Lakeland Dairies acquires Belgian butterfat business

Move into textured butter an "important step" in Co-op's strategy

Lakeland Dairies has completed the acquisition of Belgian-based butterfat business De Brandt Dairy International NV in a development they expect to "significantly increase" the co-op’s value add capability.

Lakeland Dairies has acquired De Brandt’s customer base as well as other key assets of the De Brandt butterfat business in mainland Europe.

The conclusion of the deal follows detailed negotiations and will further expand Lakeland Dairies’ portfolio of products and geographical reach.

It also allows the co-op to significantly grow its operational capability in the premium 'texturised butter' market. Texturised butter is demanded by the catering and baking sectors as it facilitates the preparation of pastries, improves the expansion of layers during baking and reportedly "enhances taste and quality" in final products.

The De Brandt business also processes conventional butterfats.

Based at Dendermonde, approximately 30km north west of Brussels, De Brandt has operated as a family-owned business for over a century until Lakeland Dairies' acquisition.

Over many decades Lakeland Dairies and De Brandt have maintained direct supply arrangements between the co-op's butter processing facility in Ballyrashane, Co. Derry and De Brandt’s European.

“The acquisition of the De Brandt butterfat business is a real show of strength by Lakeland Dairies and opens up new markets, product categories and opportunities for the co-op to further grow and develop its European business," said Lakeland Dairies Chairperson Niall Matthews. "I acknowledge the hard work and dedication of those involved in concluding this deal and I look forward to seeing the integration of the De Brandt butterfat business into Lakeland Dairies for the benefit of our farmers, our staff, our customers and the broad community of people we serve.”

Group CEO Colin Kelly meanwhile predicted the acquisition of the De Brandt will benefit Lakeland Dairies on a number of fronts.

“Having experienced a decade of volume growth, the next decade is about strategically increasing our added-value capability to ensure that we are in a position to deliver the strongest possible returns to our farm families. This acquisition gives us a firm foothold in new markets in Europe and beyond, enabling us to further grow and develop our world-class product offering for our current long term and future new customers.

“We are an ambitious, innovative and outward-facing co-op that is driven by adding the maximum possible value to each litre of high-quality milk produced by our farmers. Enhancing our presence in the growing market for textured butter is another important step in our strategy and I look forward to seeing the benefits of this development in the years ahead.”