Arla Foods has purchased the 25% stake that it did not already own in its Russian joint venture, Arla Foods Artis, bringing full control of the Russian business into the hands of the Danish dairy giant.
While the acquisition makes the Russian company a wholly-owned subsidiary of Arla, the group said that former owner Mike Lyasko would continue to head up the unit.
The move comes as part of Arla’s strategy to expand international sales under its Strategy 2017. The group is looking to boost its presence in high-growth emerging markets in response to the expected impact that the end of EU milk quotas will have on supply and sluggish demand for dairy products in mature European markets.
Arla has indicated that Russia is one of its three priority markets for expansion. The group said today (2 May) that it is targetting a threefold increase in Russian revenue by 2017, up from the DKK600m (US$105.69) that the company generates in the country currently.
Source: Just-Foods