Arla Concretes Russian Position

RUSSIA – Dairy processor Arla has finalised a deal to fully acquire the joint venture controlling its Russian activities, with the hope of trebling revenue by 2017.
calendar icon 3 May 2013
clock icon 2 minute read

Through purchasing the last 25 per cent, Arla now wholly owns the Russian subsidiary which is to be headed by former owner, Mike Lysako.

This concludes a takeover cycle on-going since 2007, when Arla bought St Petersburg based distribution company Artis to create Arla Foods Artis, said Hans Christensen, Senior Vice President in Consumer International with responsibility for Russia and North America.

"The acquisition of the last 25 pct. cements our ambitions in Russia. Under the agreement from 2007, we have always had the option to acquire the remaining holding, and in view of our success in the Russian market, and our ambitions in our Strategy 2017, both parties considered this to be the right time."

Russia is one of three strategic growth market areas and ambitious plans exist for developing sales of butter and cheese on shop shelves. Established brands include Lurpak and Castello with Arla already boasting a market share of 22 per cent of white cheese.

The announcement comes after several years of expansion under the steady leadership of Mr Lysako.

"Both volume and revenue have increased by an annual average of more than 20 pct. over the last five years. Mike's entrepreneurial spirit and extensive knowledge of the retail sector have been key to our success, and I am pleased that he has chosen to continue to be part of Arla,” added Mr Christensen. “We have to increase our business threefold, and this means that we must actively and constantly seek out new customers, to expand our scope in the world's largest country.”

Arla’s 2017 revenue target is approximately DKK600 (Danish Krone) ,with aspirations to become one of the leading yellow cheese companies in Russia.

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