Emmi strengthens its collaboration with US yogurt supplier "siggi's"

International growth

Lucerne, 23 December 2013 - The United States is Emmi's largest foreign market. The majority of sales there are generated by the exports of Swiss cheese as well as locally produced cow's and goat's milk specialty cheeses. Cheese will continue to be Emmi's primary focus in the US. However, with the stake of around 25% in the yogurt operations of siggi's as well as the collaboration in the manufacturing of their yogurts, Emmi will be able to take part in the dynamic growth of the US yogurt market. Based in New York siggi's is an up-and-coming yogurt supplier which expects to generate sales of around USD 17 million with its traditional Icelandic and Scandinavian-style yogurts in 2013.

In the next few years, Emmi's strategy is to increase the share of sales attributable to its international business to 50 % (currently around 43 %). A significant portion of international sales is generated in the United States, the company's largest foreign market. Traditionally, Emmi's focus here has been on the cheese business; it has been present in the US market through exports of Swiss cheeses for decades. These activities have been strengthened in recent years through the acquisition of the cheese producers Roth Käse and Cypress Grove Chevre. The increase in the stake in siggi's also gives Emmi a presence in the fast-growing, dynamic US yogurt market.

Increase in collaboration Emmi Penn Yan LLC, the former CASP dairy plant, is located in the New York area and specialises in producing high-quality yogurts for the local market. Emmi has formed a strategic partnership with siggi's and will produce siggi's full product line in 2014 at Emmi Penn Yan LLC. Founded in 2005, siggi's supplies yogurt inspired by the traditional Icelandic dairy product "skyr". The Icelandic-style yogurts have a creamy texture, are low in fat and sugar, and high in protein. Emmi will handle all of the production needs of siggi's and further support this health- and lifestyle-oriented brand with a stake of around 25 %. This will allow Emmi to participate in the growth of this unique brand. Siggi's products are available in premium organic and health-food stores in the US.

Matthias Kunz, Head of International Business at Emmi: "This stake gives Emmi an interesting involvement in an innovative and fast-growing company. In addition, Emmi and siggi's have a common understanding of what makes a good dairy product that is clearly distinct from the competition." The parties have agreed not to disclose contractual details.

Expansion of Emmi's presence in the US

Contacts

Analysts and investors: Esther Gerster, Head of Group Communications & IR T +41 41 227 27 86 esther.gerster@emmi.com

Media: Sibylle Umiker, Head of Media Relations T +41 41 227 28 40 media@emmi.com

About siggi's Siggi's, based in New York, was founded by Siggi Hilmarsson in 2005. Siggi's makes yogurt products with milk from local family farmers from New York state. Their recipes are based on the Icelandic/Scandinavian traditions and follow a strict ingredient strategy: low in sugar and fat, with just a few high-quality ingredients. The best-known siggi's product is "Icelandic-style strained yogurt", based on a traditional skyr recipe, which is now available in 14 varieties. Siggi's products are primarily available in premium supermarkets including Whole Foods and Wegmans, among others. The company expects to post sales of around USD 17 million in 2013.

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131223_Emmi_MR_siggis.pdf

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siggi's website: siggisdairy.com

Emmi Roth USA website: www.emmirothusa.com

Cypress Grove Chevre website: cypressgrovechevre.com

Wikipedia entry on skyr: en.wikipedia.org/wiki/Skyr