FDBusiness.com

Arla Foods to Strengthen Partnership in Brazil

 Breaking News
  • Nestlé UK Launches New On-trend Flavours Nestlé has introduced two new on-trend flavours to its much-loved Munchies brand in the UK and Ireland. Available in 101g sharing bags, new Munchies Chocolate Fudge Brownie and Munchies Cookie Dough are the first new Munchies products since 1996. The new flavours were created at Nestlé’s confectionery sites in York and Fawdon, Newcastle. Munchies Brand Manager [...]...
  • Dedicated Industry Forums Take on Packaging’s Hottest Topics Experts from major brands, such as Coca-Cola, Ella’s Kitchen and REN Clean Skincare, will take to the stage as part of the dedicated industry forums for the beauty, food and drink sectors at Packaging Innovations and Luxury Packaging London 2019. The show, which returns to Olympia on 11 & 12 September, will tackle the key subjects [...]...
  • Greene King Being Sold For £2.7 Billion CK Asset, which is one of the largest property developers in Hong Kong and an international investment group, has made a recommended £2.7 billion cash offer for Greene King, the UK’s leading integrated brewer and pub retailer operating over 2,700 pubs, restaurants and hotels across England, Wales and Scotland. Including debt, the enterprise value of [...]...
  • The Hershey Company Takes Minority Stake in Irish Snacking Brand The Hershey Company, the US-based food group, has made a minority investment in Fulfil Holdings, the owner of the snacking brand FULFIL. Headquartered in Dublin, Ireland, FULFIL has rapidly grown since its inception, now outselling many traditional chocolate snack bar brands in the UK and Ireland and named a top 50 consumer brand in Ireland. Brian [...]...
  • UK Restaurant Numbers Drop Again as Consumer Tastes Shift Britain’s restaurant numbers have fallen for the sixth quarter in a row, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals. Independent operators have borne the brunt of the closures with group-owned restaurants proving more resilient despite some major brand failures. The quarterly survey of the country’s supply of licensed premises reports a 3.4% drop in [...]...

Arla Foods to Strengthen Partnership in Brazil

Arla Foods to Strengthen Partnership in Brazil
September 23
15:45 2014

Arla Foods is strengthening its presence in the Brazilian market by announcing a shared ownership with its longtime partner, Brazil’s largest dairy company, Vigor Alimentos. Since 1986, Arla has been in a 50/50 joint venture with Vigor under the name Dan Vigor. In 2013, Dan Vigor achieved gross revenue of €36 million.

Under the new agreement Arla will exchange the joint ownership of Dan Vigor for an eight per cent share ownership of Vigor, Brazil’s largest dairy company. Arla will become a voting member and an observer in Vigor’s Board of Directors.

“The new agreement with Vigor is similar to the one we have with Mengniu in China – only this time it hasn’t been necessary for us to find additional funding. Vigor is one of Brazil’s leading dairy producers with a first class distribution network. We have a history of excellent cooperation and it’s a natural step for us to further build on this partnership to explore the great potential in Brazil,” says Finn Hansen, Head of Arla’s international markets.

Latin America is a growth region, within which Arla has had a strategic focus over the past year. Brazil is not only the most significant market in the region, but also the world’s fourth largest dairy market with an overall annual growth of five per cent. With a population of 200 million and a growing middle class, Brazil holds significant dairy consumption potential. Arla’s ambition is to accelerate its export of products to Brazil to get a share of the growing demand for imported brands in the dairy market.

“Brazil is an attractive dairy market, especially within branded cheese and butter. Lurpak is the first Arla brand we are marketing in Brazil and test results are looking promising. We also launched feta, brie and camembert cheese. Together with Vigor, we see a great opportunity to create leading positions for our global brands Arla®, Lurpak® and Castello®,” says Steffen Ander-sen, who is responsible for Arla’s value markets.

Part of the agreement with Vigor is for Arla to drive the creation of a new business unit within its operation, with a new commercial executive officer. The unit’s focus will be on the marketing and sales of imported products and brands, which will be distributed through Vigor’s channels.

When the EU milk quotas are abolished in 2015 and milk production increases, Arla and other European international dairy companies will have to look to growth markets outside the EU. The agreement with Vigor will accelerate Arla’s export to Brazil over the coming years and in the long term contribute to the cooperative owner’s milk price.

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements