Danish dairy giant Arla puts juice subsidiary up for sale

The Danish dairy giant Arla announced on Thursday that it was looking for the right buyer to take over its juice subsidiary, Rynkeby Foods.

"In order to focus on our core business, Arla has, over the past two decades, sold off subsidiaries that do not have a direct link to dairy production," Arla vice CEO Povl Krogsgaard said.

He added that Arla had begun to approach potential buyers this week and would now go through the process of identifying the right buyer and best offer.

Founded in 1934, Rynkeby Foods is Scandinavia's largest juice and cordials producer with an annual output of more than 150 million liters of beverages for consumers primarily in Denmark and Sweden.

It has been fully owned by Arla Foods since 1998 and is the dairy producer's last remaining subsidiary that is not linked to milk.

Arla said it had spent the last four months analyzing the strategic options and potential for Rynkeby, and the management and board of directors had now concluded that "a full sale of the subsidiary is the best long-term strategic solution for both Arla and Rynkeby."

The sales process is expected to be completed by the end of the second quarter of 2016.

Headquartered in Ringe on the Danish island of Funen, Rynkeby Foods employs 208 employees and had a turnover of 150 million euros (163 million U.S. dollars) in 2014.

Arla is the world's sixth largest dairy company and largest supplier of organic dairy products. Its products are sold in more than 100 countries and it employs more than 18,000 employees worldwide. Endit