Hochland's Russian subsidiary may buy out rival brand Sirtaki
Hochland Russland LLC, the Russian subsidiary of German cheese producer Hochland, plans to buy out the popular brined cheese brand Sirtaki from Neva Milk Group. This was reported by Kommersant, citing unnamed market sources.
Albert Sufiyarov, co-owner of Neva Milk, confirmed to the newspaper that negotiations were taking place, saying that Hochland's Russian subsidiary is now the only candidate in line to acquire the Sirtaki brand. According to investment banker Ilya Shumov, the Sirtaki brand is valued at about RUB 350-400 million.
Hochland Russland LLC is a 100% Russian subsidiary of German cheese producer Hochland. The company produces the Almette, Grunlander and Fetaxa cheese brands. According to its financial statements as posted by the Federal Tax Service, the company's revenue in 2024 was RUB 54.01bn, up 22% year-on-year, while net profit fell 40.5% to RUB 3.09bn.
Sirtaki is essentially Fetaxa's main competitor on the Russian retail market. According to NTech business analysts, the brands are among the three most popular in the brined cheese category. Kommersant's source on the dairy market calls the potential deal a logical one for Hochland, which is acquiring its competitors around the world. “Sirtaki is a strong local brand, and its acquisition by Hochland can be seen as reducing pressure on the parent company while maintaining its position on the Russian market,” the source said.
A brand can be sold through a purchase of the brand itself and the assignment of all licence agreements for its use. The transaction must be approved by the Federal Antimonopoly Service if the trademark is worth more than 20% of the book value of the seller's fixed and intangible assets or more than RUB 7bn. In addition, companies controlled by foreigners from unfriendly countries must obtain the Government Commission's permission to acquire assets.