Danish dairy giant Arla sells juice subsidiary

The Danish dairy giant Arla has signed an agreement to sell its juice subsidiary Rynkeby Foods to German-based Eckes-Granini Group GmbH, it announced Thursday.

The transaction has been completed and takes effect immediately, Arla said in a statement.

Founded in 1934 but having been fully owned by Arla Foods since 1998, Rynkeby Foods is the largest manufacturer of juice and cordials in the Nordic region, selling more than 130 million litres of beverages for consumers primarily in Denmark, Sweden and Finland.

In November last year, Arla decided to put Rynkeby Foods up for sale in order to focus on core business.

"Rynkeby is the last remaining subsidiary in the Arla Group not linked to milk and we believe that the Rynkeby business will be better suited under the ownership of Eckes-Granini who can take the company to the next level in its future development," Arla vice CEO Povl Krogsgaard said.

As part of the agreement, the parties have agreed on a structure for the continuation of the current distribution set-up.

It however did not disclose further terms and conditions of the transaction.

Based in Nieder-Olm, Eckes-Granini Group GmbH is the leading company of branded fruit-based beverages in Europe, with 15 national organizations and about 1,500 employees, exporting to 70 countries.

While 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