Numico completes European baby food restructuring

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

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

HRB probiotics in the HMO era

HRB probiotics in the HMO era

Content provided by Morinaga Milk Industry Co., Ltd. | 29-Apr-2024 | White Paper

Discover the science behind human-residential bifidobacteria (HRB) probiotics and their superior benefits for infants.

4 reasons children need MFGM, according to science

4 reasons children need MFGM, according to science

Content provided by Valio | 29-Sep-2023 | White Paper

In this white paper, Dr Anu Turpeinen discusses the ample scientific evidence showing why milk fat globule membrane (MFGM) is essential for children’s...

Introducing a new era in infant nutrition

Introducing a new era in infant nutrition

Content provided by dsm-firmenich | 01-Sep-2023 | Research Study

Omega-3s are critical to infant health and development – but conventional omega-3 ingredients are impacting the planet.

Solutions of Amino Acids-Based Infant Formula

Solutions of Amino Acids-Based Infant Formula

Content provided by INNOBIO Corporation Limited | 22-Jun-2023 | White Paper

Many infants who are born with nutritional defects often need specifically developed infant formulas to maintain their growth and development. Amino acids-based...

Related suppliers

Follow us


View more