Emmi discontinues its Onken business in Germany
Emmi, the Swiss manufacturer of premium dairy products, will discontinue distribution of the Onken brand in Germany at the end of June 2022. Emmi is taking this step due to the lack of growth prospects in the highly competitive German market for yogurt and quark, as well as due to the inadequate earnings situation exacerbated by persistently rising input costs.
Despite its long-standing tradition and a deeply rooted and regionally loyal customer base, Emmi has decided to discontinue the Onken business in Germany, effective this summer. The move was prompted by two main factors: insufficient prospects in the price-competitive German market for yoghurt and quark, and Emmi's increasing focus on profitable growth segments such as ready-to-drink coffee with Emmi Caffè Latte and speciality cheese with Emmi Kaltbach.
“The decision to withdraw our Onken range from the German market was not an easy one,” said Dr Elisabeth Wagner-Wehrborn, Managing Director of Emmi Deutschland. “However, limited growth potential and inadequate profitability, which has been additionally adversely affected by persistently rising input costs, have compelled us to take this step for economic reasons.”
The high energy intensity of the existing plants and the replacement investments pending as part of contract production likewise contributed to the decision. The Onken business in Germany is of marginal importance overall for the Emmi Group.
This move does not affect Onken’s business in the UK, where the brand is well positioned and is one of the leading suppliers of large-format fruit yogurts. The Emmi Group will continue to hold Onken’s brand rights in both markets.
About Emmi Deutschland
Emmi Deutschland is one of the Emmi Group’s most important foreign markets. As early as 1965, the Swiss company exported yogurts from Emmen to southern Germany. Since 1999 Emmi has operated its own distribution company in Germany. The company's wide product range includes numerous Swiss speciality cheeses, yogurts, milkshakes and desserts, with a focus on Emmi Caffè Latte and cave-aged Kaltbach cheese.
Emmi is the leading manufacturer of high-quality dairy products in Switzerland. Its roots date back to 1907, when it was founded by dairy farmer cooperatives in the Lucerne region. With its focussed strategy, innovative products and brand concepts established beyond Switzerland, such as Emmi Caffè Latte and Kaltbach cheese, Emmi has grown into an internationally active, listed group (EMMN) with a strong local presence in 15 countries.
Emmi’s business model is traditionally based on a careful approach to nature, animals and people. In this way, Emmi creates the best dairy moments, today and for generations to come, while also contributing to value creation in rural regions. The company distributes its quality products in around 60 countries and manufactures these at over 30 of its own production sites in nine countries. With more than 9,000 employees, around 70% of whom work outside Switzerland, the Emmi Group generated sales of CHF 3.9 billion in 2021.