Arla Foods acquires Fonterra’s stake in joint venture

Following a decision by Fonterra to dispose of its minority interest in a joint venture with Arla Foods amba, Arla, the majority stakeholder, has acquired the 25 per cent share that it did not already own.

Arla Foods now has a licence giving it full rights to the Anchor brand for all dairy categories in the UK and for packet butter and aerosol cream in Europe. An agreement has also been put in place for Arla to be supplied with Fonterra bulk butter, for the Anchor brand and own label products in the UK.

Commenting on the decision, Arla Foods UK chief executive, Peter Lauritzen, comments: “Anchor is a very strong, successful, brand in the UK and it is a good business in which to invest. The butter, spreads and margarine market is a key category for Arla and this is a logical step for us to take this brand forward and develop it further in the UK.”

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.