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Arla Foods Announces Intended Merger with DMK Group to Bolster Dairy Alternatives Market

Published 6 days ago2 minute read
Arla Foods Announces Intended Merger with DMK Group to Bolster Dairy Alternatives Market

The boards of representatives of leading dairy cooperatives, Arla and DMK Group, have formally approved a proposed merger, a strategic move that comes as both entities increasingly expand into the dairy alternatives sector. This merger aims to synergize Arla’s extensive international presence and innovative capabilities with DMK Group’s robust product portfolio and specialized expertise. With the crucial approval from their respective cooperative decision-making bodies now secured, the intended merger will proceed to the next stage: regulatory approval. This essential process is anticipated to conclude by the first quarter of 2026, during which time both companies will continue to operate independently.

Should the merger successfully navigate the regulatory landscape, the newly formed combined entity will operate under the distinguished name of Arla Foods, establishing its headquarters in Viby J, Denmark. The leadership structure for the new organization has also been outlined: Jan Toft Nørgaard is slated to serve as Chair, with Peder Tuborgh taking on the role of CEO. Additionally, Ingo Müller, currently CEO of DMK Group, will join the Arla executive management team as Executive Vice President of post-merger integration. Jan Toft Nørgaard expressed gratitude to the owners for their active participation, stating, “The approval of the decision-making bodies confirms our shared belief that Arla and DMK Group are stronger together.”

Both Arla and DMK Group have been actively broadening their offerings in the plant-based market. Arla first ventured into the plant-based milk sector in 2020 with the introduction of its oat milk brand, JÖRD, in Denmark and the UK. Although the JÖRD brand was recently withdrawn from UK retail to prioritize the foodservice segment, Arla continued its plant-based expansion last year by launching a vegan version of its premium Danish butter brand, Lurpak, despite some opposition from its farmer-owners. DMK, on the other hand, boasts a diverse range of plant-based products, including alternatives to cheese, spreads, sour cream, and yogurt, alongside vegan desserts and infant meals. The full impact of the merger on the combined plant-based product ranges remains a key point of interest. Ingo Müller commented on the approval, stating it is “a strong sign” that demonstrates their commitment to the cooperative idea and belief in collective strength for the benefit of their businesses, future generations of farmers, and the consistent supply of high-quality food to consumers, both domestically and internationally.

From Zeal News Studio(Terms and Conditions)
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