Arla Foods Ingredients has signed a new distribution agreement in China with Zhongbai Xingye Food Technology (Beijing) Co. Ltd.
Zhongbai is part of the Brenntag Group, the global market leader in chemicals and ingredients distribution.
It has a strong and long-standing working relationship with Arla Foods Ingredients, which offers a broad range of premium food and nutrition ingredient solutions in China and globally.
In a collaboration spanning more than 15 years, the two companies have significantly grown their share of the Chinese market.
China
The new agreement to serve the Chinese food and nutrition markets, which is effective immediately, will cover the full range of Arla Foods Ingredients’ business units, focusing on solutions for three key segments:
- Infant Nutrition: the partnership will focus on helping manufacturers improve the nutritional profile of formula and other products for infants and toddlers;
- Performance Nutrition: There is high potential for further growth in China’s performance nutrition market, which includes sports nutrition, nutrition for seniors, and dietary supplements;
- Food and beverage: The two companies see strong growth potential in areas such as bakery and beverages.
The collaboration between the two companies includes a jointly funded innovation and application centre in Zhongbai’s Beijing facility.
This facility, which will be expanded under the agreement, develops formulations specifically for the Chinese market.
“Demographic changes in China have increased the demand for high-quality products, particularly in the infant nutrition and performance nutrition spaces,” Luis Cubel, commercial director of Arla Foods Ingredients, said.
“This agreement will help us adapt, and make our offering to Chinese markets even stronger.”
Michael Friede, chief executive of Brenntag Specialties, added that the agreement “builds on some very solid foundations”.
Headquartered in Denmark, Arla Foods Ingredients is a 100% owned subsidiary of Arla Foods.
