It has acquired baby food brand Alete and contract manufacturer German Babyfood, which operates a factory in Bavaria and owns the Milasan brand of baby food products.
The acquisition includes the brands as well as sales and distribution channels of Alete and German Babyfood.
Under the terms of the agreement, the acquisition does not involve Alete’s production – its range of food in jars and juices will continue to be produced at the Weiding site in Bavaria – but around 25 employees working in sales and administration at Alete’s Bad Homburg site will move to the DMK Group.
Bouncing back from its annus horriblus
In 2017 DMK announced restructuring was needed after a "dramatic turn" in the dairy market the year before forced it to close three of its plants. It said that as a result of the global dairy market crisis and many farmers giving up dairy farming would mean the loss of around 1.7 billion kilos of milk over the next two years. At the time, CEO Ingo Muller said a "sweeping structural program" would future-proof the company.
Baby food is ‘a highly dynamic and attractive sector with sustained growth rates’
Part of the company's realignment is a focus on baby food, which it calls a "very important’"sector. DMK Group owns brands such as Humana, Milram, Uniekaas. It is investing around €145 million in a complete renovation of a site in Strückhausen in Lower Saxony to create a new base for the premium baby food brand Humana, which will be able to process up to 40 million kilos of GM-free milk per year once the site is fully operational.
DKK said that the fresh acquisitions of Alete and German Babyfood would open up additional segments and allow it to strengthen its growth strategy for the baby food market.
Stefan Eckert, COO of DMK Baby, said: “We expect there to be more profitable growth for the baby food market in the coming years. With the acquisition of Alete and Milasan, we are making a sensible addition to our product range whilst also significantly expanding our sales and distribution radius.”
He added: "Alete is a well-regarded and traditional baby food brand in Germany. It enjoys a high level of consumer confidence, especially in the traditional complementary baby food sector, which is a highly dynamic and attractive sector with sustained growth rates. Together with our baby milk brand Humana, we will be able to offer parents two brands with an age-specific range in future.”