German food manufacturer Dr. Oetker has announced plans to establish a joint production venture with Bavarian dairy company Gropper.
The 50-50 partnership will make use of an existing Dr. Oetker plant in Moers, while Gropper will invest the equivalent capital in buildings, infrastructure and new production facilities.
An advisory board will also be established to manage the joint venture, made up of an equal number of representatives from each company.
The two companies say that the deal will allow them to 'considerably' increase their relative market positions, and optimise logistics operations for northern Germany and neighbouring European countries.
"In the new partnership, the two companies, which have different market positions, will continue to produce independently," said Martin Reintjes, sales director at Dr. Oetker.
"The joint production under the roof of the state-of-the-art plant in Moers will enable the partners to exploit production efficiencies that both sides are striving for in the future."
The focus of the Moers facility will be the production of desserts, as well as the development of new dairy products, including quark, yoghurt, milk and non-dairy alternatives.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.