One year after the formation of Arla Foods and the New Zealand Fonterra’s joint venture, Fonterra’s UK plant in Swindon has been closed.

The move means that Arla Foods has now assumed responsibility for all packaging of New Zealand butter and blends. This will now take place at Varde Smørmejeri in Denmark and Arla Foods' dairy in Götene, Sweden. Of the total 35,000 tons which arrive from New Zealand in frozen blocks, Varde Butter Dairy will pack 25,000 tons butter under Fonterra’s Anchor brand. Götene will process 10,000 tons for three types of blended products.

Arla Foods has bought some production equipment from Swindon for Varde Butter Dairy. The remaining equipment and the buildings at Swindon have been put up for sale.

As part of the joint venture agreement, Arla Foods took over all sales and marketing operations for Anchor which is primarily sold in the UK market where Arla Foods recently initiated a largescale advertising campaign for the brand. At a cost of £7.2 million, the campaign comprises newspaper advertisements as well as TV commercials and covers Anchor butter and blended products as well as Cheddar cheese. The campaign will run over the next twelve months.