Arla acquires Middle East and Africa Kraft branded cheese business
Agreement with American multinational company Mondeléz International
Giving access to new product categories, new markets and a state-of-the-art production site
European dairy cooperative Arla Food has reached an agreement with American multinational confectionery, food and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. The acquisition also gives a full ownership of a cheese production site in Bahrain, which provides an opportunity to further expand the company's branded cheese production in the region. The Middle East and North Africa (Mena) is one of the key regions in Arla's strategy, Good Growth 2020. Since 2010 Arla has more than doubled its sales organically across the Middle East & North Africa (Mena), which is the largest company market outside Europe, through strong positions in cheese under the Puck brand, butter under the Lurpak brand as well as milk powder and UHF milk under the Dano and Arla brands. The company expects its retail and food service in Mena to reach approx. eur 560 million this year. "This acquisition is a gamechanger for our Mena business. We have an established business in the Middle East. "As Arla ceo Peder Tuborgh ," says Arla ceo Peder Tuborgh , "how do we grow up?" . Until now, most of Arla 's products sold in the Mena region have been produced in Europe, with some local production also placed in Riyadh, Saudi Arabia. However, this is an increase in demand for the long-term competitiveness of the region. The production site is located in Manama, Bahrain and has a capacity exceeding 66,000 tons. Built in 2008, it includes an on-site innovation pilot plant and has won multiple awards for manufacturing excellence within core cheese categories. By May 2019 The deal is expected to take effect.
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