"In order to promote the export of high-quality products produced in Latvia, H. & J. Brüggen KG, through its subsidiary, will become a 50% shareholder of the Dobeles dzirnavnieks subsidiary AS Rīgas dzirnavnieks. The establishment of the joint venture will increase the volume of cereal processing in Latvia and will contribute to the competitiveness of Rīgas dzirnavnieks’ products on the global market," said a release from the company October 16.
Kristaps Amsils, Chairman of the Management Board of AS Dobeles dzirnavnieks said:
“H. & J. Brüggen KG is a strong, well-known brand in the global market, with whom we have had successful cooperation for several years, providing them with supplies of oat flakes and other cereal products produced in Dobele. The establishment of the joint venture will strengthen the cooperation between the two companies, contributing to the sustainable growth of Rīgas dzirnavnieks and ensuring stable cereal processing volumes in Latvia.”
The joint venture was established as a strategic partnership with the aim of developing Rīgas dzirnavnieks as a strong conventional oat processing company at a European level and promoting the exportability of high value-added products.
Rīgas dzirnavnieks will specialise in the pre-processing and processing of oat grain, while H. & J. Brüggen KG, as a well-known global brand with long-term cooperation with major retail chains in Europe and worldwide, will ensure the sale of products produced in Rīga on the global market.
The business transaction only involves the processing of oat grain. The production of flour and flour products, as well as the Rīgas dzirnavnieks brands Herkuless and Saimniece, which are popular in Latvia, will continue to be owned by Dobeles dzirnavnieks, which will continue working on the development of both brands and the expansion of its product range.
According to Kristaps Amsils:
“Specialising in the processing of oat grains will enable us to compete more successfully on the global market, expand our product range and develop new products, including niche products with high added value. We are confident that by working in cooperation with H. & J. Brüggen KG, we will all gain additional experience and knowledge that will also contribute to the overall development of the Latvian grain processing industry.”
AS Dobeles dzirnavnieks is Latvia’s largest grain processing and food production company. Its main activities are the production of all types of wheat flour, semolina, flour mixtures, pasta, cereal flakes, groats and animal feed. In 2023, the turnover of AS Dobeles dzirnavnieks was EUR 237.5 million, of which exports accounted for 60%.
AS Rīgas dzirnavnieks is a subsidiary of AS Dobeles dzirnavnieks, which produces all types of wheat, rye and oat flour, flour mixes, breakfast cereals and other products under the Herkuless brand. In 2023, the Company had a turnover of EUR 31.28 million.
H. & J. Brüggen KG is a leading European producer of cereal products. It is a family-owned company in its fourth generation, founded in 1868. H. & J. Brüggen KG’s main production facilities are located in Lübeck, Germany, where breakfast cereals, muesli, cereal bars as well as oat flakes and other shelled cereal products are produced. The company also has production sites in Poland, France and Chile and employs around 2,000 people. H. & J. Brüggen KG exports its products to more than 90 countries worldwide (around 230,000 tonnes of products per year) and has a turnover of almost EUR 560 million.
