Trewithen Dairy in Cornwall has been acquired by German giant Ehrmann

Cornish dairy supplier Trewithen has been acquired by German dairy processing leader Ehrmann as part of a major push into the UK.

The deal – the value of which was not disclosed – will see Ehrmann invest £20m to expand Trewithen’s dairy processing capacity and capabilities at its Glynn Valley site in Cornwall. It marks the culmination of a long courtship of Trewithen by Ehrmann, with the most recent negotiations beginning in November last year.

The upgraded facility, due to open in 2026, will enable the site to produce the full range of Ehrmann dessert products, such as the yoghurt, mousse and high protein pudding ranges, plus the Grand Dessert brand, using British milk , eventually accounting for 15% of Ehrmann’s global sales each year.

Ehrmann has also committed to increasing sales of Trewithen’s portfolio of Cornish branded and own-label dairy products as part of the deal, with a renewed push to take what is mainly a regional brand into the UK.

Family-owned Ehrmann was founded in 1920 in Bavaria and has since grown into a business with an annual global turnover of over 1.1 billion euros. It has a presence in 75 countries worldwide and employs more than 3,500 people. It said its guiding principle is to provide dairy products “from the family, for the family”.

New skilled jobs at the Cornish manufacturing facility will also be created in due course as the business grows, Ehrmann said, with the acquisition future-proofing 260 existing roles.

Ehrmann first entered the UK market in 2022 with a range of products sold in Aldi, Morrisons, Iceland and more recently the Co-op.

Buying the Trewithen business and starting local production in Cornwall would accelerate its UK growth plans, chairman Christian Ehrmann said.

“Ehrmann has enjoyed success in the UK over the past two years, working with major supermarket chains to bring new dairy tastes to consumers,” he added.

“The acquisition is very significant as it opens up local UK manufacturing; allowing us to reduce our carbon footprint and guarantee the freshness of our products. By choosing Trewithen’s high quality dairy, we are delighted to bring German product innovation with the best of British dairy.”

As part of the deal, Trewithen’s parent company, Cornish Farm Dairy Ltd, was renamed Ehrmann Cornish Dairy Ltd.

Current Trewithen Dairy CEO Paul Berne will remain at the helm of a combined UK business, while owner Francis Clarke, son of founders Bill and Rachel Clarke, will also remain in a senior role . His parents were taking the opportunity to retire, Berne said.

“We are delighted to be able to expand our offer, create more jobs in the local economy and continue to bring the joy of quality Cornish produce to more taste buds across the UK,” said Berne.

“The new products are already proven in other markets, so it’s great to produce them with great British milk to be enjoyed by more British taste buds.”

The expansion of the production plant will provide dairy farmers in the region with an important and stable buyer for their Cornish milk supply, paying a competitive price for milk based on a guaranteed premium, Trewithen said.

“We are incredibly proud of our roots in quality pasture and cows that produce some of the best milk in the world,” said Francis Clarke. “Quality and sustainable growth are core values ​​that we deeply share with our new colleagues at Ehrmann. That’s why we’ve decided to join forces to breathe fresh air into the Cornish dairy industry as we enter our next phase of expansion.”

Trewithen-based parent Cornish Farm Dairy posted a 44.6% rise in sales to 95.9m in the year to 30 April 2023, according to its latest accounts published by Companies House.

A pre-tax loss of £3.7m in the previous accounting period narrowed to a loss of £1.4m amid strong growth in both branded and own-label sales to new customers and existing.

The deal marks the latest major investment in UK dairy processing this year. Arla has committed to a £300m investment in its manufacturing business, including a big boost in mozzarella production, while Müller acquired Yew Tree Dairy earlier this month.