Ebro Puleva ends SDF agreement to take on Danone alone - Company News - Swiss Dairy Food AG sells 16% stake in Yofres to Ebro Puleva - Brief Article

Eurofood, Nov 7, 2002

Spanish dairy firm Ebro Puleva has pulled the plug on its partnership with troubled dairy firm Swiss Diary Foods (SDF), buying back the 16% stake in its joint venture Yofres held by SDF.

Speaking to the Spanish press, Ebro Puleva said, "We have decided to buy the stake in Yofres because we now have the necessary know-how to produce the yoghurts ourselves. It is not because the Swiss group is currently going through a difficult period, or because we have decided to quit the yoghurt sector."

KNOW-HOW

The two firms originally hooked up in 1998, with SDF's yoghurt and dessert know-how helping Ebro Puleva, more known for its milk than yoghurt, take on the dominant yoghurt player, French giant Danone.

Now the Spanish dairy firm, Spain's largest food company, is confident its four years worth of partnership with SDF has given it enough expertise to tackle Danone head to head.

SDF recently called in the receivers as its crippling debts of 547m [euro] began to take their toll.

SALE

Receivers are currently selling off the more profitable parts of SDF's empire, which includes its yoghurt business, and therefore the link to Ebro Puleva.

Sources in Spain suggest that Ebro Puleva had planned to end the joint venture sometime soon, but that the financial collapse of SDF (See Eurofood, 10 October 2002, 8) merely speeded up the process.