The movements of CVC on the map of the Greek dairy industry

By George Lampiris

CVC Capital Partners continues to explore the landscape of the Greek dairy industry, according to market sources, having already acquired Delta, the majority of shares in Dodoni, as well as Gatenio, with activity in the import of dairy products.

In this context, the American fund is investigating new moves, with the prospect of acquisition, in the dairy sector, the value of which in Greece is estimated at 3 billion euros.

Concentration model

The way it moves in this market, gradually adding pieces to the puzzle of the domestic dairy industry, shows nuggets of movements similar to those made by CVC in the case of the private health care sector, through the Hellenic Healthcare Group, to which Iasso belongs. General, Health, Metropolitan, constituting the most powerful group in the field of private hospital care and services in Greece.

CVC’s strategy is to maintain market equilibrium at a competitive level by selecting companies whose activity does not conflict – on the contrary, complements – with that of its existing activities.

It is no coincidence that, apart from Delta, which is currently the largest cow milking company in Greece, CVC has chosen to add Dodoni through the acquisition of a majority stake, which, with its main object of activity imports mainly goat and sheep milk, which in fact complements the map with a company that, in addition to fresh milk, yogurt or yogurt desserts such as Delta, maintains a strong presence in the production and sale of feta . The side of the executives of CVC and the Vivartia group at some point were at the table with MEVGAL, in the context of the discussions for the acquisition of the 43% owned by the Vivartia group, before it was finally sold to the Hatzakou family, which manages it. at the moment the Macedonian dairy industry, but also to Spyros Theodoropoulos, for 25.8 million euros.

Market sources say that among the companies with which the fund was recently at the same table was Koukaki Farm, which is a highly tidy productive company in the dairy sector, but there has been no further development on this issue until now. the moment.

In fact, the same head of Koukaki Farm, Thanassis Koukakis, usually answers meaningfully when asked about the interest of others in his business: “Everyone has the freedom to talk to us.”

The emerging balances

Now looking at the balances as they were formed, we will find that Delta has a strong presence in the Greek market, but limited export activity in relation to Dodoni. The coexistence of these two companies creates complementarity in the export sector in terms of at least the sector of networks and distribution channels of products with development and economic scale.

In terms of fresh pasteurized milk, Delta is the biggest player in cow dung: During 2020 it maintained the largest market share in value, with 24.8%.

On the other hand, Dodoni is the second company in terms of sales share in value of standard soft cheeses, following the Optima of the Panteliadis family, which produces the Epirus feta. Dodoni’s share was shared with Mondelez International, which markets Philadelphia cream cheese, as both maintained a 13% sales value in 2020 in the standard soft cheese category.

Dodoni on the one hand does not participate in Delta’s share in fresh pasteurized cow’s milk, where the second player there is the Greek Dairies (Olympus, Rodopi, Tyra). For its part, Delta also contributes to a limited extent to the category of soft cheeses, especially feta.

Halloumi exported to 55 countries and the common network with feta

In all of the above, if one takes into account the presence of CVC and the halloumi, for the production of which Dodoni has two factories in Cyprus, one can understand the size of the dispersion and the different fields in which it has managed to open its fan. the fund. It is characteristic, after all, that halloumi is exported from Dodoni to about 55 countries, in about which the feta of the dairy industry based in Epirus is directed through common distribution networks.

In fact, in order to be able to understand the importance that plays a role for the turnover of Dodoni’s halloumi, its sales represent a percentage that amounts to about 40% of the total turnover of the company.

CVC Capital Partners recently acquired the milk and cheese import company Gatenio, adding another link in the dairy industry.

In 2020, Gatenio had a turnover of € 60.78 million, up from € 48.52 million in 2019. At the same time, net profit after tax increased to € 3.03 million, from € 2.98 million in 2019. This company does not incur any burden of borrowing.