INDONESIA – Arla Foods has established a joint venture with one of the leading fast-moving consumer goods companies and dairy players in Indonesia, PT Indofood CBP Sukses Makmur Tbk (ICBP).
According to the company, this venture is a big step towards building its business in the region considering Southeast Asia as a strategic growth region in line with Arla Foods’ strategy, Good Growth 2020.
The newly signed joint venture, which came in a bid to strengthen the company’s business in Southeast Asia is expected 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 Tim Orting Jorgensen, Executive Vice President of Arla Foods’ international business.
“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,” said Axton Salim, the Director of ICBP.
Indonesia is sited as the biggest market for nutritious dairy products in Southeast Asia having a large population estimated at 250 million, 50% of them under the age of 30.
“Indonesia is an important market for anyone who wants to 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 CBP and to launch more of our products to the market in the future,” added Tim Orting Jorgensen.
The joint venture involved a shareholding composition of 50% plus 1 share of the company to be owned by Arla Foods and 50% minus 1 share by ICBP.
The new joint venture company, Arla Indofood Sukses Makmur, had the mandate to handle sales, distribution and production of dairy products.