Emmi, Switzerland’s leading dairy producer, has faced challenges in 2024, marked by a 20% decline in shares. The company’s significant acquisition of Mademoiselle Desserts for 900 million euros has sparked debate over its strategic direction. While some analysts view this dessert-focused move as a distraction from Emmi’s dairy roots, CEO Ricarda Demarmels argues it aligns with growth in premium niches. Emmi aims to increase its dessert revenue share, contributing to a robust international sales performance despite earlier setbacks.
Emmi’s Market Challenges and Strategic Acquisitions
In the past year, the food industry has faced significant challenges, affecting major players like Nestlé and Emmi, Switzerland’s largest dairy and cheese producer. In 2024, Emmi’s shares saw a decline of approximately 20%, highlighting the pressures on food companies amidst changing investor sentiments.
One pivotal factor contributing to this downturn was Emmi’s announcement in the summer of 2024 regarding its acquisition of Mademoiselle Desserts in France for a staggering 900 million euros. This monumental purchase marks the largest in Emmi’s history and has sparked discussions among analysts and investors alike.
Innovative Dessert Integration and Future Prospects
Mademoiselle Desserts specializes in producing chilled desserts, including cream slices, which are more aligned with bakery items than traditional dairy products. This shift towards dessert manufacturing has raised eyebrows among stock analysts, with some suggesting that it diverts focus from Emmi’s core dairy offerings. Analysts from Bank Vontobel have labeled this move as “an unnecessary distraction,” questioning whether these dessert products align with Emmi’s brand identity rooted in cheese and dairy.
Despite the skepticism, Emmi’s CEO, Ricarda Demarmels, believes that this acquisition is a strategic fit. She points out that premium desserts represent a niche within the dairy sector, strategically positioned alongside yogurt in supermarkets globally. Emmi has been dabbling in specialty desserts for a decade, with offerings like tiramisus in Italy and baked cakes in the USA. Currently, desserts account for about 9% of Emmi’s revenue, and with Mademoiselle Desserts, that figure is projected to rise to 17%, establishing desserts as a vital component of the company’s growth strategy.
Financially, this acquisition aligns with Emmi’s long-term strategy of focusing on premium niche products over mass-market offerings. The integration of Mademoiselle Desserts will elevate the share of premium products in Emmi’s revenue to nearly 40%, with profit contributions expected to surpass 50%, according to analysts.
Demarmels emphasizes the importance of cultural compatibility in acquisitions, noting that Mademoiselle Desserts will operate under a newly formed unit led by its former head, incorporating existing dessert operations from Italy and the USA. She reassures that the leadership within this division shares Emmi’s core values of quality, reliability, and innovation.
Emmi’s decentralized structure allows for significant autonomy among its subsidiaries, fostering local entrepreneurship and responsiveness to market demands. This operational model will extend to the new dessert division, ensuring consistent management practices across all units.
Internationally, Emmi has diversified its revenue streams, with 60% of sales now coming from abroad, while the Swiss market comprises 40%. The company has experienced robust revenue growth, reporting a 2.5% increase in total sales, reaching 4.3 billion francs in fiscal year 2024. Additionally, operating profit margins have surpassed expectations at 7%.
As of 2025, Emmi’s share price has rebounded by 13%, marking a recovery from the previous year’s decline. Analysts from ZKB view Emmi shares favorably for the upcoming year, but the company’s ability to successfully integrate Mademoiselle Desserts will be crucial in determining its future trajectory.