Arla takes control of Westbury as First Milk bows out
Arla takes control of milk powder facility Westbury Dairies
Westbury, based in Wiltshire in south-west England, produces skimmed milk powder and bulk butter, including Anchor butter for Arla, which acquired the freehold of the site in December 2013.
"The Westbury site is now an integral part of that global network of Arla production sites and will benefit from being so, further helping the UK to play an even more significant role in our global strategy," Peter Giørtz-Carlsen, executive vice president of Arla's UK arm, said.
For its part, First Milk said the decision to sell its stake in Westbury comes as a "further step" in its drive to re-shape itself around cheese and liquid milk after a challenging period for the co-operative. In November, the company sold Glenfield Dairy to fellow UK group Graham's The Family Dairy for an undisclosed sum.
Westbury is billed by the companies as the UK's "most modern" skimmed milk powder and bulk butter production facility. As part of the agreement, First Milk will continue to have access to Westbury'd powder drying capacity during "peak milk production" and at other predetermined times of the year.
The financial details of the transaction were not disclosed.
Westbury was set up by three UK co-ops, First Milk, Milk Link and Dairy Farmers of Britain in 2003.
Dairy Farmers of Britain went out of business in 2009. Arla became a shareholder in Westbury in 2010. Two years later, Arla agreed a deal to merge its UK operations with Milk Link. The Westbury facility started producing Anchor butter for Arla in the autumn of 2012.
Canadean's "Arla Foods Ingredients Group P/S: Ingredients - Company Profile & SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company...
Arla Foods aims to remain the leading player in dairy in Denmark. However, as growth potential in this market is limited, over the forecast period, the company will mainly focus on markets outside Eur...
In order to maximise the milk price given to its farmers/owners, Arla is expected to seek new high- margin niches in dairy while increasingly producing private label goods in staple categories....
Better for you packaged food declined by 2% in current retail value terms in 2015. The reason is that the large reduced fat dairy category is seen as unnatural....
- Comment: Premier has more to ponder than Brexit
- Trump seen as negative for global food trade
- 2017: food policy hotspots in the UK, EU and US
- Analysis: B&G Foods balancing growth and decline
- The food market in 2017 - consumer trends and M&A
- Weetabix takeover talk gathers pace
- Unilever rebrands I Can't Believe It's Not Butter
- Nestle mum on Mead Johnson takeover talk
- Boparan confirms interest in Fox's Biscuits
- Update - Pladis not bidding for Weetabix