Arla forms new JV with ICBP in Indonesia

Global dairy company Arla Foods has entered a joint venture (JV) with Indonesian fast-moving consumer goods (FMCG) and dairy company PT Indofood CBP Sukses Makmur Tbk (ICBP) in South-East Asia.

The new JV with ICBP is set to expand Arla’s presence in the Indonesian market and is reported to be in line with Arla’s Good Growth 2020 strategy in the Southeast Asia region.

As per the terms of the deal, Arla Foods will hold 50% plus one share in the JV company, while ICBP will own 50% minus one share.

Arla Foods international business executive vice-president Tim Ørting Jørgensen said: “We are pleased to enter into a partnership with ICBP who has strong experience with dairy and has an extensive FMCG distribution network in Indonesia with access and relationships to all key retailers.

“Teaming up with ICBP will allow us to offer our high-quality dairy products to more Indonesian consumers.”

The JV firm called Arla Indofood Sukses Makmur will be engaged in sales, distribution and production of dairy products.

ICBP director Axton Salim said: “We are pleased to have the opportunity to team up with Arla Foods, one of the strongest dairy companies in the world with a strong innovation and research platform.

“Arla is also one of the leading global brands associated with European quality. This collaboration will complement our existing dairy business in Indonesia.”