Dr Oetker exits UK chilled desserts category

By Elaine Watson

- Last updated on GMT

Related tags: Dr oetker, Germany

Dr Oetker: Lacks scale in UK chilled desserts
Dr Oetker: Lacks scale in UK chilled desserts
Dr Oetker is selling its Onken yogurt brand to Swiss dairy giant Emmi Group and withdrawing its Dr Oetker-branded mousses and desserts from the UK market on the grounds that it lacks sufficient scale to make headway in the chilled ready-to-eat desserts category.

The Onken products, which are manufactured in Moers in western Germany and distributed primarily in the UK and Germany, will switch over to Emmi on December 31, assuming the deal gets the green light from competition authorities.

The Dr Oetker mousses, Fruit Deli products and Paula-branded kids desserts, which are also manufactured in Moers, will be withdrawn from the UK market by December 31.

Most of the 21 affected staff at Dr Oetker UK’s Leeds office will have the opportunity to transfer to Emmi’s offices in London, while two staff faced redundancy, a spokeswoman told FoodManufacture.co.uk.

“Dr. Oetker UK does not have sufficient critical mass in the chilled ready to eat dessert category to continue operating as a standalone chilled business.”

Non-core

Richard Ilsley md, ambient and chilled, Dr Oetker UK, said Onken had performed well in the UK but was not core to the business, which would now focus on home baking and frozen pizza.

“The UK team has worked hard to develop the Onken yogurt business and 2010 will be a record year for the brand. However ultimately the yogurt category is not core to the Dr Oetker business and the sale of the Onken brand to Emmi will ensure it receives the correct level of support and focus going forwards.

"Dr Oetker UK will continue to focus on the two international strategic assortments of home baking and frozen pizza where we have market-leading positions.”

Following the Onken purchase, Emmi intended to “further strengthen its market position in these key markets”​ said a spokeswoman.

“The Onken brand is to be retained following integration into Emmi’s portfolio, and the products will continue to be manufactured at the Dr. Oetker plant in Moers.”

Related topics: Chilled foods

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