March 10, 2015


Arla Foods enters joint venture in Australia

Press Release




Earlier this year, Arla Foods has entered a joint venture with Australia's largest cheese importer, F. Mayer Imports, as part of the former's expansion efforts in the country.


The joint venture, called 'Arla Foods Mayer Australia Pty Ltd', is due to take effect on May 4, 2015, with Arla owning a 51% share of F. Mayer, the company's preferred distributor in Australia for the last 30 years.


The partnership will help Arla build on decades of success 'Down Under' for its specialty cheese brand, Castello, at a time when Australians are craving quality, culture and artisan cheese, the company's press release said. It will also contain all of Arla's current and future businesses in the country.


The joint venture will market, sell, and distribute imported and local dairy specialty products to the Australian market. These include Castello® cheese, Lurpak® butter and various high-quality Arla® products.


In addition, the portfolio will also include specialty dairy products from third-party producers in Europe and Australia via F. Mayer.


With more than 23 million consumers in Australia, Arla feels it is able to contribute to the demand for high-quality food.


"Although the overall Australian dairy market is only seeing low growth rates, the market for specialty cheese is lively and growing", said Lars Eggers, who will become the general manager of the joint venture.


"Australians want to be inspired by quality food, including artisan cheese, and the focus on food inspiration and a rich food culture is clearly on the rise. We believe we have the products to tap into that movement".


With the joint venture, Arla Foods aims to take its annual revenue in Australia from the current US$29 million to US$145.1 million by 2020.

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