Arla Foods’ acquisition of Tholstrup Cheese marks a further step in Arla’s strategy for strengthening the Group’s international brands.

The Danish Tholstrup family and the company behind such well-known cheese brands as Castello and Saga, have decided to sell the business in view of the fact that it does not possess the necessary resources to develop its speciality cheese market further.

“It’s a good solution both for the family and for the company that Arla Foods is to take over Tholstrup,” says Finn Schiøtt Hansen, Managing Director, Tholstrup Cheese Holding A/S. “Arla is ideally suited to develop our brands.”

The acquisition is conditional upon approval from the competition authorities in the countries affected.

With a turnover of approx. DKK 830 million within the mould and cream cheese segment, Tholstrup Cheese is primarily sold in Germany, the Nordic countries and North America. 82 % of the company’s products are exported.

Over the past five years, Arla Foods has invested several hundred million kroner in increasing its production of cream cheese, mould cheese, feta and mozzarella for the international market. Most recently, Arla Foods has expanded its production of blue-mould cheese at the Høgelund dairy in Denmark.
Tholstrup Cheese’s decision to offer itself for sale provided Arla Foods with new opportunities for building stronger brands for the Group’s cheeses for international markets and extending its current range of mould cheeses.

This is in line with Arla Foods’ stated strategy of strengthening its brands in global markets through the prioritisation of focus brands.

”Brands such as Castello and Saga have built solid positions in several markets,” commented Arla Foods’ Managing Director Peder Tuborgh. ”Through our marketing and presence in the most important markets, we can give these strong quality brands a further lift.”

The market for speciality cheese is dominated by brands and the major suppliers of speciality cheese are currently competing for buying brands that, like Castello and Saga, have the potential to maintain and expand their market share.

Arla Foods will take over Tholstrup Cheese for an undisclosed purchase sum once the competition authorities’ approval is in place. Tholstrup employs a workforce of approx. 500, including approx. 450 in Denmark and produces 17,400 tons cheese and 6,200 tons pasta. Tholstrup operates five production plants in Denmark, i.e. three cheese dairies and two pasta plants. Tholstrup Cheese also owns a cheese production plant in Michigan in the US.

Arla Foods will maintain the current production while undertaking an analysis of its general cream and mould cheese production aimed at optimising capacity and know-how in Denmark and the US.

For further information, please contact:
Peder Tuborgh, Managing Director,
Arla Foods, 45 89 38 10 00
 



Finn Schiøtt Hansen, Manging Director,
Tholstrup Cheese Holding A/S, 45 75 56 28 22
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Also read: Arla acquires the Danish dairy, Tholstrup Cheese