Arla Foods strengthens SE Asia business with JV

9 Jan 2018

Arla Foods is set to strengthen its business in Southeast Asia by establishing a joint venture with Indonesian consumer and dairy goods company PT Indofood CBP Sukses Makmur Tbk.

Arla Foods strengthens SE Asia business with JV

Arla Foods is set to strengthen its business in Southeast Asia by establishing a joint venture with PT Indofood CBP Sukses Makmur Tbk (“ICBP”), who are said to be one of the leading fast-moving consumer goods companies and dairy players in Indonesia.

Southeast Asia is a strategic growth region in Arla Foods’ strategy, Good Growth 2020, and the company says it is now taking another step towards building its business in the region. The newly signed joint venture agreement with ICBP is set to expand Arla Foods’ presence in the Indonesian market.

“We are pleased to enter into a partnership with ICBP who has strong experience with dairy and has an extensive FMCG distribution network in Indonesia with access and relationships to all key retailers. Teaming up with ICBP will allow us to offer our high-quality dairy products to more Indonesian consumers,” said Executive Vice President of Arla Foods’ international business, Tim Ørting Jørgensen.

Axton Salim, the Director of ICBP, said: “We are pleased to have the opportunity to team up with Arla Foods, one of the strongest dairy companies in the world with a strong innovation and research platform. Arla is also one of the leading global brands associated with European quality. This collaboration will complement our existing dairy business in Indonesia.”

Arla notes that, with a population of more than 250 million people, 50 per cent of them under the age of 30, Indonesia is the biggest market for nutritious dairy products in Southeast Asia.

“Indonesia is an important market for anyone who wants succeed in Southeast Asia. Demand for dairy is growing, and we believe we can offer Indonesian consumers the dairy products they need as part of a healthy and balanced diet. We look forward to partner with Indofood and to launch more of our products to the market in the future,” said Jørgensen.

The new joint venture company is called Arla Indofood Sukses Makmur. The shareholding composition of the joint venture will be 50 per cent plus 1 share of the company to be owned by Arla Foods and 50 per cent minus 1 share by ICBP. The joint venture will handle sales, distribution and production of dairy products.