Clover acquires DairyBelle yogurt and UHT assets

Clover Industries Limited and DairyBelle Proprietary Limited have announced on Tuesday, 13 May, that they have concluded agreements whereby Clover will acquire DairyBelle’s yoghurt and UHT milk manufacturing, marketing and distribution businesses for R125 million and R30 million respectively. The transactions are in line with Clover’s stated strategy to expand its portfolio of value-added, branded consumer products. As announced in March 2014, Clover decided to enter the yoghurt and custard markets in 2015. These acquisitions provide Clover with access to the yoghurt market in which DairyBelle already enjoys a meaningful presence and strong brand equity. Commenting on the acquisitions, Johann Vorster, Clover chief executive, said: “The acquisition of the DairyBelle assets provide Clover with an entry into the highly attractive and profitable yoghurt market, which is one of the major opportunities arising from the expiration of the Danone Southern Africa contracts later this year. Combining these assets with our sales and distribution capabilities will also enable us to develop the current DairyBelle brands and provide capacity to launch our own Clover-branded products in this market.” To read more click HERE.