Denali Flavors Enters Manufacturing

September 18, 2006
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WAYLAND — Denali Flavors Inc. has acquired a key manufacturing asset in the Milwaukee area from Toronto-based CoolBrands International.

The 65,000-square-foot facility makes a wide variety of flavors and other ingredients for the dairy industry. Through the acquisition, Denali Flavors, one of the nation’s leading inventors and marketers of premium flavors for the ice cream industry, will strengthen the ingredient production segment of its operations.

The $20 million facility was used to make ingredients for signature brands like Eskimo Pie and Godiva Ice Cream, and is expected to immediately double the Wayland-based business.

The facility will operate as Denali Ingredients LLC and serve dairy customers throughout North America. Denali plans to invest in near-term improvements at the facility and expects to add new hires to the 31-employee staff.

“As we look to the future, the development of a more integrated approach to ice cream creation and production represents the next strategic step in our growth,” said Neal Glaeser, Denali president. “At a time of increasing consolidation in the dairy industry, bringing an ingredient manufacturing capability in-house not only provides more control from a quality and supply standpoint, it also allows us to expand our product line of innovative products.”

Previously Denali has relied primarily on partners for the production of its 30-recipe portfolio, including its signature Moose Tracks brand. The new facility will allow it to expand into the manufacture of the flavors, chocolate coatings, fudge sauces, powders and other key ingredients required in its recipes.

In addition, Denali expects to continue supplying ingredients to a number of other private-label manufacturers currently served by the plant.    

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