Carbery Group continues to grow

May 3, 2012 - PRLog -- Carbery’s 2011 performance reflects an underlying strong performance from the Ingredients division whilst contrastingly its Irish based Cheese division had a challenging year principally due to market returns for cheese under-performing relative to other dairy products.  The weak cheese markets had a significant effect on performance as Carbery is a substantial manufacturer of cheese and produces a range of cheeses including mature cheddars and reduced fat cheddars. Its flagship brand, Dubliner continues to grow in export markets, particularly in the US market.
Carbery’s Ingredients business, which includes its flavour business, Synergy, as well as its dairy ingredients business, had a strong year. Synergy continues to grow in existing markets and establish itself in new markets, acquiring two new flavour businesses in the US.

Sensus, which specializes in the extraction of natural aromas from compounds such as tea, coffee and fruits, and serves the food service and beverage markets, was acquired in the last quarter of 2011. This business is located in Hamilton, Ohio and it will enhance the range of taste and aroma ingredients that Synergy brings to its customers.

Sethness Greenleaf, which is based in Chicago close to Synergy’s US headquarters, was also acquired during the latter quarter of 2011. This business specializes in the production of flavours for the beverage sector and has particular expertise in emulsion technology.

“These are two really important acquisitions for our business” stated Carbery CEO, Dan Mac Sweeney, “they add scale to the business and bring us new technologies, products and differentiators” he continued.

Carbery’s dairy ingredients business had a good year and its focus on nutritional opportunities is reaping rewards in the market place. Its long term commitment to innovation and R&D has delivered a strong pipeline of new and innovative products across infant nutrition, sports nutrition and clinical nutrition market sectors.

Its sports nutrition range under the Kinetica brand continues to grow strongly in its target markets of Ireland and the UK.

Like all other dairy businesses, Carbery Group is addressing the opportunities and challenges that will come with the removal of quotas in 2015. It has just completed a milk supplier survey regarding additional milk output post 2015. In short, the survey indicates that West Cork suppliers from Bandon, Barryroe, Drinagh and Lisavaird co-ops intend to increase milk supply by up to 45% between 2015 and 2020. While Carbery has processing capability in place to handle this extra production, over the next few years it will address associated challenges such as working capital requirements and developing markets for this extra output.

As well as preparing to process and market extra product post 2015, Carbery also plans to launch a scheme whereby it will align milk supply to shareholding for milk suppliers. This scheme will address certain key issues, amongst them that of securing milk processing capability for expanding milk suppliers and that of accessing shareholding value.

“We feel that our planning process to prepare for the opportunities post 2015 is well advanced.  We are delighted to see that our suppliers intend to increase supply by up to 45% between 2015 and 2020. We have processing capability in place to facilitate this growth and our share alignment scheme will give our suppliers an increased stake in the future growth of the business” said Mr. MacSweeney.

Dairy markets in 2012 have weakened considerably in the past three months. While dairy consumption continues to be robust, milk supply growth has outstripped demand. Milk supply right across the globe has been very strong due to favourable weather and strong prices.

This disparity between supply and demand has to be corrected in order to balance dairy markets again.  See www.carbery.com .