Ornua’s German Growth Continues with €10m Expansion
November 09, 2016
Increased demand in key German market driving investment
Ornua, Ireland’s largest exporter of Irish dairy products, is further expanding its German business, with the commencement of a €10 million extension of its production facility in Neukirchen-Vluyn, Dusseldorf. This is the third expansion of the facility, bringing the total investment in Neukirchen-Vluyn to €50 million, as Ornua Deutschland GMBH invests to meet growing demand for Kerrygold products in Germany (and beyond). The investment will expand production and storage facilities, in addition to developing enhanced office space. The development will take approximately 12 months to complete.
The expansion of the Neukirchen-Vluyn facility is the latest investment, by Ornua, in opening new routes to market for Irish dairy products. In the last two years, Ornua has grown manufacturing capacity in China, Germany, Nigeria, Saudi Arabia, the US and the UK. Most recently, Ornua opened Kerrygold Park, in Mitchelstown, Co. Cork, the new global home for Kerrygold. Today, Kerrygold sales retail at c€750 million, with targets to grow to €1 billion. Germany is a core market for Kerrygold.
Since Kerrygold was launched in Germany in 1973, the brand has grown steadily. Given the success of Kerrygold’s iconic advertising and branding, for many Germans, Kerrygold is synonymous with Ireland.
Today Kerrygold is the number one butter brand in Germany, selling 100's of million packets each year and is the brand leader for butter, spreads and cheese. Ornua recently launched Kerrygold yogurts in the German market. The new category venture will benefit from strong brand awareness and a loyal customer base in Germany, where 20 million households form a solid consumer base. The range includes a variety of fruit yogurts. Kerrygold yogurt’s high fruit content and creamy consistency creates an extra creamy texture and taste. At present, 23,000 German food stores carry Kerrygold products.
Commenting on the investment, Kevin Lane, CEO, Ornua said:
“This year, Kerrygold in Germany will again deliver double-digit growth. Ongoing investment in the brand and our facilities has been critical to the Kerrygold success story. This most recent investment enables us to further expand our business in Germany and throughout this region. We are a premium brand and our customers expect products of consistent high quality. Ensuring that we meet those expectations, every time, is key to growing our business.”
Over the past two years, employment at the Neukirchen-Vluyn site has increased from 120 to 160. The current extension of the site will lead to additional jobs being created. Construction will be finished in September 2017 - in time for the ten year anniversary of the Neukirchen-Vluyn site.