Arla enters into joint venture in Indonesia
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- 22 December 2017
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Arla Foods is set to strengthen its business in Southeast Asia by establishing a joint venture with PT Indofood CBP Sukses Makmur Tbk (“ICBP”), one of the leading fast-moving consumer goods companies and dairy players in Indonesia.
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.
“We are pleased to enter into a partnership with ICBP who has strong experience with dairy and has an extensive FMCG distribution network in Indonesia with access and relationships to all key retailers. Teaming up with ICBP will allow us to offer our high-quality dairy products to more Indonesian consumers,” says Executive Vice President of Arla Foods’ international business, Tim Ørting Jørgensen.
Axton Salim, the Director of ICBP, says: “We are pleased to have the opportunity to team up with Arla Foods, one of the strongest dairy companies in the world with a strong innovation and research platform. Arla is also one of the leading global brands associated with European quality This collaboration will complement our existing dairy business in Indonesia.”
Biggest market in Southeast Asia
With a population of more than 250 million people, 50 per cent of them under the age of 30, Indonesia is the biggest market for nutritious dairy products in Southeast Asia.
“Indonesia is an important market for anyone who wants succeed in Southeast Asia. Demand for dairy is growing, and we believe we can offer Indonesian consumers the dairy products they need as part of a healthy and balanced diet. We look forward to partner with Indofood CBP and to launch more of our products to the market in the future,” says Tim Ørting Jørgensen.
The new joint venture company is called Arla Indofood Sukses Makmur. The shareholding composition of the joint venture will be 50 per cent plus 1 share of the company to be owned by Arla Foods and 50 per cent minus 1 share by ICBP. The joint venture will handle sales, distribution and production of dairy products.
Details about product portfolio, production and launch dates will not be made public at this time.
About PT Indofood CBP Sukses Makmur Tbk
ICBP is an established and one of the market leading players in the consumer branded products sector. We are engaged in diverse business categories, including noodles, dairy, snack foods, food seasonings, nutrition and special foods, and beverages. In addition, ICBP also operates a packaging business, producing both flexible and corrugated packaging to support our main businesses.
We provide everyday solutions for consumers of all ages across market segments, with around 40 leading product brands. Many of these brands enjoy significant market positions in Indonesia, backed by decades of trust and loyalty from millions of consumers.
Majority of our products are available across the archipelago. Supported by our parent company’s extensive distribution network, we are able to meet the market demands in a timely and efficiently manner.
Our business operations are supported by more than 50 plants located in key areas across Indonesia. This enables us to be closer to market demand and ensure product freshness.
In addition, ICBP products are also present in more than 60 countries around the world.
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.