Swiss retailer Migros's subsidiary, M-Industry, which produces over 20,000 food and non-food products and is one of the largest own-brand producers in the world, announced that its turnover grew by CHF 134 million (+2.1%) to CHF 6.4 billion (€6 billion).
M-Industry owns 23 Swiss companies and seven companies abroad. Its international sales (including exports) jumped 16%, an increase of CHF 109 million. Best-selling products included coffee capsules and cheese. The Café Royal brand expanded its market share in places like France and Germany.
Foreign growth was aided by the acquisitions of Procter & Gamble's Ondal Sarl French production site and sauce and spice company Idhéa.
Swiss Market
Although the domestic Swiss market remained challenging, revenue grew by CHF 25 million, or 0.5%. Acquisitions included meat-specialty company Gabriel Fleury SA and Asian food company Sushi Mania.
Business with the Migros Group rose by 0.9%, to CHF 4.5 billion. While sales remained flat on a cost-adjusted basis, Denner and LeShop.ch sales increased.
M-Industry's wholesale business was affected by declining tourist numbers in the HoReCa industry, and its shrinking cash-and-carry business. Sales saw a drop of 1.5%, to CHF 1.1 billion.
In 2016, the company sank more than CHF 200 million into the Swiss side of its business, focusing on expansion, sustainability and resource efficiency.
The construction of two wood-burning power stations at Gränichen and Estavayer-le-Lac helped decrease its greenhouse-gas emissions by 15,000 tonnes per year.
The company said that it believes that the Swiss market will continue to be challenging.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.
