Kri Kri: How Trump’s Tariffs Impact US Exports and Expansion Plans

A significant risk for the Dairy Industry arises from tariffs imposed on imported products in the US, as stated by Kri Kri’s Financial Director, Konstantinos Sarmadakis, during a presentation of the company’s financial figures for 2024. Specifically, the Financial Director highlighted that they are closely monitoring developments in the rapidly changing tariff environment because these tariffs could hinder the rapid expansion of their products in the American market. The entry of Greek dairy products into the US occurred in September 2024 with the launch of the Greek Frozen Yogurt series in Texas. Despite an initial target of reaching 300 stores by March 2025, the product is currently available in 250 locations. For this year, this investment is not expected to significantly impact the company’s financial results due to limited market exposure. However, in 2026, Kri Kri plans to officially collaborate with a major US retailer for private-label Greek Frozen Yogurt production, with negotiations nearing completion. Concerns also arise regarding potential EU countermeasures, such as imposing tariffs on US imports like soy or pork, which could increase feed costs and subsequently dairy production costs. Regarding currency exposure, it remains low but may involve hedging strategies in the future. Price adjustments are anticipated in 2025 to offset high milk costs, with discussions already underway with key clients. Investments exceeded €25 million in 2024, with projections between €21-25 million for 2025. The ‘Greek Yogurt Dynamo’ project aims to expand biogas facilities and production capacity to meet US demand. Financial highlights for 2024 show an 18.5% revenue increase to €256.4 million, with strong export growth in yogurt (+32.5%) and ice cream (+19.4%). Domestic yogurt sales remained stable at €76 million, while ice cream sales saw double-digit growth (+13.4%). Despite challenges, Kri Kri anticipates robust double-digit sales growth reaching €300 million in 2025.