Arla Foods Ingredients has extended its distribution partnership with the Brenntag Group.
This means that Brenntag will now be responsible for the distribution of Arla Foods Ingredients' portfolio of protein ingredients across Southeast Asia — specifically Vietnam, Thailand and Indonesia.
This follows the company's 2023 agreement with Zhongbai Xingye Food Technology, a Brenntag Group company, which thrust Arla into the ever-growing Chinese market.
Under the terms of the expanded agreement, Brenntag will distribute Arla's range of high-protein ingredients, spanning everything from health foods to infant and sports nutrition products, as well as functional dairy and bakery ingredients.
According to Arla Foods Ingredients, Vietnam, Thailand and Indonesia are currently the three largest and most lucrative Southeast Asian markets within the health and nutrition space; offering the company significant potential to grow.
By entering this market, Arla Foods Ingredients can better serve customers in the region, notes Alexander Leufgen, Head of Asia-Pacific at Arla Foods Ingredients.
"Demand for high-quality whey and dairy ingredients is growing across Southeast Asia, especially in key segments like active nutrition and food functionality."
"Our goal is to improve and extend our offering to manufacturers across the region, which we will achieve through this extended arrangement with Brenntag. By building on this collaboration, we'll be able to better tailor our products and services to meet the needs of functional food and beverage formulators," he adds.
The agreement will also build on the success Arla has had in the Chinese market, notes Kenneth Keh, Regional President, Nutrition Asia Pacific, Brenntag Specialties.
“Our partnership with Arla Foods Ingredients in China has been immensely successful, so we hope to see similar results in Southeast Asia."
"With our combined strength we are confident that we can meet the demand for high-quality, innovative nutritional products in the growing markets of Indonesia, Thailand, and Vietnam,” he concludes.