Irish dairy cooperative, Ornua, has secured its first manufacturing site in China through its acquisition of Shanghai-based Ambrosia Dairy for an undisclosed amount, according to the Irish Times.
Ambrosia produces and supplies sour cream, yogurt, and premium cheeses to high-end retail outlets throughout the Shanghai regional market. Ornua, which owns the Dubliner Cheese and Kerrygold brands, is Ireland’s largest exporter of butter, cheese, and milk powders, with business in 110 markets, giving it an advantageous position from which to benefit from the lifting of EU dairy quotas and dairy trade liberalization. With this acquisition, Ornua gains a strong point of entry into the Chinese market with the addition of these domestically produced products added to its portfolio of Kerrygold products currently being sold in China.
The Ambrosia Dairy deal also brings with it a new product development center that will be utilized to create new cheese products that are tailored specifically to the preferences of Chinese consumers, and will also support Ornua in developing premium dairy products to me sold in dairy deficient markets, according to Ireland’s Sunday Business Post.
“This acquisition is another important milestone in Ornua’s growth as a global supplier of quality dairy products,” said Onrua chief executive Kevin Lane. “We are buying an excellent dairy enterprise which allows us to significantly grow our Chinese business in one step.”
This deal comes only one month after Ornua announced the opening of a new production facility for its Kerrygold products in Lagos, Nigeria through a joint venture with Fareast Mercantile, and is the latest in a string of acquisitions and capital investments made by the group. Over the past eighteen months, Ornua has made significant deals in Africa, Germany, Saudi Arabia, Ireland, the UK and the U.S. as it pursues a plan of global expansion.
The group made an additional announcement, that following the group’s divestment of its majority stake in U.S.-based DPI Specialty Foods in December 2015, it will be paying out a cash bonus of $16.2 million to its Irish member-producers in April and May 2016 in addition to its usual annual bonus, according to Dairy Reporter.