Fresh News From Kri Kri

Following a wave of enthusiasm from readers and peers about Kri Kri, I spoke with Konstantinos Evangelou Sarmadakis, the company’s CFO, to understand recent developments.
Kri Kri is a Greek producer of yogurt and ice cream, operating through both branded products and private-label partnerships across international markets. I first became interested in the company earlier this year while living in Athens, drawn not only by the sheer number of glowing reviews from local consumers, but also by a management team that has quietly executed at an exceptional level for decades. (You can find my full deep dive on the company here), and the last conversation with Mr Sarmadakis here.)

Since I prefer giving you the most authentic version of the call, the structure below follows the topics we discussed.

The Greek Yogurt Dynamo

Kri Kri is entering a new scale phase powered by a major strategic investment scheme: a €52m CAPEX project supported by a €22–23m tax relief subsidy, spread over three years. The full plan runs until end-2027, and management expects it to double 2024’s production capacity, enabling the company to reach €500m in turnover once fully ramped.

Kri Kri’s biggest constraint was not demand, but supply. The company found itself unable to deliver in full to customers so increasing capacity was unavoidable.

The project covers every step of the chain, from milk reception to warehousing, including new production lines, pasteurisation units, and expanded biogas facilities. It also involves significant hiring and training, as well as long lead times for specialised machinery: production lines today can take 12–13 months to arrive.

Recent and upcoming milestones:

• A new family-size yogurt cup line began operating in July 2025.
• Two additional lines (family cup + small cups) expected mid-2026.
• Around 70% of the project will be completed by end-2026, with full completion expected in 2027.

The project’s IRR is above 30%, rising to 35-40% when including the subsidy.

The equipment is sourced mainly from Germany and France, where hygiene and quality standards are highest, though the CFO noted that Chinese suppliers are improving rapidly in terms of technology.

Market Dynamics

Demand for authentic Greek yogurt continues to accelerate, gaining share from “Greek-style” alternatives. The total segment for the UK grew +48% this year, is expected to grow another ~60% in 2025, and should continue expanding at 30–40% annually in 2026.

Historically, the UK acted as a leading indicator. Meaning, what happens there tends to spread across other markets with a lag.

Management sees this not as a passing fashion but as a structural nutritional shift. Greek yogurt aligns with modern dietary preferences (high protein, low sugar, natural ingredients) and behaves like a category with long-term staying power.

The US: A New Market To Conquer

Kri Kri currently operates in the US only through ice cream (frozen yogurt) but no yogurt presence yet.
2025 was a pilot year, with management intentionally cautious because of tariff-related risks. They avoided signing deals that could turn loss-making post-tariffs.
Now, visibility is improving:

• Contract signed with ACI (Albertsons Companies), serving around 250 stores.
• Another major retailer agreement is in the final signing stage.
• Kri Kri will supply private-label Greek frozen yogurt for this partner.

The CFO expects a long adoption cycle. Americans need time to get familiar with the product but is optimistic that footprint expansion will also help develop the category itself.

KPIs, Operational Efficiency and Margin Outlook

Near-term focus has been on simply meeting strong demand, but once new capacity is fully operational, management expects significant margin benefits from:

• Better operational efficiency
• Lower waste
• Improved processing costs

The company closely tracks commodity prices, and recent drops in butter and skimmed milk powder (which Kri Kri imports from Europe) should start influencing domestic raw milk prices next year.

Key margin insights:

• Price increases passed through in late 2025 added +0.5 to +0.6pp to margins.
• Another +1.0 to +1.5pp expected next year.
• Management anticipates peak margins in 2026, potentially above 15%, though this may normalise post-2027 to a sustainable ~15% level.

Milk sourcing remains stable: only 5% of milk is imported, and Kri Kri maintains relationships with 55–60 dairy farms. Legally, contracts cannot include exclusivity, but in practice relationships behave as if they were exclusive.

High Margin Products and Functional Food

Kri Kri sees strong potential in specialty products, where price per kilo and margins are naturally higher. These products do not require longer R&D cycles but need consumer education, meaning adoption is slower.

For products with health claims, clinical trials may be needed, sometimes two years or more of validation.

The CFO linked this to a broader UN-driven global trend: the integration of health and prevention into everyday food. He expects growth in functional offerings for issues like blood pressure, early-stage metabolic conditions, and more.

Capital Allocation: Share-Based Compensation

Kri Kri has recently used buybacks primarily to deliver share-based compensation for employees.
The current holding of approximately 100,000 shares is modest, and purchases tend to occur only when the share price is lower.

Euronext Acquisition of ATHEX Group 

The Euronext’s acquisition of the Athens Stock Exchange (ATHEX) should bring greater liquidity, visibility, and international investor better access to Greek equities. If executed well, this could be a meaningful long-term tailwind for companies like Kri Kri, which already meet the governance and quality criteria of more mature markets.

Key Takeaways 

I was also pleased to see that the discussion aligned closely with my previous meeting earlier this year. The outlook remains positive for Kri Kri, and I hope the Greek market will continue to attract more investors in the future, especially given the high quality of some of its overlooked companies.