The Emmi CEO explains why his products became more expensive in Switzerland
The milk processor Emmi slightly tightened the price screw. He wants to pass on higher costs to the retail trade. Not an easy task: “Price pressure is still brutally high,” said Emmi boss Urs Riedener in an interview with the AWP news agency. “But we are definitely able to push through price increases.”
Nobody could oblige Emmi to sell its products at a loss. “Thanks to our international presence, we also have alternative sales channels.” In addition, Emmi is playing into the hands that milk is currently somewhat scarcer and that there are therefore less cheap milk on the market. However, it is only about very small premiums. For example, Emmi tries to get a cost-covering price for unprofitable products before stopping their production.
Satisfied with the successor of the “Chocolate Law”
Emmi now makes 52 percent more sales abroad than in the Swiss home market. However, around 60 percent of sales are still produced in Switzerland. This should remain the case in the future, as Riedener says: “At first glance, Switzerland is an expensive location. But we have great expertise here. » They also pay more for quality from Switzerland.
Urs Riedener. Image: KEYSTONE
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When exporting caffè latte, export support via the successor solution to the so-called “Schoggigesetz” also helps. The federal government is making Swiss ingredients for exported food cheaper so that they are internationally competitive. Riedener was satisfied with the successor solution: “I think the industry has managed to set up the succession solution for the chocolate law very well.” At Emmi, the contributions would help to produce drinks for all of Europe in Ostermundigen, said the Emmi boss. “But across the group the influence is marginal, there are other companies that source significantly more than we do.”
New market in five years
Emmi is also continuing to expand abroad. 2019 saw strong progress: Emmi bought a blue cheese factory in the USA, the majority in Austria’s goat milk company Leeb in Austria and another dessert specialty company in Italy. Emmi also increased its stake in a large dairy in Brazil and merged its Chilean daughter with a competitor.
In the next five years, Riedener also plans to open up a new market. “We have no pressure at all,” he said. Sometimes it takes years to get the right goal. (Aeg / SDA / AWP)
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