Ehrmann will strengthen its position in Russia and the CIS after the purchase of Campina
2021-05-26 01:28

Ehrmann will strengthen its position in Russia and the CIS after the purchase of Campina

The Russian Dairy Union commented on reports of Campina leaving the Russian market and Ehrmann's 100% stake acquisition. This will allow Ehrmann to strengthen its positions both in Russia and CIS countries.

On Monday it became known that Campina, known for the production of Fruttis and Nezhny yogurts, after almost 30 years of work in Russia, decided to leave the market. Now the Russian division of FrieslandCampina will be taken over by Ehrmann. Later Artem Belov, the General Director of Soyuzmoloko, said to the Made in Russia project that this will give an opportunity to strengthen the Ehrmann's position while reducing costs and increasing efficiency in the expansion of the domestic market.

As the Dairy Union reminded, the pandemic has slowed down the development of some sectors of the economy, but has "given a powerful acceleration to others."

"There is good news in the dairy industry. Recently an agreement has been signed between Ehrmann, a member of the Dairy Union of Russia since 2001, and another member, Campina, to acquire 100% of Ehrmann's share. This decision will significantly strengthen Ehrmann's position in Russia and CIS countries," Ehrmann said, adding that now the company will have to obtain the approval of the antimonopoly authorities of Russia, Kazakhstan, Uzbekistan and Belarus.

The deal is expected to be closed by the end of June, after which the integration process will begin. The merged company will be headed by the current head of Ehrmann, James Christopher Dwyer.

The Dairy Union described him as "a locomotive, a successful entrepreneur and a creative top manager", whose "erudition, communication skills and vision" will allow the two brands to not only hold their own consumer audience, but also to attract new customers.

Lyudmila Manitskaya, the Union's chairwoman, said she was confident that the two companies under the Ehrmann brand would "set a new direction for the dairy industry.

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Author: Ksenia Gustova