To fully explore the market potential of infant formula, Danish dairy giant Arla has found a new "teammate."
Yesterday, the company announced a strategic partnership with French dairy group Sodiaal, which will accelerate the global infant formula business of both sides for continuous expansion. In the future, Sodiaal will be responsible for the global production of Arla infant formula.
This means that Arla's infant formula business, including the Chinese market, falls within the scope of this strategic cooperation. Data shows that Sodiaal has rich experience in the production of infant formula and is also a key global company for core raw materials in infant formula.
Arla's vice president and head of China, Cheng Yue, said in an exclusive conversation with Foodinc that China is currently the largest and most potential market for Arla infant formula. After the new cooperation, Arla plans to increase its investment in the HMO (human milk oligosaccharide) sector in China.
"This cooperation will accelerate our layout in the Chinese market and further enhance the professionalism and strong supply chain of Arla's future infant products," Cheng said.
He pointed out to Foodinc that under the new cooperation model, Arla will continue to invest in channels and brands, while Sodiaal will provide more abundant production capacity and more efficient supply chains.
In addition to supply chain cooperation, Arla is also preparing to introduce more "advanced ammunition" to the Chinese market in pursuit of growth. Foodinc learned that the company's HMO infant formula is about to be launched first in Denmark and in cross-border e-commerce channels in China.