Since 1929, Gropper has been run by the same family. Three generations into its story, the German dairy company sources its raw milk from 780 dairy farmers around the city of Bissingen in Germany, within a radius of about 160 kilometres. These partnerships are built to last, with contracts spanning between two to three years and fair pricing tied to market averages.
“We maintain strong relationships with our suppliers through ongoing communication and collaboration, fostering trust and mutual growth,” says Chief Executive Heiner Gropper. “This approach helps us build a resilient and sustainable supply chain for the future.”
But in a fragmented dairy market with few big, cross-border operations, it’s hard to finance innovation. With Gropper diversifying into smoothies, juices, and milk-based drinks, it turned to the European Investment Bank for backing.
The European Union’s financing arm invested €49 million in September 2024 in Gropper to back the modernisation of its existing facilities – a move that will decrease the use of natural gas and cut transport emissions through automated storage and logistics. The project also includes investments in infrastructure for renewable energy generation.
“We are pleased to work with Gropper, as it’s a family-owned company,” says Karol Czarnecki, who works on the project at the European Investment Bank. “Companies like Gropper are the true cornerstone of Germany’s economy. We deeply respect their unique mix of business stability and nimble management. Collaborating with them has been an invaluable experience, enhancing our insights into this market.”
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A sustainable bet
Gropper is the second-largest producer of organic milk in Germany, ranking among the top 15 diary producers by volume. Over the years, Gropper has diversified its product line by venturing into juice and smoothies, a joint venture with the Dr Oetker company. Now, Gropper produces fresh dairy and fruit-based products equally.
In 2023, Gropper sold 60% of its products in Germany, and the rest to customers in other European countries, with Spain being the most important market, followed by the United Kingdom, Austria and Poland. Half of its milk sales are of organic raw milk or milk labelled for improved animal welfare.
To keep up with its green transition and sustainability objectives, Gropper bets on modernising its production and storage with energy efficient storage techniques and logistics that avoid extra kilometres of transport between different stores.
“Our modernisation isn’t just about new tools and techniques. It’s about envisioning a sustainable dairy industry,” says Gropper. “This vision aligns with broader global trends in the dairy market, which, despite its challenges, continues to innovate in areas like waste reduction and automation.”
Gropper is replacing its production lines with newer, automated technology and increasing production capacity.
“By investing in the revamping of their production and storage facilities, Gropper is boosting its efficiency, the quality of their products, but also creating energy savings as they move away from natural gas,” says Jean-Francois De Saedeleer, who also worked on the project at the European Investment Bank.
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GROPPER PRODUCTION MODERNISATION
The operation concerns the modernisation of productive and storage capacities of a German family-owned dairy company, over the period 2023-2026.
