Dutch dairy cooperative FrieslandCampina, the company behind Chocomel chocolate milk and Yazoo milkshakes, is set to merge with Belgian peer Milcobel.
The two parties have signed a framework agreement and aim to finalise a detailed merger proposal in the first half of 2025, which will then be discussed with the members of FrieslandCampina and the shareholders of Milcobel.
The merger will require approval from anti-trust authorities.
In a joint announcement today (18 December), the two businesses said “this joining of forces creates a leading dairy cooperative and dairy company”.
They said that based on the companies’ combined 2023 annual figures – excluding Milcobel’s Ysco business, which is in the process of being divested – the new organisation would have a pro-forma revenue of more than €14bn ($14.69bn). It would operate in 30 countries, employ nearly 22,000 staff worldwide and process around ten billion kilograms of milk.
Nearly 11,000 farms owned by approximately 16,000 member farmers in the Netherlands, Belgium, Germany and France would supply the milk.
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By GlobalDataThe two companies said the merger offers opportunities to grow in areas such as cheese, white dairy products (such as milk, buttermilk, and yogurt) and ingredients.
Sybren Attema, chair of FrieslandCampina’s board, said: “The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market. This strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers, now and in the future.”
Just Food has asked the two companies whether the merger is likely to lead to any rationalisation of jobs or facilities.
A FrieslandCampina spokesperson said: “It is too early to give a statement about that.”
Last month, FrieslandCampina, which was linked with a merger with Danish peer Arla Foods two years ago, revealed it was set to cut more than 180 jobs in the Netherlands in a bid to make its domestic production “more efficient, sustainable and future-proof”.
The Dutch dairy cooperative added that it is to close a cheese facility in Born and move production to another 280km further north in Workum.
The company also intends to close one part of its site in the northern city of Leeuwarden, which makes milk products.
In May, Milcobel appointed Peter Grugeon as its new CEO, three months after it “parted ways” with Nils van Dam.
Van Dam left the co-op, which supplies supermarket chains and local retailers, under a cloud in February, with the business citing a difference of opinion with the board of directors over its “vision”.
On the planned merger, Betty Eeckhaut, the chair of the Milcobel board, said: “The cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger. Our goal remains to create added value for our member dairy farmers. Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future.
“For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further professionalisation of our services.”
