Arla Foods buys Cocio, expands UK organic segment

Arla Foods has acquired the remaining shares in Danish flavoured milk company Cocio Chokolademilk, in which it already holds a 50% stake. As well as Denmark, Cocio Chokolademilk exports to the Nordic area, Germany, the UK, US and other European markets. Annual turnover totals approx 200 million DKK (€26m).

The acquisition is set to strengthen Arla Foods’ activities within the flavoured milk segment, which is currently growing at a rate of 5-6% per annum.

“We’re pleased to have acquired the remaining shares in Cocio. As sole owners of the business, we will have a stronger position for co-ordinating our operations within the existing flavoured milk categories, which are areas on which we want to focus more strategically. Our intention is for Cocio to continue along the same lines as today, but the new structure will allow for better utilisation of skills and the creation of new synergies,” says Arla Foods’ vice CEO Povl Krogsgaard. The acquisition took effect on January 1, 2008. The purchase price has not been disclosed.

In the UK, Arla Foods is launching an organic alternative for its leading spread brand. Lurpak Organic Spreadable was launched in the UK in January before a possible rollout of the product further across Europe.

The company says that extending the Lurpak range, which is currently the UK’s best selling butter, spreads and margarine brand, reflects the high level of potential growth for organic dairy goods in general.

Lurpak brand manager Jessica Hardcastle says there is a gap in the current market for butters, spreads and margarines, which the brand can fill: “[Spread’s] share of the total organic market is considerably lower than that of organic milk and we believe that this offers an opportunity for a product, such as Lurpak Organic Spreadable, to take ownership of the category,” she states.