Arla seeks expansion in Middle East with cheese deal

Dairy group Arla has signed a deal with food giant Kraft Heinz for a new brand license for the sale of cheese in the Middle East. This means that Arla will be allowed to sell cheese under the 'Kraft' brand in 12 Middle Eastern countries over the next 16 years.

The deal follows the acquisition of Mondeléz International's processed cheese business in the Middle East, the transaction of which was formally completed on Tuesday, May 28. That company was licensed to sell cheese products under the Kraft brand name. After several negotiations with Kraft Heinz, Arla Foods has now taken over this brand license.

Arla can now sell its cheese products under the Kraft name in Bahrain, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Mauritius, Oman, Palestine, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen and the Seychelles. For this, Arla has to pay royalties to Kraft. The terms of the deal have not been disclosed.

Making Cheese in Bahrain
The Scandinavian dairy cooperative also wants to further develop its own brand 'Puck' for cheese products in the Middle East. Through this acquisition, Arla has also become the owner of a modern cheese factory in Bahrain. It aims to expand in the Middle East and North Africa. In those areas, Arla's retail and foodservice revenues reached €560 million last year, a doubling since 2010.

Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

e.delijster@boerenbusiness. Nl

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