Arla acquires the Danish dairy, Tholstrup Cheese
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- 2 min
- 26 June 2006
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Castello poised to become the driver in the mould cheese segment
Arla has acquired the Denmark-based dairy company, Tholstrup Cheese, which produces high quality cream and mould cheese in Denmark, and Michigan in the US. The move supports Arla’s international strategy aimed at securing Arla’s position as international market leader within the field of speciality cheese by focusing on strong brands. 80% of Tholstrup’s sales derives from exports, and its international brand, Castello, is well placed to become Arla’s leading brand within mould cheese.
CEO Peder Tuborgh, why did Arla take over Tholstrup?
”Because the opportunity arose. Tholstrup is a perfect match for our international strategy for speciality cheese. We’ve been lacking a broad, international range, and Tholstrup has strong brands as well as products of a high quality. The acquisition allows us to develop a strong strategy for speciality cheese, with Castello as the driving force.”
What will the acquisition mean for the dairies that produce cream and mould cheese?
”The acquisition is not intended to be at the cost of other areas. The key element is the opportunities inherent in amalgamating our businesses. Of course, there will always be synergy effects, but we’ll not start looking for these until the competition authorities have examined the acquisition.”
Tholstrup’s Castello and Saga are two strong brands. What will be the consequences for Arla’s Høng, Rosenborg and Kvibille brands?
”I don’t know yet. Those responsible in Arla will look into this at the earliest opportunity. As I see it, Castello will be our primary brand. - the brand of the future. That said, this doesn’t mean that there’s no room for other brands in individual markets. A brand such as Høng has a historic value and is a strong brand in the Nordic countries. Kvibille is a strong brand in Sweden, so I can’t imagine that they’ll be discontinued.
How will the acquisition impact on Arla’s milk price?
”What has happened here is an excellent contribution to our strategy of focusing on added value as mould cheese is one of the products with the most added value. This will make a positive contribution to the milk price. If this hadn’t been the case, we wouldn’t have bought Tholstrup.”
What has Arla paid for Tholstrup?
”We don’t intend to disclose the price. But I can say that there is a good balance between the price we’re paying and the opportunities we’ll get.”
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.