The 65,000-square-foot facility based near Milwaukee makes a wide variety of flavors and other ingredients for the dairy industry. The acquisition signals Denali's strategic move toward achieving greater consolidation and new capabilities in the ingredient production segment of its operations.
Denali said the addition of the facility, which generated approximately $20 million in annual sales in 2005, will nearly double its overall business. The facility will operate as Denali Ingredients LLC and serve dairy customers throughout North America. The company plans to invest in near-term improvements at the facility and expects to grow the current staff of 31.
In addition to developing more than 30 best-selling ice cream recipes, Denali partners with a majority of the nation's independent local dairies making regional and store-branded products to produce Denali's extensive portfolio of flavor varieties, including the company's signature Moose Tracks brand. In purchasing the CoolBrands facility, Denali said it intends to expand into manufacturing the flavors, chocolate coatings, fudge sauces, powders and other key ingredients required in its recipes. In addition, Denali expects to continue supplying ingredients to a number of other private-label manufacturers currently served by the plant.
"As we look to the future, the development of a more integrated approach to ice cream creation and production represents the next strategic step in our growth," said Neal Glaeser, president of Denali Flavors Inc. "At a time of increasing consolidation in the dairy industry, bringing an ingredient manufacturing capability in-house not only provides more control from a quality and supply standpoint, it also allows us to expand our product line of innovative products. We expect to bring more winning flavors to our partners and consumers as a result."
