Kerry sells Dawn Dairies to Glanbia

Glanbia, which introduced significant price cuts last year, has now bought Dawn Dairies from rival dairy company the Kerry Group

Glanbia has acquired the liquid milk business, Dawn Dairies, from rival the Kerry Group, in a deal thought to be worth €10 million.

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Brand Central

Irish dairy company Kerry Group has sold its liquid milk business, Dawn Dairies, to rival company Glanbia.

Under the deal, estimated to be worth €10 million, Kerry will maintain ownership of the Dawn Dairies manufacturing plant in Limerick and will continue to provide milk from its own farmers for the brand for at least the next six years.

Responding to the announcement, IFA National Liquid Milk Committee chairman Padraig Mulligan said the sale must herald a badly-needed co-operative approach by dairies on the liquid milk market, in order to secure a greater share of the retail price for farmers.

Mulligan added that with feed and fertiliser costs skyrocketing, it was critical that dairies would row back the retail margins foolishly conceded in the last year, to pay farmers at least 38c/L + VAT annualised. He said this would allow farmers to cover their production costs, and pay themselves a very basic wage.

Glanbia meanwhile has also bolstered its focus on the lucrative sports nutritional business through the acquisition of US nutritional company Bio-engineered Supplements and Nutrition (BSN) for $144 million (€108 million).

Glanbia’s global nutritional business will now represent approximately 22-23% of the group’s overall revenue.

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