Bongrain will be entering a partnership for the sale of branded cheese products in France's retail market

With effect from January 1, 2013, both parties will enter into a joint venture with limited scope. The joint venture will be responsible for the sale of Royal FrieslandCampina branded cheese products on the French retail market. Royal FrieslandCampina will contribute its expertise in hard and semi-hard cheese production to the partnership. Bongrain will contribute its knowledge of the French branded cheese retail market.

Royal FrieslandCampina NV does not intend to acquire the French Dairy Company, Bongrain SA.

FrieslandCampina Germany also announces investment and optimisation programme.

Over the coming years, FrieslandCampina Germany plans to make major investments in its German plants and their infrastructures as well as in its 'Landliebe' core brand. The facilities in Cologne, Gütersloh and Heilbronn are to be modernised, while production and administration processes are to be optimised with a view to cutting costs. The aim of the investment programme is to strengthen the company's competitiveness in Germany. With these investments, FrieslandCampina is clearly indicating its commitment to the German market and to its German brands.

With the German market for dairy products so intensely competitive, additional measures need to be taken. The number of employees will be reduced with about 230 in total by eliminating jobs in Cologne, Gütersloh and Heilbronn. However, the company will not be closing down any plants.

FrieslandCampina will begin negotiations with the works councils immediately.