The Onken brand is strongest in the UK, where according to Emmi it is number one in the large pot category, and Germany.
The deal will lead Dr Oetker, which also makes frozen pizza and home baking ingredients, to exit the UK chilled deserts market. It has opened a period of consultation with affected employees.
Richard Ilsley, managing director (ambient and chilled) said: "The UK team has worked hard to develop the Onken yogurt business and 2010 will be a record year for the brand, however ultimately the yogurt category is not core to the Dr Oetker business and the sale of the Onken brand to Emmi will ensure it receives the correct level of support and focus going forwards.
Emmi has operated in the UK for four years and currently offers ready to drink coffees, premium yoghurts distributed in Waitrose and independent retailers, milk drinks and both branded and own-brand cheeses.
However the annual turnover across its product range is currently just £7m.
Its biggest marketing campaign this year has been a £500,000 London region TV push for its Emmi Caffe Latte product.
Urs Riedener, Emmi chief executive, explained, "Onken is the no. 1 in the UK and the no. 3 in Germany for large pots of yogurt. This strong brand will enable us to consolidate our market position in our key markets of the UK and Germany, and lay the foundations for further growth with exported Swiss products."
Emmi sees the UK market as "characterized by a high degree of affinity for Swissness, with consumers prepared to pay slightly more for a high-quality product".
It believes per capita consumption of dairy products in the UK is relatively low and the market has the highest growth potential in comparison with the rest of Europe.
The deal will lead Dr Oetker, which also makes frozen pizza and home baking ingredients, to exit the UK chilled deserts market. It has opened a period of consultation with affected employees.
Richard Ilsley, managing director (ambient and chilled) said: "The UK team has worked hard to develop the Onken yogurt business and 2010 will be a record year for the brand, however ultimately the yogurt category is not core to the Dr Oetker business and the sale of the Onken brand to Emmi will ensure it receives the correct level of support and focus going forwards.
Emmi has operated in the UK for four years and currently offers ready to drink coffees, premium yoghurts distributed in Waitrose and independent retailers, milk drinks and both branded and own-brand cheeses.
However the annual turnover across its product range is currently just £7m.
Its biggest marketing campaign this year has been a £500,000 London region TV push for its Emmi Caffe Latte product.
Urs Riedener, Emmi chief executive, explained, "Onken is the no. 1 in the UK and the no. 3 in Germany for large pots of yogurt. This strong brand will enable us to consolidate our market position in our key markets of the UK and Germany, and lay the foundations for further growth with exported Swiss products."
Emmi sees the UK market as "characterized by a high degree of affinity for Swissness, with consumers prepared to pay slightly more for a high-quality product".
It believes per capita consumption of dairy products in the UK is relatively low and the market has the highest growth potential in comparison with the rest of Europe.
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