Dr. Oetker acquires the East German bakery company, Kathi
In a significant move for the German baking industry, Dr. Oetker, a leading food company known for its baking products, frozen pizzas, and desserts, has acquired Kathi, a well-established baking brand based in Saxony-Anhalt. The acquisition, finalised recently, aligns with Dr. Oetker’s strategy to expand its presence in Eastern Germany and strengthen its portfolio in the baking sector.
The acquisition involves the takeover of Kathi’s production facilities in Saxony-Anhalt, which will continue to operate under Dr. Oetker’s management. Kathi’s popular baking products, such as cake mixes, ready-made cakes, and baking ingredients, will remain part of the product lineup, with a commitment to maintain the high quality and traditional recipes that Kathi is renowned for.
Dr. Oetker has announced plans to invest in modernising and expanding the Kathi production site to increase efficiency and capacity. The company also aims to integrate new baking technologies and product innovation to meet evolving consumer preferences, including healthier options and convenience products. Leveraging Dr. Oetker’s extensive distribution network, Kathi products will become available in more regions, both within Germany and potentially abroad.
Sustainability initiatives are also a key focus, with plans to make production processes more resource-efficient and to use environmentally friendly packaging. The acquisition is expected to preserve jobs and support the local economy in Saxony-Anhalt, offering consumers a wider variety of high-quality baking products under a trusted brand.
As a family-run company, Kathi aligns with the values, goals, and strategy of the family-owned company Oetker. Despite the sale, Kathi will continue to be known as "the original from Halle an der Saale". The purchase price for Kathi remains confidential.
Established in 1951, Kathi specialises in baking mixes and flour. The company is deeply rooted among consumers in eastern Germany, and the acquisition is seen as a strategic move by Dr. Oetker to strengthen its position in the baking mixes and cake specialties sector.
The Oetker group, which generates around seven billion euros in sales annually, operates Kathi independently with its current management. With approximately 29,000 employees, Dr. Oetker is a heavyweight in the German baking sector. The acquisition of Kathi marks a significant step forward in Dr. Oetker’s mission to continue growing and innovating in the baking industry.
- The acquisition by Dr. Oetker, a leading food company, will involve the incorporation of Kathi's vocational training programs in the baking sector, further consolidating its industry expertise.
- As part of Dr. Oetker's business strategy, the company plans to invest in Kathi's manufacturing facilities, fostering finance-driven growth in the baking industry through modernisation and expansion, as well as product innovation.
