Arla adds to Brazil’s Vigor

Arla is strengthening its presence in the Brazilian market with a shared ownership with its long time partner, Brazil’s largest dairy company, Vigor Alimentos

Since 1986, Arla has been in a 50/50 joint venture with Vigor under the name Dan Vigor. In 2013, Dan Vigor made a gross revenue of €36 million. Under the new agreement Arla will exchange the joint ownership of Dan Vigor for an eight per cent share ownership of Vigor, Brazil’s largest dairy company. Arla will become a voting member and an observer in Vigor’s board of directors.

“The new agreement with Vigor is similar to the one we have with Mengniu in China – only this time it hasn’t been necessary for us to find additional funding. Vigor is one of Brazil’s leading dairy producers with a first class distribution network. We have a history of excellent cooperation and it’s a natural step for us to further build on this partnership to explore the great potential in Brazil,” says Finn Hansen, head of Arla’s international markets.

Brazil is not only the most significant market in the region, but also the world’s fourth largest dairy market with an overall annual growth of five per cent. With a population of 200 million and a growing middle class, Brazil holds significant dairy consumption potential. Arla’s ambition is to accelerate its export of products to Brazil to get a share of the growing demand for imported brands in the dairy market, the co-operative says.

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