Arla Foods is to set up an Asian unit in Kuala Lumpur as the dairy group looks to “accelerate” the growth of its business in the region.
The new division will draw up Arla’s strategy for its retail and foodservice operations in Asia. It will cover the Chinese retail market through Arla’s partnership with local dairy processor Mengniu. The two companies import powdered milk, cheese and UHT milk from Europe. Arla also has a stake in the business.
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Operations in six other markets, including Indonesia, Myanmar and Japan, will be run out of Kuala Lumpur.
“In close co-operation with our partner Mengniu, we have developed our market in China. We have gained important experience and insight, which will be levers to accelerate our expansion in Asia. We have strengthened our presence in several south-east Asia countries and it’s time to move the senior management and main leadership functions to the region,” Finn Hansen, the head of Arla’s international consumer business, said.
Jesper Colding, vice president for marketing at Mengniu, will lead the new unit. Colding joined Mengniu in 2012 after Arla became a shareholder in the Chinese firm. “Asia holds so much potential. There is a growing affluence among people and they are becoming increasingly aware of the importance of good health and choice of nutrition,” Colding said.
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