Numico completes European baby food restructuring

- Last updated on GMT

Related tags: Baby food

Royal Numico said yesterday that it has now closed all of the eight
Europe-based baby food maufacturing plants that were targeted for
restructuring.

The Dutch firm has recently closed the Friedrichsdorf plant in Germany and last week closed a plant in Wells, UK.

The firm launched a restructuring plan in July 2003, which is aimed to generate annual cost savings of €35 million in 2006.

It is part of an overall strategy to increase margins through nutrition specialised for infants and hospitals.

Goldman Sachs has forecast strong returns for Numico's new strategy, which eliminates much of the pricing pressure from retailers.

"Given that the clinical nutrition business has no exposure to the mass market retailers and that retailer brand has less than a 5 per cent share in the western European baby food market, we believe Numico is better placed than its peers to deliver growth despite…industry pressures [such as static consumer markets and consumers trading down],"​ commented the analysts earlier this year.

Numico has also been buying up baby food business in Europe to increase its market share. Its first acquisition was Valio's baby food business in May 2004, followed by Italy's Mellin earlier this year.

In May the baby foods division reported its first quarter of double digit growth (11.9 per cent) while clinical nutrition experienced solid sales growth of 12.3 per cent.

Related topics: Suppliers, Maternal & infant health

Related news

Show more

Related products

show more

Actilight® and infant nutrition: new perspectives

Actilight® and infant nutrition: new perspectives

Tereos | 31-Aug-2021 | Technical / White Paper

Addition of prebiotic ingredients to formulas started around 30 years ago and is widely recognized by experts. Actilight® scFOS is safe for use in infant...

Business case: private label iron supplements

Business case: private label iron supplements

PharmaLinea Ltd. | 18-May-2021 | Case Study

A line of clinically supported private label iron supplements by PharmaLinea is selling nearly 500.000 units/year in a market of under 20 million people.

Time to rethink your probiotics for infant use

Time to rethink your probiotics for infant use

Morinaga Milk Industry Co., Ltd. | 17-Sep-2020 | Technical / White Paper

Undoubtedly, probiotics-fortified infant nutrition products have hit the mainstream, and a baby-friendly concept is on the consumer radar. Morinaga's...

HRB probiotics: The gift of life for infant health

HRB probiotics: The gift of life for infant health

Morinaga Milk Industry Co., Ltd. | 29-Jun-2020 | Technical / White Paper

Bifidobacteria are among the first colonizers of human gut, and certain species are recognised as Human-Residential Bifidobacteria (HRB) - the natural...

Related suppliers

Follow us

Products

View more

Webinars