Dairy giant Arla Foods has announced that it is set to acquire Mondeléz International’s processed cheese business, licensed under the brand 'Kraft', in the Middle East and North Africa (MENA).
The move will consolidate Arla’s position in the Middle Eastern and North African markets by opening up access to new markets, and product categories.
As a part of the agreement, Arla will also gain full ownership of a state-of-the-art cheese production site in Bahrain, enabling it to expand the company’s branded cheese production in the region.
An Excellent Fit
Arla CEO, Peder Tuborgh, said, “This acquisition is a game changer 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.”
A Strategic Deal
Mondelēz International aims to focus on faster-growing snacks categories, including its core offerings comprising chocolate, biscuits, and gum and candy, as a part of the company's newly-announced strategic plan to drive top-line growth, and generate attractive returns.
EVP and president of Mondelēz International for Asia Pacific, Middle East, and Africa (AMEA), Maurizio Brusadelli, said, “Our talented teams have been instrumental to the success of our Cheese business in this region and I am confident that they will continue contributing their significant expertise under new owners.
“The time is right for the brand to take the next step in its journey and we are very happy to hand over this successful business to Arla Foods.”
The financial details of the deal have not been disclosed.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.