SHARE
COPY LINK

FARMING

Müller and Pepsi unite to bring Yanks yoghurt

The Theo Müller company, Germany’s biggest dairy, has announced it was joining forces with American beverage giant Pepsi to sell yoghurt products in the United States.

Müller and Pepsi unite to bring Yanks yoghurt
Photo: DPA

Müller, which makes the popular Müller Milch milk drinks and Weihenstephan yoghurt, will invest an estimated €150 million with PepsiCo to develop and market milky treats for US consumers. No date has yet been set for when the joint venture’s products will hit supermarket shelves.

The project is the next step in Müller’s plan for global expansion, which up until now have not had a presence in America.

“We already have a strong positions in Britain and Germany and now the focus is on the USA,” said Müller CEO Heiner Kamps to the food magazine Lebensmittel Zeitung.

Americans’ lower per capita consumption of yoghurt made the United States the perfect target for expansion, strategists at Müller decided.

The German firm recently purchased the large British dairy Robert Wiseman, building its on the presence of its UK subsidiary – Müller Dairy UK – which was established in 1987.

The Theo Müller company is the biggest private dairy in Germany, with 16,000 staff and an average yearly profit of €3.5 billion.

The Local/DPA/jcw

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ECONOMY

German consumer prices set to rise steeply amid war in Ukraine

Russia's war in Ukraine is slowing down the economy and accelerating inflation in Germany, the Ifo Institute has claimed.

German consumer prices set to rise steeply amid war in Ukraine

According to the Munich-based economics institute, inflation is expected to rise from 5.1 to 6.1 percent in March. This would be the steepest rise in consumer prices since 1982.

Over the past few months, consumers in Germany have already had to battle with huge hikes in energy costs, fuel prices and increases in the price of other everyday commodities.

READ ALSO:

With Russia and Ukraine representing major suppliers of wheat and grain, further price rises in the food market are also expected, putting an additional strain on tight incomes. 

At the same time, the ongoing conflict is set to put a dampener on the country’s annual growth forecasts. 

“We only expect growth of between 2.2 and 3.1 percent this year,” Ifo’s head of economic research Timo Wollmershäuser said on Wednesday. 

Due to the increase in the cost of living, consumers in Germany could lose around €6 billion in purchasing power by the end of March alone.

With public life in Germany returning to normal and manufacturers’ order books filling up, a significant rebound in the economy was expected this year. 

But the war “is dampening the economy through significantly higher commodity prices, sanctions, increasing supply bottlenecks for raw materials and intermediate products as well as increased economic uncertainty”, Wollmershäuser said.

Because of the current uncertainly, the Ifo Institute calculated two separate forecasts for the upcoming year.

In the optimistic scenario, the price of oil falls gradually from the current €101 per barrel to €82 by the end of the year, and the price of natural gas falls in parallel.

In the pessimistic scenario, the oil price rises to €140 per barrel by May and only then falls to €122 by the end of the year.

Energy costs have a particularly strong impact on private consumer spending.

They could rise between 3.7 and 5 percent, depending on the developments in Ukraine, sanctions on Russia and the German government’s ability to source its energy. 

On Wednesday, German media reported that the government was in the process of thrashing out an additional set of measures designed to support consumers with their rising energy costs.

The hotly debated measures are expected to be finalised on Wednesday evening and could include increased subsidies, a mobility allowance, a fuel rebate and a child bonus for families. 

READ ALSO: KEY POINTS: Germany’s proposals for future energy price relief

In one piece of positive news, the number of unemployed people in Germany should fall to below 2.3 million, according to the Ifo Institute.

However, short-time work, known as Kurzarbeit in German, is likely to increase significantly in the pessimistic scenario.

SHOW COMMENTS