Arla to take control of Falbygdens Ost in April

THE Swedish Competition Authority has recently approved Arla's acquisition of cheese producer, Falbygdens Ost from the food company Atria.

Arla will take over company operations beginning 1 April 2015. With integration work now expected to proceed from the planning phase to implementation, negotiations with local union organizations can be completed.

The acquisition, which is in line with Arla's strategic commitment to develop the premium cheese segment, was announced in mid-October last year.

(Photo courtesy of Arla)

Alex Racoveanu, senior integration manager, will oversee the integration of Falbygdens Ost into Arla, which is expected to be completed within a year. He will work with a team consisting of representatives from the Supply Chain, Commercial, IT, HR, and Communication departments.

Falbygdens Ost runs operations in Falköping, where it matures and processes cheese through techniques including flavouring and packaging. The acquisition will add about 100 new employees to the Arla workforce, but their exact position will depend on union negotiations.

Mr Racoveanu said, "We have a big, but exciting task ahead of us. For example, all processes-from initial order to final delivery-have to be brought together in the shared systems. And in everything we do, our ultimate aim is to become our customers' first choice in the premium cheese segment. It is sure to be a lot of fun."

According to Henri de Sauvage, executive vice president for Arla in Sweden, "This is a good deal for customers, consumers and Arla's owners. The employees at Falbygdens Ost represent a proud tradition of cheese-making, and we are now in a position to work closely with them to develop passion and interest in cheese among customers and consumers alike. Falbygdens Ost is a strategic complement to Arla's own cheese-making business, and the purchase ensures profitable milk sales for our owners-the Arla farmers."