The new shape of DMK Baby
The Business Unit has revamped itself on the German market and is about to present the highly modern brand Alete
The Baby business received a boost in February 2019 with the takeover of Alete and German Baby Food (Milasan and Private Label). The move saw DMK underline its strategic choice to focus on the market and consumers. DMK Baby has also started to reposition itself in the German market in order to grow profitably, one of the goals of Vision 2030. That process will be completed in mid 2020. “The focus is on strengthening our Private Label business and brands, on increasing our efficiency in logistics, strategic partnerships with third-party suppliers, bringing together our employees at our new site in Mannheim and repositioning the Alete brand,” said Stefan Eckert, Chief Operating Office DMK Baby. The traditional brand lost some market share before being taken over by DMK but it still enjoys a high level of trust among German consumers, particularly when it comes to supplementary baby food, a highly attractive, dynamic product that continues to grow. In terms of brand perception, the brand is ranked in second place on the market, just behind Hipp, the market leader. “It’s a very promising position for a relaunch: we will keep the well-known name and logo but the brand’s DNA and strategy will be redefined to become more modern and relevant,” says Martina Molner, who is responsible for the brand’s strategic relaunch. In the future, Alete will stand for health-conscious child nutrition and thus tap into the trend for healthy eating, and that way gain relevance for families with babies and toddlers.
In terms of brand recognition, Alete ranks in second place. In the future, it will stand for health-conscious child nutrition, thus tapping into the healthier eating trend, in order for the brand to gain relevance among families with babies and toddlers.
A new design will enhance Alete’s repositioning, and is expected to hit supermarket shelves starting in the middle of next year. For now, all the Alete products are being optimized and there are a good 70 of them with a focus on organic quality and reduced sugar. “We will strategically expand the product portfolio in 2020 in order to share in the growth of the infant nutrition market, for one-year-olds and above.” Together with Humana, the baby milk brand, whose products are made at the new plant in Strückhausen (photo on the left), DMK can strengthen its retail position with an increasing range of products and both brands will be sold by Humana sales, in Bremen, starting on January 1, 2020.
Bundling brand power
The two traditional German household names for baby food, with their decades of experience, will now be managed together to help drive growth in the German market. The Private Label business will also expand significantly, in order to create more value: German Baby Food will be traded under the name Sunval Baby Food, together with Sunval, DMK Baby’s own private label distribution unit, as of January 2020. Sales, management and logistic will all be handled in Mannheim at a new administration location. That means a move away from Alete’s previous home in Bad Homberg. “Sunval production will remain at the site in Waghäusel.” That means Sunval Baby Food can secure a strong position in the consolidating German and European market for baby milk and supplementary food. There are also plans to win better access to new discount customers with growth potential in Europe, such as Aldi and Lidl. That’s not to forget business with current customers, which will also be further developed.