May 18, 2021

Italian dairy group Granalo plans to expand to the US

Gianpiero Calzolari, chairman of Italian dairy group Granalo, said the company is making plans to expand to the United States through mergers and acquisitions after buying its British distributor Granarolo UK as it looks to grow its cheese business, Reuters reported.

The group has boosted its milk production and is seeking new markets outside of Italy.

Granarolo's hard cheese specialties, such as parmigiano reggiano and grana padano which are protected designation of origin, could see the US as an interesting market.

Calzolari said they would like an overseas company that produces local products, while acting as a platform to sell Italian-made specialties.

Calzolari also said they may acquire companies in other European countries or within Italy. Granalo, which has the biggest bank in Italy, has Intesa Sanpaolo among its investors,

The group posted revenues of EUR 1.28 billion (~US$1.56 million; EUR 1 = US$1.22) last year, 3% lower year-on-year because of the COVID-19 pandemic. Foreign market sales accounted for more than one-third of the group's total revenue.

Calzolari said it has acquired the remaining 49% of Granarolo UK to boost sales there to EUR 100 million (~US$122.1 million) by 2024 from last year's EUR 60 million (~US$73.2 million).

10% of all dairy products Italian food producers sold in Britain and 8.8% of Italy's worldwide dairy exports are Granarolo products.

- Reuters