Juchem sells mallow production

Food manufacturing group Franz Juchem GmbH & co KG, Eppelborn, has sold the mallow business of their subsidiary Kurt Schmalz GmbH (including “jumi”brand rights) to Grabower Süsswaren GmbH, Grabow. Under the terms of the agreement,distribution of the mallow products in France and the Benelux states will remain in the hands of Juchem and is to be handled by their subsidiary “Elca”. Juchem announced that their mallow business – launched in 1992 following the takeover of Schmalz and relocated in 1999 to the main Juchem facility at Eppelborn – generated only 5% of the company’s overall revenue of €115 m.Production equipmentwas highly sophisticated, but in order to expand production considerable investmentwould have been necessary. Instead Juchem have decided to invest in their core business,and expand the cake mix and convenience product ranges. Juchem attracted considerable attention when they developed the first ever sugar free marshmallows.Grabower plan to develop the product and market it throughout Europe. The new improved sugarfree version of the old favourite will be presented for the first time at the ISM, say the Grabower group.