Irish dairy cooperative Ornua has acquired US cheese ingredients business, Whitehall Specialties Inc (WSI), for an undisclosed sum.
This acquisition is believed to “complement Ornua’s US ingredients division, Ornua Ingredients North America (OINA), and is central to Ornua’s long-term growth strategy in the US cheese ingredients market,” the company affirms.
Outside of the cheese ingredients sector, Ornua is a supplier in the US consumer market with its flagship brand, Kerrygold.
Doubling production capacity
An Ornua spokesperson says the acquisition will significantly expand Ornua’s production footprint and market share of the US cheese ingredients market. “It will effectively double our production capacity in the US,” they share.
“This partnership will complement our existing manufacturing and innovation capabilities enabling our growth plans. In addition to block, dice, shred and cube formats we provide today, we are now able to offer customers slice on slice (SOS) and individually wrapped slices (IWS).”
“The US food ingredients market continues to grow strongly – growing on average by 1 to 2% per annum over recent years, and during this time Ornua through its strategic investments has substantially grown its market share,” the spokesperson notes.
OINA is a provider of customized functional cheese solutions for US food manufacturing and foodservice customers.
This acquisition increases OINA’s current position in the US cheese ingredients market, expanding its production footprint across six facilities in Wisconsin, Minnesota and Pennsylvania.
It will also unlock significant growth capacity and flexibility to support its existing and new customers’ ambitious growth plans, says the cooperative.
Collaborative partnership
OINA is a core part of the Ornua business, delivering strong growth over the last ten years, says Ornua CEO John Jordan.
“By bringing together the two businesses in complementary parts of the ingredients sector, we are creating a powerful partnership that builds a strong foundation for a long-term, sustainable future.”
“We welcome the Whitehall Specialties team and look forward to partnering with them as we look to our next stage of growth. Our combined business is centered around creating and maintaining long-term partnerships with our customers through innovation, technical expertise and a spirit of collaboration.”
Headquartered in Wisconsin, WSI provides innovative functional cheese solutions to its longstanding food manufacturing and foodservice customers.
Kerrygold, Ireland’s €1 billion (US$1,156 billion) food brand, is the second-largest butter brand in the US and sells 10 million packs each week globally.
Last December, Ornua Ingredients Europe unveiled a new range of pizza cheeses within its Spinneyfields brand.
