Newlat will supply baking mixes to Unilever under the Carte d’or
Italy’s Newlat has entered a co-packing agreement with Unilever after buying a baking products business in France from Dr
Newlat has purchased France-based EM Foods from privately-owned Dr
Oetker in a deal that includes a manufacturing plant in Ludres in the north-east of the country
The Germany-based company originally acquired the facility
Oetker confirmed the German firm will retain the Alsa brand
with production switching to another facility in Strasbourg on the French border with Germany
Newlat said in a statement the transaction price for the EM Foods business and assets amounts to EUR20m (US$21.5m)
including an investment to build a new warehouse
EM Foods is expected to generate revenue of EUR50m in the 2024 fiscal year and EBITDA of EUR5m
A spokesperson for Newlat told Just Food the agreement with Unilever will amount to “50% of the plant’s production capacity” in terms of finished baking and dessert mixes under the FMCG giant’s Carte d’or
The remainder of the manufacturing at the Ludres factory will be centered on Newlat in the form of private label and its own brands of dessert mixes
will also be produced at the site with a “different aesthetic than the original line” directed at retail customers in European countries
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Unilever “chose EM Foods because they know the plant well and trust the service levels and quality of the production assets
as well as the important R&D centre that plays a fundamental role in recipe reformulation and new product launches”
Just Food has approached Unilever for comment on the co-manufacturing agreement
The transaction for EM Foods and the Ludres factory closed on 2 January following a pre-announcement in October
The deal for EM Foods marks Newlat’s entry to the baking mixes category. Other areas of the business include pasta, baby foods, milk, yogurt and cheese. More recently, in 2021, the Italian firm snapped up UK-based Symington’s, a manufacturer of soups, noodles and cooking sauces
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Unilever has announced last Friday it received a binding offer for the purchase of its Alsa baking and dessert business from Dr
The transaction would include the manufacturing unit in Ludres
“In the context of our global strategy to accelerate long term
the baking and desserts category is not part of Unilever’s evolving core portfolio
which has established a strong legacy in the world of desserts since its origins in 1897 in Lorraine
would be able to progress to its full potential,” said Bauke Rouwers
“Alsa is a brand whose know-how and product quality perfectly complement our product range
Our goal is to pursue the brand’s growth and development both in France and internationally
based on its know-how and innovation capabilities,” said Didier Muller
Unilever said in a statement the binding offer is subject to the usual regulatory requirements and consultation processes
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