Arla Foods, а Denmark-based dairy cooperative, has announced the acquisition of Mondelēz International’s processed cheese business in the Middle East region. According to Arla’s press release, financial terms of the agreement were not disclosed. The deal is expected to be closed by the end of May 2019.
Mondelēz’s Kraft-branded cheese business in the Middle East and Africa is a perfect target for Arla Foods as its development strategy plans for 50% of company’s growth to come from Europe and 50% from outside Europe (Middle East, China, Nigeria, USA, and Russia) by 2020. “This deal is an excellent strategic fit for us as it enables us to both expand our branded presence in the cheese category and secure the local production capacity, we have been looking for to continue to grow our business,” says Arla CEO Peder Tuborgh. Selling its Kraft-branded cheese business will enable Mondelez to focus on its newly-announced strategic plan to drive top-line growth and generate attractive returns, centered around three priorities: accelerate consumer-centric growth, drive operational excellence and build a winning growth culture.
Mondelēz International is a multinational confectionery, food, and beverage company, which delivers a broad range of high-quality snacks made with sustainable ingredients and packaging. “The time is right for the brand to take the next step in its journey and we are very happy to hand over this successful business to Arla Foods,” said Maurizio Brusadelli, Executive Vice President for Mondelēz International.
Arla Foods is a dairy products manufacturer owned by 11,200 farmers from Denmark and Northern Europe. Its family also consists of other well-known brands like Puck for dairy products, Lurpak for butter, as well as Dano and Arla for milk powder and UHT milk. Doubling its sales more than twice since 2010, the company is the world’s largest manufacturer of organic dairy products.