Arla Foods - History

History

The Swedish "Arla ekonomisk förening" and the "Danish MD Foods" became one company, "Arla Foods amba" in 2000. The two dairy companies share a similar history:

History of Arla Foods in Sweden from 1881 to 1999

1881: The first co-operative dairy is established at Stora Arla Gård in Västmanland under the name of Arla Mejeriförening.

1915: Arla’s history begins when Landtmännens Mjölkförsäljningsförening is formed. The name is later changed to Mjölkcentralen (MC). Subsequent years see a substantial number of larger and smaller dairies merging with Mjölkcentralen and in connection with a number of mergers in the early 1970s, it is proposed that the company should have a new, common name.

1945: Mjölkcentralen acquires NEN’s village dairies.

1949: The MC cow, designed by Mjölkcentralen’s ad-man, Karl Thunberg, is registered as a trademark

1959: The dairy associations in the county of Skaraborg merge with Mjölkcentralen.

1971: Mjölkcentralen amalgamates with Lantbrukarnas Mjölkcentralen in Gothenburg, Sydöstmejerier and the Őrebro area’s dairy association begins.

1974: Registration of the name Mjölkcentralen Arla.

1975: Mjölkcentralen changes name to Arla and acquires its new logo: the Arla Cow.

1992: Arla takes a stake in the Copenhagen-based dairy, Enigheden, owned by Kløver Mælk of Denmark.

1999: Arla has 65% of the Swedish milk production.

History of Arla Foods in Denmark from 1882 to 1999

1882: The first co-operative in Denmark is established in Hjedding. In the following decades, the number of co-operative dairies rises dramatically.

1945: There are 1,650 co-operative dairies in Denmark

1963: The concept of a nationwide dairy is aired for the first time.

1970: Mejeriselskabet Danmark (MD) is established on October 1 by four dairy companies and three individual dairies. The company starts out with a milk volume of 384 million kg.

1970s and 1980s: Various dairies and dairy companies across Denmark join Mejeriselskabet Denmark through mergers or acquisitions.

1978/79: The volume of milk exceeds 1 billion kg for the first time.

1988: The company changes name to the more international MD Foods.

1989: MD Foods International A/S is formed for the purpose of acquiring dairies abroad.

1990: MD Foods International acquires the UK’s fifth largest dairy company, Associated Fresh Foods.

1992: MD Foods and Denmark’s second largest dairy company, Kløver Mælk, sign a financially binding cooperation agreement. MD Foods International makes further acquisitions in the UK.

1996: There are 15 cooperative dairies left in Denmark, including MD Foods.

1999: MD Foods and Kløver Mælk merge to become MD Foods, gaining 90% of the Danish milk production.

Arla Foods' history from 2000 and forward

The two companies behind Arla Foods amba, is the Danish MD Foods and the Swedish Arla

The founding of Arla Foods

1995: MD Foods and Arla begin to co-operate

1999: Plans for a merger between Arla and MD Foods take shape and during the au-tumn, the owners – the cooperative members, agree to the proposal and MD Foods and Arla announce their merger.

2000: Arla Foods amba is formed on April 17

2001: On June 27, Arla Foods publishes a new five-year strategy plan which means the closure of 17 dairies in Denmark and Sweden and the redundancies of approx. 1,000 people.

2002: The cooperative members in Hellevad Omegns Andelsmejeri agree (63 votes for and 50 against) to a merger with Arla Foods with effect from 30 September 2002.

2004: On 2 November, Arla Foods’ Canadian subsidiary agrees to buy the Canadian cheese importer and producer, National Cheese Company Ltd.

2005: The planned merger between Arla Foods and the Dutch Campina break down in April and Arla’s CEO Åke Modig leaves the company. Peder Tuborgh is appointed CEO in June.

2005: On August 26, Arla Foods and the Chinese dairy company, China Mengniu Dairy Company, begin a partnership for the production of milk powder in the Chinese market.

2006: On January 27, Arla Foods buys the speciality dairy, White Clover Dairy in Wisconsin, USA. The purchase of Wisconsin-based White Clover Dairy, a company with 170 employees, on 26 January 2006, provided direct access to the U.S. market (White Clover had produced Arla products under license since 1998).

2006: On June 26, Arla Foods announces the purchase of the privately owned dairy Tholstrup Cheese. The purchase gives impetus to Arla Foods’ strategy to strengthen its international brands.

2006: On November 8, Arla Foods announces the purchase of 30 per cent of the shares in the Finnish dairy company, Ingman Foods Oy Ab. The purchase is approved by the EU on January 16, 2007.

2007: On March 27, Arla Foods merges with Express Dairies in the UK. The merger creates the UK’s leading supplier of dairy products under the name of Arla Foods UK plc.

2008: Production from the Swedish fruit juice factory in Alingsås is relocated to Rynkeby Foods in Ringe during the first half of 2008.

2008: On January 8, Arla Foods acquires the remaining 50 per cent of the shares in Cocio Chokolademælk A/S.

2008: UK farmers become part-owners of Arla Foods UK. To give the British farmers in the supplier group, Arla Foods Milk Partnership (AFMP) joint ownership of Arla Foods’ UK subsidiary, Arla Foods UK, 10,000 Swedish, Danish and UK milk producers unite in a new joint venture which, from May 14, 2008, holds 7 per cent of Arla Foods UK.

2008: On July 1, Arla Foods acquires Borup Andelsmejeri in North Zealand.

2008: Arla Foods acquires the remaining 70 per cent of the shares in the Finnish Arla Ingman Oy AB which becomes a fully owned subsidiary.

2009: Hirtshals Co-operative Dairy joins Arla

2009: Authorities approve: Arla Foods to buy Fresh Nijkerk from FrieslandCampina

2011: Authorities approve: Arla Foods merger with German dairy company Hansa Milch

2011: Arla dairy swallows the German dairy Allgäuer-Käsereien GmbH, raising it to the seventh-largest dairy company in Germany. Later the German market is being upgraded; Germany and the Netherlands get to the Arla Consumer Germany & Netherlands a separate business unit.

2012: Arla Foods merges with Milch-Union Hocheifel in Germany, and Milk Link in Great Britain.

History of Arla Foods Ingredients

The first pilot production of whey proteins took place in 1976 in the cellar of HOCO milk powder plant in Holstebro, Denmark. Arla Foods Ingredients – initially called Danmark Protein – was established soon after.

Four years later, the company inaugurated the world’s largest factory for the production of whey protein concentrate and lactose.

In 1994, MD Foods acquired Danmark Protein, which then became part of MD Foods Ingredients, the division responsible for sales of milk powder. The division’s name changed to Arla Foods Ingredients when Arla and MD Foods merged in 2000.

A joint venture agreement with SanCor, one of the largest dairy companies in South America, resulted in the construction of a second production plant in Argentina in 2002.

In 2011, a joint venture agreement with the German dairy company DMK marked the launch of an investment plan to expand capacity at Arla Foods Ingredients’ whey processing plant in Denmark and establish a new whey processing plant in Germany.