Demand for Kerrygold sees Ornua invest €10m in German expansion
Ornua has announced that it is further expanding its German business, with the commencement of a €10m extension of its production facility in Neukirchen-Vluyn, Dusseldorf.
This is the third expansion of the facility by Ornua, Ireland’s largest exporter of Irish dairy products.
This latest investment will bring the total investment in Neukirchen-Vluyn to €50m, as Ornua Deutschland GMBH invests to meet growing demand for Kerrygold products in Germany (and beyond).
The investment will expand production and storage facilities, in addition to developing enhanced office space. The development will take approximately 12 months to complete.
The expansion of the Neukirchen-Vluyn facility is the latest investment, by Ornua, in opening new routes to market for Irish dairy products.
Most recently, Ornua opened Kerrygold Park, in Mitchelstown, Co. Cork, the new global home for Kerrygold.
Today, Kerrygold sales retail at approximately €750m, with targets to grow to €1 billion and Germany is a core market for Kerrygold.
Since Kerrygold was launched in Germany in 1973, the brand has grown steadily. Given the success of Kerrygold’s iconic advertising and branding, for many Germans, Kerrygold is synonymous with Ireland.
Ornua recently launched Kerrygold yogurts in the German market. The new category venture will benefit from strong brand awareness and a loyal customer base in Germany, where 20m households form a solid consumer base.
The range includes a variety of fruit yogurts. Kerrygold yogurt’s high fruit content and creamy consistency creates an extra creamy texture and taste. At present, 23,000 German food stores carry Kerrygold products.
Commenting on the investment, Kevin Lane, CEO, Ornua said that this year, Kerrygold in Germany will again deliver double-digit growth.
Ongoing investment in the brand and our facilities has been critical to the Kerrygold success story.
“This most recent investment enables us to further expand our business in Germany and throughout this region. We are a premium brand and our customers expect products of consistent high quality. Ensuring that we meet those expectations, every time, is key to growing our business.”
Over the past two years, employment at the Neukirchen-Vluyn site has increased from 120 to 160. The current extension of the site will lead to additional jobs being created.
Construction will be finished in September 2017 – in time for the 10-year anniversary of the Neukirchen-Vluyn site.