Arla Foods acquires White Clover Dairy in the US

The acquisition of the dairy will provide Arla with the capacity for future expansion at a time when access to locally produced speciality cheese is a natural part of Arla’s long-term strategy for the US.

30/01/06 Arla Foods takes over White Clover Dairy in Wisconsin, USA. White Clover Dairy has been producing havarti and feta for Arla Foods under a licence agreement since 1998. The acquisition of the dairy with its 170 employees will provide Arla with the capacity for future expansion at a time when access to locally produced speciality cheese is a natural part of Arla’s long-term strategy for the US. Local production of certain speciality cheese will complement Arla’s significant exports of Danish speciality cheese in the American market.

In many ways the move has similarities to the purchase of the Canadian speciality cheese producer, National Cheese Company, in November 2004.

By buying White Clover, Arla acquires production of added value edam and gouda, which is sold at a premium and, therefore, dovetails well with Arla’s current range, which comprises havarti, feta and Danish blue.

Although initially, production will amount to approx. 5,000 tons cheese, this can be increased to 15,000 tons, providing opportunities for production of other speciality cheeses.

Over the past 10 years, the speciality cheese market in the US has grown by 8% per year. For a number of years, Arla Foods has been pursuing a successful added value strategy in the US. Arla’s main market in the US is the retail sector, where the company is on course to achieving solid brand positions for Rosenborg, Dofino, Denmark’s Finest and Lurpak.

http://www.arlafoods.com/APPL/HJ/HJ202COM/HJ202D01.NSF/O/A4200FBCBDD7C078C1257102003223EB