Arla Foods sells up to Belgium’s Vache Bleue

Arla Foods has sold its cheese factory in Bad Wörishofen to Belgian cheese trader Vache Bleue. The handover of the plant should be completed by the end of the first quarter of 2019.

Arla Foods has decided to take this step, as the production and distribution of the cheese specialties produced in Bad Wörishofen (production: 18,000 tons per year) are no longer in line with the strategic orientation of Arla’s stores in Germany and Europe, it says.

The transaction also includes the sale of all shares in the French cheese processor Martin Sengelé Produits Laitiers at Muhlbach-sur-Munster (production: 14,000 per year) to Vache Bleue.

Martin Sengelé Produits Laitiers is a wholly owned subsidiary of Arla Foods and, among other things, handles the packaging and packaging of the cheese specialities produced in Bad Wörishofen, primarily for distribution in France.

In addition, Arla Foods has reached agreement with the Allgäu milk supply groups in southern Germany that Arla Foods’ existing milk yield will be transferred to Vache Bleue.  In the spring of 2018, Arla Foods sold its Allgäu plant in Sonthofen to Allgäuer Hof-Milch.

Vache Bleue intends to produce cheese products for Arla until further notice, so that Arla can meet the current supply contracts with its retail customers.
In 2012 the present owners, David Parent and Free Vroome, acquired the cheese wholesaler Vache Bleue as part of Finnish Valio’s management buy-out. Since then Vache Bleue has expanded its brand business in its home market. Today, the company is the market leader in Belgium for grated cheese mixes and lactose-free dairy products under the Dilea brand.

The focus of the company, which has a strong presence in the Belgian retail sector, is still in sales and marketing. With the purchase of the cheese factory in Bad Wörishofen, Vache Bleue has for the first time in its history gone into cheese production. So far, the cheese specialist has generated annual sales of around €65 million.