Arla Foods forms joint venture in Indonesia
Arla Foods has established a joint venture with PT Indofood CBP Sukses Makmur Tbk (ICBP), a leading consumer goods company and dairy player in Indonesia.
Arla Foods has established a joint venture with PT Indofood CBP Sukses Makmur Tbk (ICBP), a leading consumer goods company and dairy player in Indonesia. Named Arla Indofood Sukses Makmur, the new joint venture will handle sales, distribution, and production of dairy products. Arla Foods will own 50% plus one share of the newly formed company while ICBP will own the remaining 50% minus one share.
Southeast Asia is a strategic growth region in Arla Foods’ Good Growth 2020 strategy, and this joint venture will help the company expand its business in the Indonesian market. For ICBP, the venture will complement its existing dairy business in the country.
“We are pleased to enter into a partnership with ICBP who has strong experience with dairy and has an extensive FMCG [fast-moving consumer goods] distribution network in Indonesia with access and relationships to all key retailers,” said Tim Ørting Jørgensen, executive vice president of Arla Foods’ international business. “Teaming up with ICBP will allow us to offer our high-quality dairy products to more Indonesian consumers.”