Arla has announced that it is to establish a new division called Business Unit Asia to integrate its business in China and East Asia.
The company said that it had identified China as a strategic growth market, while South East Asia had been identified as a region which could potentially become a new strategic growth market.
Arla said that its expectation was that revenue for the region would exceed €1 billion within the next five years, adding that consumer needs in China and SEA had many similarities and therefore possible synergies within brand and product portfolio, marketing and innovation.
The new Business Unit Asia management is to be based in a regional office in Kuala Lumpur and will set the strategy for all retail and food service activities in Asia. The unit will cover the Chinese retail sales through the partnership with Mengniu Dairy China as well as the SEA market, the company said.