Glanbia
Encyclopedia
Glanbia plc is an international nutritional solutions and cheese group, headquartered in Ireland
. Glanbia is listed on the Irish and London Stock Exchange
(Symbol: GLB). The Group has four segments; US Cheese & Global Nutritionals, Dairy Ireland, Joint Ventures & Associates and Other Business. Including Joint Ventures & Associates, Glanbia has over 4,300 employees worldwide and manufacturing & processing facilities in seven countries.
pool which is a key raw material for Glanbia Nutritionals.
system in April 2015 is the first opportunity to expand milk output since 1984. Expansion is underpinned by growing global demand for dairy products supported by demographics and emerging economies.
market. Nutricima is developing a portfolio of branded milk powder-based products for the Nigerian market.
imports into the port of London. Irish butter came under pressure by competitors which were modernising their systems with the newly developed cream separators. As a consequence, Irish butter imports to London dropped to under one per cent in the early 1880s.
The new technologies and their introduction into Ireland fundamentally transformed the country's dairy sector, which had previously been operated by small independent farmers. In order to support the costs of acquiring the new equipment, dairy farmers grouped together and built centralised dairy processing facilities – which became known as ‘creameries’. In the late 1880s, dairy farmers began adopting the cooperative
format, often to enter into direct competition with the private creameries. Farmers who supplied milk to the co-ops were better served than those who sold it to the private creameries. In time, most of those businesses found that they were unable to compete with the farmer co-operatives, and many sold their premises and businesses to the co-ops.
The numbers of creameries increased dramatically by 1900, and by the eve of World War I
, the country counted nearly 800 plants. In spite of the scarcities, political unrest and violent incidents, the World War I era had been a very prosperous period for farmers. The crisis in the country's agricultural market following the war led to a large number of creameries to shut down.
Government policy intervened in the 1920s with the aim of further consolidating the dairy market. The number of individual creameries was reduced to just 17 large-scale facilities in the years following World War II
. At the same time, the number of cooperatives in Ireland had shrunk back to less than 220. Butter remained the Irish dairy industry's core product, accounting for the vast majority of the creameries' production.
The members of five co-operatives agreed to join forces and become Waterford Co-operative Society Limited in 1964. The formation of Waterford Co-operative in 1964 was the first of the major amalgamations and it was the beginning of a story that would be repeated throughout Ireland over the next 40 years. The size of the co-operative gave them the opportunity to produce a bigger range of products. With its head start, Waterford was able to grow and a decade later, in 1974, this scale of operation would help in winning the French Yoplait
franchise to produce the prestige range of yogurts at Inch, County Wexford
– an association that continues to this day. Waterford continued growing throughout the 1970s, amalgamating with a number of other, smaller creameries.
In the meantime, 25 other cooperatives agreed to join together to establish the Avonmore Creameries Federation in 1966. Backed by the British dairy giant Unigate
, the new federation began the construction of a new multi-purpose dairy plant in Ballyragget
, County Kilkenny
. The plant was the biggest processing facility in Europe at that time. Today, the Ballyragget facility is the largest integrated dairy site in Europe, processing about 20% of the Irish milk pool. Avonmore originally focused on the production of butter and powdered skim milk. On 1 September 1973, 20 societies amalgamated, thus creating Avonmore Farmers Ltd. As time moved on, Unigate’s involvement changed and, in 1978, the cooperative bought back Unigate's stake in the Ballyragget facility.
The two companies, Avonmore and Waterford, went public in the 1980s. Avonmore went first, becoming Avonmore Foods plc on 6 September 1988. Waterford Foods plc was launched on the Irish Stock Exchange
(ISEQ) on 6 October 1988. Both groups remained majority controlled by the dairy farmers that had formed the original cooperatives. With new access to capital, both companies embarked on a programme of expansion.
Avonmore’s strategy included growing the dairy business in the UK and USA. They also decided to grow the business through acquisition. Over the next nine years they made 28 acquisitions in Ireland, the UK, the USA, Hungary
, Germany
and Belgium
. The major developments were in the UK with liquid milk and mozzarella cheese and in the USA with cheese production in Wisconsin
, Illinois
and Idaho
. In the years following flotation, Avonmore also invested in the meat business in Ireland.
In 1989, the year after the establishment of Waterford Foods plc, the Group bought Galloway West in the USA heartland dairying state of Wisconsin. The company manufactured cheese, condensed milk
and food ingredients. Later in the year, Waterford bought A.Heald Limited of Manchester, a company that operated in the liquid milk and fruit juice business. Waterford also expanded in Ireland with the move into the prized Dublin milk market. In 1995, Waterford bought The Cheese Company, one of the two largest cheese manufacturers in Great Britain.
Both organisations were focused on similar growth strategies at home and overseas. Speculation was, therefore, rife as to a possible merger between the two dairy giants. The talks began in 1991. However, the two sides were unable to reach an agreement at that particular time.
, the group once again found itself in merger talks with Avonmore. On 13 April 1997, Waterford confirmed in a media statement that it had received a formal approach from Avonmore Foods plc and Avonmore Creameries Limited and advised that the Waterford Board was considering this approach. The prize for a successful merger would be significant: an Irish based, world-scale food company. This proposed coming together would represent the biggest amalgamation in the history of the Irish dairy industry and possibly of Irish agribusiness.
Intensive dialogue took place between Avonmore and Waterford throughout April and May 1997. On 26 May, the Boards of Waterford Foods plc and Waterford Co-operative Society met to consider amended proposals from Avonmore Foods plc and Avonmore Creameries Ltd. The merger proposals provoked serious debates at numerous shareholder meetings throughout Waterford and Avonmore. Some shareholders had strong reservations and among their concerns were issues such as perceived loss of identity, dominance by one party over another, relative valuations of the two organisations, size and scale of the new entity, representation and weakening of farmer control. However, the overwhelming majority of shareholders believed that the merger was the right option for both organisations.
The first vote took place on 11 July 1997, exactly three months after the merger was formally proposed. The first vote followed an intensive six week programme of shareholder information meeting throughout the Waterford and Avonmore areas. The successful merger of Avonmore Creameries Limited and Waterford Co-operatives Society, on 4 September 1997, formed the new Avonmore Waterford Co-operative Society. On the same date, the merger of Avonmore Foods plc and Waterford Foods plc, formed the new Avonmore Waterford Group (AWG) plc.
The result of the 1997 Avonmore Waterford merger was to create the fourth biggest dairy processor in Europe and the fourth biggest cheese producer in the world. Consequently the Avonmore Waterford Group announced a reorganisation programme, following a post-merger business review. The target was to increase the Group's competitiveness. The Group strategy was to concentrate food ingredients activities in large scale facilities in Ireland and the USA.
In the USA, the development strategy was to focus on the Avonmore West operation in Idaho which benefited from scale, location in an expanding milk field. Following the completion of a US$20 million investment programme, Avonmore West was a global supplier of advanced dairy food and nutritional ingredients. As a direct result, the decision was taken to dispose of the smaller cheese business in Wisconsin.
In Ireland, food ingredients activities were to be located mainly at Ballyragget and Virginia. Within the consumer food business, liquid milk operations were to be located at Ballytore, Waterford
and Drogheda
. These decisions resulted in the closure of smaller facilities.
In the UK, the Group closed its Appleby cheese facility and also disposed of the Manchester-based juice business during 1997. The cost saving measures targeted to save £20 million in 1998 and £40 million in 1999. It was anticipated that the programme would reduce jobs in AWG from 11,900 to 10,600. Job losses would be 750 in Ireland and 550 in the UK.
By May 1999, the reorganisation programme, announced in November 1997, was virtually complete. The Ballyragget site had been enhanced to accommodate the additional milk volumes. In the USA, the Group was investing US$36 million in Idaho to increase cheese production by 30 per cent and dairy-based food ingredients production by 22 per cent. On 1 June 1999, the Group announced two important strategic sales. The first was the disposal of the UK liquid milk operations to Express Dairies, for £125 million. The second was the sale of its Irish beef processing operations to Dawn Meats for £10 million.
and Special General Meeting were held to seek the necessary approval for the introduction of a new name. The result was that shareholders gave the Glanbia name an overwhelming endorsement. The change of title from Avonmore Waterford Group to Glanbia became official on 4 March 1999. The name Glanbia has its roots in the Irish language
– Glanbia means "pure food" in Irish.
On 11 August 2000, Glanbia announced a joint venture with Leprino Foods
. The objective was to increase market leadership for Glanbia and Leprino in the rapidly growing European pizza cheese
market. The alliance was soundly based: Leprino was the world’s largest producer of mozzarella cheese. As part of the joint venture, Leprino took a 49 per cent interest in Glanbia Cheese UK and granted exclusive use of Leprino’s patented technology to Glanbia. Leprino paid £27.50m in cash for the 49 per cent share of the business.
International joint ventures became a key element of the group's growth strategy. Consequently, in October 2003, Glanbia and PZ Cussons plc announced a €20 million joint venture to build a new factory in Nigeria to supply evaporated milk and milk powders to the Nigerian market. PZ Cussons plc had over a century of experience in Nigeria and had a well-developed distribution network. The name selected for the new joint venture company was Nutricima. Glanbia entered into yet another joint venture, this time with the Great Southwest Agency in New Mexico, USA. Building commenced at Southwest Cheese in January 2004 and the official opening of Southwest Cheese took place in 2006.
Glanbia continued to refine its focus, targeting the new and fast-growing ‘nutritional’ foods segment. As a result the Group began selling off its non-core segments, including its processed meat business, which was sold in 2002. In 2003, the company announced its intention to exit the fresh meat market which was subsequently sold in a management buy-out in 2008.
. KFIS specialises in the production, research and development of micronutrient premixes. The purchase increased Glanbia’s product range and brought further access to markets in Germany and Central Europe. On 6 September 2006, Glanbia announced the acquisition of the California
-based micronutrient premix business, Seltzer Companies Inc. The acquisition of Seltzer was a logical addition to the previously acquired KFIS. Both businesses have since changed their names to Glanbia Nutritionals. In 2007, Glanbia further expanded their micronutrient premix business with the completion of a new premix plant in Suzhou
, China
.
As part of its international expansion, Glanbia also acquired Canadian nutritionals business Pizzey’s Milling in August 2007. Pizzey’s, which mills flaxseed, created a way into the North American omega-3 market.
Glanbia further expanded its presence in the North American
market in 2008 by acquiring the Illinois-based sports supplement firm Optimum Nutrition. Optimum has a strong presence in the US market for whey-based premium sports supplements. According to Glanbia, Optimum Nutrition is an autonomous and wholly separate division within the Group. In January 2011, Glanbia announced the acquisition of Bio-Engineered Supplements and Nutrition (BSN), extending their sports nutrition portfolio. BSN is a developer and distributor of nutritional products designed for health, training, physique development and performance.
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
. Glanbia is listed on the Irish and London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
(Symbol: GLB). The Group has four segments; US Cheese & Global Nutritionals, Dairy Ireland, Joint Ventures & Associates and Other Business. Including Joint Ventures & Associates, Glanbia has over 4,300 employees worldwide and manufacturing & processing facilities in seven countries.
US Cheese & Global Nutritionals
Glanbia's US Cheese & Global Nutritionals business model incorporates cheese and nutritional solutions. US Cheese is a business-to-business, large scale, low cost producer that operates 24/7, 365 days of the year. Derived from cheese processing is a large captive wheyWhey
Whey or Milk Serum is the liquid remaining after milk has been curdled and strained. It is a by-product of the manufacture of cheese or casein and has several commercial uses. Sweet whey is manufactured during the making of rennet types of hard cheese like cheddar or Swiss cheese...
pool which is a key raw material for Glanbia Nutritionals.
Dairy Ireland
Dairy ireland manufactures milk and dairy products. EU market reform is creating new opportunities for growing milk supply and Ireland has a natural grassland advantage that can be exploited. The abolition of the quotaQuota
-Commerce:* Import quota, a type of trade restriction* Production quota* Sales quota, a minimum sales goal for a set time span* Tariff-rate quota, a type of trade restriction-Electoral systems:* Droop quota* Election threshold* Hagenbach-Bischoff quota...
system in April 2015 is the first opportunity to expand milk output since 1984. Expansion is underpinned by growing global demand for dairy products supported by demographics and emerging economies.
Joint Ventures & Associates
Glanbia has three principal international joint ventures; Southwest Cheese, Glanbia Cheese & Nutricima. Southwest Cheese operates one of the largest natural American-style cheddar cheese and high-protein whey processing facilities in the USA. Glanbia Cheese is a supplier of mozzarella cheese for the European pizzaPizza
Pizza is an oven-baked, flat, disc-shaped bread typically topped with a tomato sauce, cheese and various toppings.Originating in Italy, from the Neapolitan cuisine, the dish has become popular in many parts of the world. An establishment that makes and sells pizzas is called a "pizzeria"...
market. Nutricima is developing a portfolio of branded milk powder-based products for the Nigerian market.
Emerging from Ireland's Dairy Consolidation in the 1960s
Dairy products have long formed the backbone of Ireland's agricultural sector. In the early 19th century, the country was amongst the world's largest producers of dairy products. In 1848, Ireland accounted for two thirds of butterButter
Butter is a dairy product made by churning fresh or fermented cream or milk. It is generally used as a spread and a condiment, as well as in cooking applications, such as baking, sauce making, and pan frying...
imports into the port of London. Irish butter came under pressure by competitors which were modernising their systems with the newly developed cream separators. As a consequence, Irish butter imports to London dropped to under one per cent in the early 1880s.
The new technologies and their introduction into Ireland fundamentally transformed the country's dairy sector, which had previously been operated by small independent farmers. In order to support the costs of acquiring the new equipment, dairy farmers grouped together and built centralised dairy processing facilities – which became known as ‘creameries’. In the late 1880s, dairy farmers began adopting the cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
format, often to enter into direct competition with the private creameries. Farmers who supplied milk to the co-ops were better served than those who sold it to the private creameries. In time, most of those businesses found that they were unable to compete with the farmer co-operatives, and many sold their premises and businesses to the co-ops.
The numbers of creameries increased dramatically by 1900, and by the eve of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, the country counted nearly 800 plants. In spite of the scarcities, political unrest and violent incidents, the World War I era had been a very prosperous period for farmers. The crisis in the country's agricultural market following the war led to a large number of creameries to shut down.
Government policy intervened in the 1920s with the aim of further consolidating the dairy market. The number of individual creameries was reduced to just 17 large-scale facilities in the years following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. At the same time, the number of cooperatives in Ireland had shrunk back to less than 220. Butter remained the Irish dairy industry's core product, accounting for the vast majority of the creameries' production.
Yoplait
Yoplait is a brand of yogurt produced by a company owned by two French holdings, SODIAAL and PAI Partners.-History:In 1964, 100,000 French farmers merged their regional dairy cooperatives to sell nationally. In 1965, two co-ops, "Yola" and "Coplait", merged, becoming "Yoplait"...
franchise to produce the prestige range of yogurts at Inch, County Wexford
County Wexford
County Wexford is a county in Ireland. It is part of the South-East Region and is also located in the province of Leinster. It is named after the town of Wexford. In pre-Norman times it was part of the Kingdom of Uí Cheinnselaig, whose capital was at Ferns. Wexford County Council is the local...
– an association that continues to this day. Waterford continued growing throughout the 1970s, amalgamating with a number of other, smaller creameries.
In the meantime, 25 other cooperatives agreed to join together to establish the Avonmore Creameries Federation in 1966. Backed by the British dairy giant Unigate
Unigate
Uniq plc is a British food manufacturer. It is listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index.-History:...
, the new federation began the construction of a new multi-purpose dairy plant in Ballyragget
Ballyragget
Ballyragget is a small town in County Kilkenny in Ireland. It is situated along the river Nore in the north of the county. It is located in the province of Leinster in the south-east of the island of Ireland. Ballyragget situated on the N77 north of Kilkenny and has a population of 1,451...
, County Kilkenny
County Kilkenny
County Kilkenny is a county in Ireland. It is part of the South-East Region and is also located in the province of Leinster. It is named after the city of Kilkenny. The territory of the county was the core part of the ancient Irish Kingdom of Osraige which in turn was the core of the Diocese of...
. The plant was the biggest processing facility in Europe at that time. Today, the Ballyragget facility is the largest integrated dairy site in Europe, processing about 20% of the Irish milk pool. Avonmore originally focused on the production of butter and powdered skim milk. On 1 September 1973, 20 societies amalgamated, thus creating Avonmore Farmers Ltd. As time moved on, Unigate’s involvement changed and, in 1978, the cooperative bought back Unigate's stake in the Ballyragget facility.
International Expansion in the 1980s
Both Avonmore and Waterford expanded into the 1980s. At home, both companies established brand names, while Waterford continued with its Yoplait franchise. The two cooperatives continued to add product lines. Avonmore, for example, launched Avonmore Fresh Milk on the Dublin market on 1 June 1981.The two companies, Avonmore and Waterford, went public in the 1980s. Avonmore went first, becoming Avonmore Foods plc on 6 September 1988. Waterford Foods plc was launched on the Irish Stock Exchange
Irish Stock Exchange
-History:The Irish Stock Exchange is Ireland's only stock exchange and has been in existence since 1793. It is an Irish private company limited by guarantee. It was first recognised by legislation in 1799 when the Irish Parliament passed the Stock Exchange Act...
(ISEQ) on 6 October 1988. Both groups remained majority controlled by the dairy farmers that had formed the original cooperatives. With new access to capital, both companies embarked on a programme of expansion.
Avonmore’s strategy included growing the dairy business in the UK and USA. They also decided to grow the business through acquisition. Over the next nine years they made 28 acquisitions in Ireland, the UK, the USA, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
. The major developments were in the UK with liquid milk and mozzarella cheese and in the USA with cheese production in Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
and Idaho
Idaho
Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
. In the years following flotation, Avonmore also invested in the meat business in Ireland.
In 1989, the year after the establishment of Waterford Foods plc, the Group bought Galloway West in the USA heartland dairying state of Wisconsin. The company manufactured cheese, condensed milk
Condensed milk
Condensed milk, also known as sweetened condensed milk, is cow's milk from which water has been removed and to which sugar has been added, yielding a very thick, sweet product which when canned can last for years without refrigeration if unopened. The two terms, condensed milk and sweetened...
and food ingredients. Later in the year, Waterford bought A.Heald Limited of Manchester, a company that operated in the liquid milk and fruit juice business. Waterford also expanded in Ireland with the move into the prized Dublin milk market. In 1995, Waterford bought The Cheese Company, one of the two largest cheese manufacturers in Great Britain.
Both organisations were focused on similar growth strategies at home and overseas. Speculation was, therefore, rife as to a possible merger between the two dairy giants. The talks began in 1991. However, the two sides were unable to reach an agreement at that particular time.
A Merged Dairy Giant for the New Century
Waterford's expansion came at a cost however, and the group struggled to maintain profitability in the mid-1990s. By 1997, after Waterford posted a profit warningProfit warning
Profit warning is a warning declaration issued by a listed company to investors through a stock exchange. It warns that the profit of the company in the coming quarter will obviously decline or even have a loss compared with that of the same quarter of previous year...
, the group once again found itself in merger talks with Avonmore. On 13 April 1997, Waterford confirmed in a media statement that it had received a formal approach from Avonmore Foods plc and Avonmore Creameries Limited and advised that the Waterford Board was considering this approach. The prize for a successful merger would be significant: an Irish based, world-scale food company. This proposed coming together would represent the biggest amalgamation in the history of the Irish dairy industry and possibly of Irish agribusiness.
Intensive dialogue took place between Avonmore and Waterford throughout April and May 1997. On 26 May, the Boards of Waterford Foods plc and Waterford Co-operative Society met to consider amended proposals from Avonmore Foods plc and Avonmore Creameries Ltd. The merger proposals provoked serious debates at numerous shareholder meetings throughout Waterford and Avonmore. Some shareholders had strong reservations and among their concerns were issues such as perceived loss of identity, dominance by one party over another, relative valuations of the two organisations, size and scale of the new entity, representation and weakening of farmer control. However, the overwhelming majority of shareholders believed that the merger was the right option for both organisations.
The first vote took place on 11 July 1997, exactly three months after the merger was formally proposed. The first vote followed an intensive six week programme of shareholder information meeting throughout the Waterford and Avonmore areas. The successful merger of Avonmore Creameries Limited and Waterford Co-operatives Society, on 4 September 1997, formed the new Avonmore Waterford Co-operative Society. On the same date, the merger of Avonmore Foods plc and Waterford Foods plc, formed the new Avonmore Waterford Group (AWG) plc.
Reorganisation in the late 1990s
In the USA, the development strategy was to focus on the Avonmore West operation in Idaho which benefited from scale, location in an expanding milk field. Following the completion of a US$20 million investment programme, Avonmore West was a global supplier of advanced dairy food and nutritional ingredients. As a direct result, the decision was taken to dispose of the smaller cheese business in Wisconsin.
In Ireland, food ingredients activities were to be located mainly at Ballyragget and Virginia. Within the consumer food business, liquid milk operations were to be located at Ballytore, Waterford
Waterford
Waterford is a city in the South-East Region of Ireland. It is the oldest city in the country and fifth largest by population. Waterford City Council is the local government authority for the city and its immediate hinterland...
and Drogheda
Drogheda
Drogheda is an industrial and port town in County Louth on the east coast of Ireland, 56 km north of Dublin. It is the last bridging point on the River Boyne before it enters the Irish Sea....
. These decisions resulted in the closure of smaller facilities.
In the UK, the Group closed its Appleby cheese facility and also disposed of the Manchester-based juice business during 1997. The cost saving measures targeted to save £20 million in 1998 and £40 million in 1999. It was anticipated that the programme would reduce jobs in AWG from 11,900 to 10,600. Job losses would be 750 in Ireland and 550 in the UK.
By May 1999, the reorganisation programme, announced in November 1997, was virtually complete. The Ballyragget site had been enhanced to accommodate the additional milk volumes. In the USA, the Group was investing US$36 million in Idaho to increase cheese production by 30 per cent and dairy-based food ingredients production by 22 per cent. On 1 June 1999, the Group announced two important strategic sales. The first was the disposal of the UK liquid milk operations to Express Dairies, for £125 million. The second was the sale of its Irish beef processing operations to Dawn Meats for £10 million.
New corporate identity
On 15 February 1999, an Extraordinary General MeetingExtraordinary General Meeting
An extraordinary general meeting, commonly abbreviated as EGM, is a meeting of members of an organisation, shareholders of a company, or employees of an official body, which occurs at an irregular time. The term is usually used where the group would ordinarily hold an annual general meeting , but...
and Special General Meeting were held to seek the necessary approval for the introduction of a new name. The result was that shareholders gave the Glanbia name an overwhelming endorsement. The change of title from Avonmore Waterford Group to Glanbia became official on 4 March 1999. The name Glanbia has its roots in the Irish language
Irish language
Irish , also known as Irish Gaelic, is a Goidelic language of the Indo-European language family, originating in Ireland and historically spoken by the Irish people. Irish is now spoken as a first language by a minority of Irish people, as well as being a second language of a larger proportion of...
– Glanbia means "pure food" in Irish.
The new millennium
Leprino Foods
Leprino Foods is a cheese company heaquartered in Denver, Colorado, USA. It is the world's largest maker of mozzarella.-Overview:It was founded in 1950 as small, family-owned market selling grocery items and handmade cheese in Denver. It was first sold under the Gina Marie brand...
. The objective was to increase market leadership for Glanbia and Leprino in the rapidly growing European pizza cheese
Pizza cheese
Pizza cheese is a pasteurized process cheese food designed to melt well on pizza while remaining chewy. It is sometimes used on commercially produced pizzas in North America, where some people may mistake it for the more traditional Mozzarella...
market. The alliance was soundly based: Leprino was the world’s largest producer of mozzarella cheese. As part of the joint venture, Leprino took a 49 per cent interest in Glanbia Cheese UK and granted exclusive use of Leprino’s patented technology to Glanbia. Leprino paid £27.50m in cash for the 49 per cent share of the business.
International joint ventures became a key element of the group's growth strategy. Consequently, in October 2003, Glanbia and PZ Cussons plc announced a €20 million joint venture to build a new factory in Nigeria to supply evaporated milk and milk powders to the Nigerian market. PZ Cussons plc had over a century of experience in Nigeria and had a well-developed distribution network. The name selected for the new joint venture company was Nutricima. Glanbia entered into yet another joint venture, this time with the Great Southwest Agency in New Mexico, USA. Building commenced at Southwest Cheese in January 2004 and the official opening of Southwest Cheese took place in 2006.
Glanbia continued to refine its focus, targeting the new and fast-growing ‘nutritional’ foods segment. As a result the Group began selling off its non-core segments, including its processed meat business, which was sold in 2002. In 2003, the company announced its intention to exit the fresh meat market which was subsequently sold in a management buy-out in 2008.
Entering the ‘Nutritional’ foods segment
After establishing the group’s Nutritionals business in January 2003, Glanbia acquired German-based Kortus Food Ingredients Services (KFIS) in 2004 – thus marking the Group’s first nutritionals acquisitionAcquisition
Acquisition may refer to:* Takeover, the acquisition of a company* Mergers and acquisitions, strategy of buying and selling of various companies to quickly grow a company...
. KFIS specialises in the production, research and development of micronutrient premixes. The purchase increased Glanbia’s product range and brought further access to markets in Germany and Central Europe. On 6 September 2006, Glanbia announced the acquisition of the California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
-based micronutrient premix business, Seltzer Companies Inc. The acquisition of Seltzer was a logical addition to the previously acquired KFIS. Both businesses have since changed their names to Glanbia Nutritionals. In 2007, Glanbia further expanded their micronutrient premix business with the completion of a new premix plant in Suzhou
Suzhou
Suzhou , previously transliterated as Su-chou, Suchow, and Soochow, is a major city located in the southeast of Jiangsu Province in Eastern China, located adjacent to Shanghai Municipality. The city is situated on the lower reaches of the Yangtze River and on the shores of Taihu Lake and is a part...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
As part of its international expansion, Glanbia also acquired Canadian nutritionals business Pizzey’s Milling in August 2007. Pizzey’s, which mills flaxseed, created a way into the North American omega-3 market.
Glanbia further expanded its presence in the North American
North American
North American generally refers to an entity, people, group, or attribute of North America, especially of the United States and Canada together.-Culture:*North American English, a collective term used to describe American English and Canadian English...
market in 2008 by acquiring the Illinois-based sports supplement firm Optimum Nutrition. Optimum has a strong presence in the US market for whey-based premium sports supplements. According to Glanbia, Optimum Nutrition is an autonomous and wholly separate division within the Group. In January 2011, Glanbia announced the acquisition of Bio-Engineered Supplements and Nutrition (BSN), extending their sports nutrition portfolio. BSN is a developer and distributor of nutritional products designed for health, training, physique development and performance.
Proposal to sell Irish dairy division to farmers' co-op
In April 2010 Glanbia plc announced plans to sell its Irish dairy and agri-business division to the Glanbia Co-Operative Society. The farmer-led co-op owns 54.6% of the company. The Irish dairy and agri-business includes brands such as Kilmeaden, Avonmore and Yoplait. The deal was aimed at freeing up Glanbia plc to pursue its global cheese and nutritional ambitions, but it failed to achieve the necessary three-quarters approval from the co-op's members on May 10, falling just short at 73%.See also
- Bolger (1977), The Irish co-operative movement: its history and development, Dublin: Institute of Public Administration
- Breathnach (1992). The development of the dairy industry in county Waterford, In: Nolan, W. and Power, T.P. (eds) Waterford: history and society. Dublin: Geography Publications, 707-732
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