PDO focus adds value to Cremonini

Related tags European union

Italian meat processor Cremonini is keen to increase production of typically Italian cured meats that benefit from PDO or PGI status offering greater added value to the company.

One of the key issues raised by the European Union negotiators at the recent World Trade Organisation talks in Cancun was the importance of protecting food products with a specific geographic identity - such as Champagne or Parma ham - from copycat products seeking to benefit from their quality reputation.

Food and drink producers across the EU now have much greater protection for these PDO (Protected Designation of Origin) and PGI (Protected Geographical Indication) products, and many are keen to expand their operations in this high added-value area.

One such producer is Cremonini​, the Italian meat processor and foodservice operator. The company yesterday announced that its Montana Alimentari subsidiary - which specialises in cured meats, premium ready meals and snacks - had acquired a production facility in northern Italy which would enable it to increase production of speck, bresaola, coppa and other typical Italian meat products.

The facility, based in the town of Postalesio, has an annual production capacity of around 2,000 tons and covers 6,000 square metres. When operating at full capacity, turnover from the plant is estimated to be around €25 million a year. Montana paid €2.7 million for the company.

Cremonini is keen to consolidate its position in the cured meats sector, focusing in particular on PDO and PGI products which offer higher margins. Montana is already a major player in this sector, with five production sites specialising in different types of production encompassing a variety of typically Italian products.

In the first half of the year, Montana's sales were up 12.8 per cent to €407.8 million, while operating profits were up 65 per cent at €10.4 million.

This is the first significant acquisition in the prepared meat sector by Cremonini for some time. The group has been focusing more recently on its foodservice business, announcing plans to bid for the rights to supply a number of Italy's motorway service stations in association with the British foodservice operator Compass.

Related topics Meat

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