FDBusiness.com

The EU’s competition authorities have given the go-ahead for Arla Foods’ acquisition of Allgauland-Kasereien in Southern Germany. Allgauland-Kasereien will now become a member of the Arla Group after Allgauland’s milk producers gave the green light to the deal in September.

Allgauland-Kasereien has an annual turnover of Eur307.8 million and is supplied by 1,338 milk producers. It operates four production plants, primarily producing cheese and butter, and employs 306 people. The German business also has a 30% co-ownership of the whey joint venture Milei (70% owned by a Japanese partner), and owns 50% of Bergland (a joint venture with Bayernland).

Germany is one of Arla’s core markets. Indeed, the Danish co-operative aims to become one of Germany’s leading dairy companies. The first key step towards achieving this ambition was taken at the beginning of the year with the merger with the North German Hansa-Milch, which produces fresh products and butter. With the acquisition of Allgauland-Kasereien now in place, Arla will also be present in the southern part of Germany.

“We see important potential in Allgauland-Kasereien’s cheese production. They produce excellent speciality cheeses for which there is important international potential and it is for this reason that the dairy is of interest to Arla Foods. Some of their products will supplement the cheeses Arla already makes, among them the cheeses marketed under the House of Castello quality brand. We see great potential in Allgauland’s products and not only in Germany,” says Tim Orting Jorgensen, executive vice president in charge of Arla Foods’ international markets.