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Trends > Diversification

Barilla moves away from private label bakery as Lieken goes on the block

By Oliver Nieburg+

20-Jun-2012

Lieken has 12 bakeries located in Germany
Lieken has 12 bakeries located in Germany

Italian firm Barilla Holding has announced its intentions to sell German private label bakery business Lieken in order to focus on branded bakery and growth in its pasta, sauces and ready meals businesses.

Lieken is headquartered in Dusseldorf, Germany, and employs around 4,700 people across 12 locations. In 2011, the company recorded €756m in sales. 

Private label goes; branded stays

Barilla chairman Guido Barilla said: “Lieken is mainly a private label bread business, an area that does not fall within Barilla’s long-term core strategy.”

“Going forward, Barilla wants to focus on growing its pasta, sauces and ready meals businesses worldwide -- from the Americas to the Far East -- while strengthening its bakery business in Italy and other key European branded markets,” he said.

Industry consolidation

Barilla said that the private label bakery industry was undergoing consolidation due to the current economic environment.

“Lieken’s assets are likely to be of greater value to a new owner who could better position the business to participate in that consolidation,” said Barilla.

Last month, CSM put its bakery supplies business up for sale after also noticing a shift from traditional artisan bakery channels towards in-store and out-of-home bakery, triggered by consumers tightening purse strings in a tough economic environment.

Lieken

Lieken was acquired by Barilla in 2002 when it purchased Kamps.

The private label business manufactures and sells private label bread and bakery products to supermarkets and retailers in Germany. Barirlla said that bake-off products were increasingly becoming a large part of Lieken’s business.

Lieken sells toast bread, rolls and baguettes under the Golden Toast brand and sliced bread, whole loaves and cakes under the Liken Urkorn brand.

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