Arla Foods has said its planned entry into Dutch fresh milk market will further the group’s ambition to drive growth across northern Europe.
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The dairy giant announced this morning (11 March) that it has reached an agreement with FrieslandCampina to acquire the liquid milk activities of Friesland Foods Fresh Nijkerk.
“There is a one-time opportunity to acquire a considerable part of the liquid milk business in the Netherlands,” a spokesperson for Danish dairy cooperative told just-food.
Friesland Foods Fresh in Nijkerk makes products including milk, natural and fruit-flavoured yoghurt and porridge, as well as the Milk&Fruit and Breaker brands. The business generated revenue of around EUR215m (US$274.2m) in 2007.
Under the agreement, Arla would acquire the Breaker, Milk&Fruit and Melkunie brands along with a ten-year licensing agreement to use the Friesche Vlag brand for fresh dairy products in the Netherlands.
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By GlobalDataArla CEO Peder Tuborgh described the move as “a very important step” which makes “the Netherlands a new core market for our company”.
Arla has targeted Northern Europe as an important growth region, the spokesperson said.
While the acquisition has focused Arla’s expansion efforts on the Netherlands, the spokesperson said that the company was intent on growing the business in other countries, including Germany.
“At the moment we are focusing very much on the Dutch market. What will happen in the future with our ambitions for Germany and the Netherlands is not easy to say.”
