International dairy cooperative Arla Foods is forming a joint venture with Indonesia’s PT Indofood CBP Sukses Makmur Tbk (ICBP) to expand its presence in the Indonesian market.
The Denmark-headquartered company would control 50% of Arla Indofood Sukses Makmur (plus one share) while ICBP would control 50% (minus one share), a World Grain report said.
“We are pleased to enter into a partnership with ICBP, which has strong experience with dairy and has an extensive FMCG distribution network in Indonesia, with access and relationships to all key retailers,” said Tim Ørting Jørgensen, executive vice-president of international business at Arla Foods.
“Teaming up with ICBP will allow us to offer our high-quality dairy products to more Indonesian consumers.”
Arla Foods is the fourth largest dairy company in the world with respect to milk volume, and seventh with respect to turnover, according to Reuters.
It owns the Lurpak and Anchor brands of butter and spreads, Arla milk and Castello cheeses.
ICBP is a leading player in the consumer branded products sector in Indonesia, with operations in dairy products (including milk, ice cream and butter), noodles, snack foods, food seasonings, nutrition and special foods and beverages. It also operates a packaging business, producing both flexible and corrugated packaging to support its main businesses.
ICBP director Axton Salim said the joint venture would give the company access to “a strong innovation and research platform”.