FDBusiness.com

Arla Foods to Acquire Yeo Valley Dairies in the UK

 Breaking News
  • Discovery, Plant-Based and Alternatives Lead the Top Ten Trends For 2019 Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019. The connected world has led consumers of all ages to become more knowledgeable of other cultures, contributing to 35 percent growth of “discovery” claims, when comparing 2017 and 2016 new product launch [...]...
  • Pearse Lyons Brewery to Open New Facility at Historic Irish Site Alltech Beverage Division Ireland (ABDI) has made an announcement about the planned opening of a new brewery at the historic site of the old MacArdle Moore Brewery in Dundalk. The new Pearse Lyons Brewery will incorporate the relocation of the Station Works Brewery in Newry, which was acquired by the late Dr. Pearse Lyons in [...]...
  • WRAP Comes Up With Winning Formula to Tackle Milk Waste A new report from the UK’s leading sustainability experts WRAP shows for the first time the scale of milk wastes across the food chain, from processing to our homes, and highlights ways we can significantly reduce the 330,000 tonnes of total milk lost each year, worth more than £150 million. Milk waste in the home is [...]...
  • Samworth Brothers Launches New Fitness-focused Ready Meal Range With Innovative Identity by Brandon Leading British food manufacturer Samworth Brothers is launching a ground-breaking range of ready meals to appeal to everyday athletes, with brand identity and packaging by design consultancy Brandon. Responding to an increasing consumer demand for healthier convenience options, the meals, which come in three variants – Cajun Chicken, Turmeric Chicken and Pad Thai Chicken – are [...]...
  • Premier Foods Shows Resilience Premier Foods has reported a 1.3% increase in group revenue to £358.0 million and a 6.2% rise in trading profit to £51.0 million for the 26 weeks ended 29 September 2018. The group’s largest brand, Mr Kipling, was key to this growth following an excellent consumer response to its relaunch in the UK with revenues [...]...

Arla Foods to Acquire Yeo Valley Dairies in the UK

Arla Foods to Acquire Yeo Valley Dairies in the UK
February 09
10:26 2018

Arla Foods will acquire Yeo Valley Dairies, a subsidiary of the Yeo Valley Group. The transaction will give the farmer-owned dairy co-operative the rights to use the Yeo Valley brand in milk, butter, spreads and cheese under an intellectual property licence with Yeo Valley.

The Yeo Valley yogurt, ice cream, cream and desserts business will continue to be run independently through Yeo Valley Group, which remains under the ownership of the Mead family.

Tomas Pietrangeli (pictured), managing director of Arla Foods UK, says: “The potential for future investment in range through this licensing agreement with Yeo Valley provides a significant opportunity to offer a greater choice to consumers at attractive prices. Our ambition is to encourage customers to trade up from standard to organic milk, butter and cheese, driving overall growth for organic across dairy categories.”

With one in four households now purchasing organic products, there is opportunity for the dairy sector to convert more of its customers from standard to organic dairy. To fuel this growth and meet the growing needs of consumers requires investment in innovation and range and under both the Yeo Valley brand and Arla brand.

Tomas Pietrangeli continues: “Arla Organic Free Range milk has driven 60 per cent of all the growth within the organic milk category in the last 12 months, with 70 per cent of all Arla Organic Free Range milk sales attributable to customers who would have not previously purchased organic milk. Through the licence to use the Yeo Valley brand, we believe that we can further drive organic penetration of the milk market.”

The announcement is a milestone in the journey of Yeo Valley and organic dairy in the UK. Tim Mead, organic farmer and custodian of the family business comments: “Arla’s farmer-owned credentials are aligned to the values and ethos that the Yeo Valley brand is based on – ‘Supporting British Family Farms’. We have a long-held ambition to grow organic dairy in the UK, because at Yeo Valley, we believe that organic dairy is better for the planet, for the cows and for health.”

Currently in the UK, only four per cent of milk sold in the fresh milk market is organic, which compares with far greater shares of organic in the milk market in Germany (10 per cent), Sweden (16 per cent) and Denmark (29 per cent).

“This is a great chance for us to catch up with our European neighbours” adds Tomas Pietrangeli continues: “Organic milk has a key role to play as consumers increasingly look for ways to make their diets healthier. Its production without the use of artificial or manufactured herbicides and fertilisers and with high standards of animal welfare are key reasons it is in growth, especially with younger consumers. Arla is working with industry bodies to continue to help consumers understand the additional benefits that come with organic milk.”

The agreement means that Yeo Valley will be well placed to continue its focus on strengthening its core business of yogurt, desserts and ice cream whilst remaining independent and family-owned.

Completion of the transaction will take place following merger approval by the UK Competition and Markets Authority.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements