German cereal manufacturer H&J Brüggen and dairy producer Frischli are collaborating to establish a joint venture focused on oat-based food and drink products. This partnership will involve the production of oat-based drinks, concentrates, and other functional oat products, aimed at the German retail market. The plan has been presented to the Bundeskartellamt, Germany’s national federal cartel agency, and once approved, joint operations are expected to commence in early 2025.
The CEOs of both companies expressed enthusiasm about the joint venture. Johannes Bruggen of Brüggen emphasized the strategic importance of sustainable growth and innovation in this collaboration, stating, “The establishment of this joint venture marks a significant step in our corporate strategy”. Dr. Timo Winkelmann of Frischli highlighted the intention to set new standards in the oat drink sector by leveraging their combined strengths and experience.
Brüggen, established in 1868, specializes in producing private-label breakfast cereals, muesli, oat flakes, and snack bars for retailers and manufacturers globally. With two factories in Lübeck, Germany, and additional facilities in Chile, France, and Poland, the company employs around 2,000 people. On the other hand, Frischli, headquartered in Rehburg-Loccum, processes shelf-stable private-label dairy products, including UHT milks, milk powders, creams, desserts, and fresh dairy goods. Operating four dairy factories in Germany, the company has approximately 1,000 employees.
The proposed joint venture aims to capitalize on the growing demand for plant-based milks in Germany, combining Brüggen and Frischli’s expertise in processing milk and oats products. Both companies stress that they will continue to operate independently even after the joint venture is established. This collaboration will not only strengthen their market positions but also provide customers with enhanced value offerings.
