Danish-Swedish dairy group Arla Foods has said it has sold its Cremo business to Ireland’s Kerry Group for an undisclosed sum.

Cremo, based at Glamsberg in Funen, Denmark, produces and markets food ingredients and flavourings for application in the prepared foods, bakery, ready meals and snack sectors, Arla said.

MD Foods, which merged with Arla in 2000, bought into Cremo in 1989 and acquired full ownership in 1993.

“We were facing a situation where we either had to be a part of the industry’s further consolidation or dispose of the company,” said Henrik Andersen, sales director at Arla Foods Ingredients. “The approach from Kerry Ingredients was unexpected, but the offer was such that we decided to sell.”