The joint venture will be called Arla Indofood Sukses Makmur.
Arla Foods has entered into a joint venture with Indonesia’s PT Indofood CBP Sukses Makmur Tbk, with the aim of strengthening the brand’s presence in the Southeast Asian market.
The dairy co-operative will acquire the majority stake in the company, owning 50 per cent plus one share, while Indofood will own 50 per cent minus one share.
The joint venture will be called Arla Indofood Sukses Makmur. It will handle sales, distribution and production of dairy products, though the companies have not disclosed information regarding new products or production plans at this time.
Indofood’s current product portfolio includes various dairy products, instant noodles, food seasonings and pasta.
Arla is a European dairy cooperative with a global reach. It is owned by 12,000 dairy farmers, around 2,500 of whom are in the UK.
Southeast Asia is a strategic growth region in Arla Foods’ strategy, Good Growth 2020, and the company is now taking another step towards building its business in the region. The newly signed joint venture agreement with ICBP is set to expand Arla Foods’ presence in the Indonesian market.
