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Gay Lea expands share of cheese market with purchase of Salerno Dairy

Wednesday, February 5, 2014

by MATT MCINTOSH

The family-owned Salerno Dairy Products Ltd. has been bought by Gay Lea Foods Co-operative Ltd., Ontario’s largest dairy co-operative, for an undisclosed amount.

Employing 185 people, the Hamilton-based Salerno Dairy manufactures and markets traditional Italian cheeses to retail stores, as well as other foodservice businesses and organizations.

According to Gay Lea’s website, the Salerno Dairy’s wide range of products will help the co-operative “establish relationships with new customers,” and enhance their current position in the cheese market.

“The co-operative manufactures a variety of dairy products, but has a very small cheese business,” says Michael Barrett, chief operational officer at Gay Lea Foods. “Cheese and yogurt are a very significant part of the market, and the Salerno purchase helps Gay Lea continue its growth into that cheese market.”

Gay Lea reached a deal with Salerno this past weekend, and the company was bought, officially, on February 1.

“With this acquisition we are merging two of Ontario’s best traditions: a farmer-owned co-operative and a family-owned business” says Paul Vickers, chair of Gay Lea Foods, on the co-operative’s website.

Gay Lea Foods has five production facilities in Ontario, and is owned by approximately 1,200 dairy farmers. The co-operative’s sales reached $560 million in the last fiscal year. BF


 

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