DENMARK/NZ: Fonterra exits UK venture with Arla

20 November 2009 | Source: just-food.com

Arla Foods has strengthened its control over the dairy brand Anchor in the UK after Fonterra, the New Zealand dairy giant, opted to sell its stake in a venture between the two groups.

Fonterra has sold its 25% stake in the business to Arla, which said today (20 November) that it would now look to develop the Anchor brand.

"Anchor is a very strong, successful, brand in the UK and it is a good business in which to invest," Arla Foods UK chief executive Peter Lauritzen said.

"The butter, spreads and margarine market is a key category for Arla and this is a logical step for us to take this brand forward and develop it further in the UK."

Under the deal, Arla said Fonterra would supply the Danish dairy group with bulk butter for the Anchor brand and own-label products in the UK.

Arla also holds the rights over Anchor packet butter and aerosol cream in Europe.