Dutch-based dairy group Campina has formed a joint venture with the Canadian company Vitalus in a bid to strengthen its presence in the North American functional and nutritional ingredients market.
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Campina said the 50/50 joint venture will enhance its critical mass, helping it to gain further penetration in these markets with dairy-based ingredients. The joint venture, to be known as DMV-Vitalus Ingredients NV, officially began trading on 10 August. It is expected to generate sales of EUR10m and will initially employ around 50 people.
“With this JV, Campina will improve its position in the international ingredients business and strengthen its presence in the important North American dairy ingredients market,” said Campina CEO Justin Sanders. “The market value is estimated at an impressive EUR4bn and showing annual growth rates of 3% to 4%.”
While ownership of the the joint venture will be 50/50, Campina will have management control, the Dutch company said.
Campina said that Vitalus would bring its range of specific dairy-based ingredients and US customer base to the joint venture, whereas DMV International, which is part of Campina’s Industrial Products Group, will provide sales, marketing and customer support throughout North America.
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By GlobalDataThe JV will focus on expanding the business with a portfolio of dairy protein specialties such as whey protein concentrates, which are used in food products and in infant and diet nutrition formulas.
