Arla, the Danish dairy giant, has announced the acquisition of Mondelez’s processed cheese business in the Middle East region, which is currently licensed under the Kraft brand.
Arla said the deal was set to significantly strengthen its position in the Middle East and North Africa, giving access to new product categories, new markets and a state-of-the-art production site.
The company said that, up till now, most of its products sold in the MENA region have been produced in Europe, but with Arla’s capacity nearly maximized for processed cheese, the deal would deliver much-needed capacity and a a strong regional supply chain footprint o secure long-term competitiveness in the region through scale and efficiency.
Commenting on the deal, Arla CEO Peder Tuborgh said: “This acquisition is a gamechanger for our MENA business. We have an established and growing business in the Middle East and know our consumers and customers well in this part of the world. As such, 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”.