Trewithen Dairies acquired by major German processor

Cornwall-based Trewithen Dairy has been acquired by large German dairy processor Ehrmann for an undisclosed sum.

The acquisition will give Ehrmann a larger presence in the UK market, and it plans to invest in a £20m production facility, due to open at the site near Lostwithiel in 2026.

It will be used to create dessert products to be sold through UK retailers and is expected to account for about 15% of Ehrmann’s sales globally.

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Cornish Farm Dairy, which trades as Trewithen Dairy, produces a range of clotted cream products, milk, yogurts, and butter, which are sold at retail, wholesale and to the food service sector.

Trewithen chief executive Paul Berne said: “We’re delighted that we’re able to expand our offering, create more jobs in the local economy, and further bring the joy of quality Cornish produce to more tastebuds across the UK.

“The new products are already proven in other markets, so it’s great to be producing them with excellent British milk to be enjoyed by more British tastebuds.”

Ehrmann has 3,200 employees and generates more than €1.1bn (£930m) of revenue each year.

Company chairman Christian Ehrmann said it had enjoyed successes in the UK over the past two years working with major supermarket chains.

He said: “The acquisition is highly significant as it opens up local UK production; enabling us to reduce the carbon footprint and guarantee the freshness of our products.

“Choosing Trewithen’s impressively high-quality Cornish milk production, we’re delighted to bring German product innovation together with the very best of British milk.”