Mondelez International, the Nasdaq-listed consumer goods company, completed the sale of its Kraft cheese business to Denmark-based Arla Foods for an undisclosed sum, it said on Wednesday.
Under the deal, which was signed last December, Arla acquires full ownership of the Mondelez cheese production site in Bahrain, which produces a range of Kraft products and has the potential to expand its size.
As announced at the time, all Kraft-branded cheese products in the Middle East and Africa markets, and the plant in Bahrain, are part of the agreement. The cream cheese brand Philadelphia and Jocca cottage cheese are not included in the deal and remain under Mondelez’s ownership.
The deal is intended to strengthen Arla’s market position in the Middle East and Africa, giving it access to new product categories and manufacturing sites, the Danish company said in December.
The transaction enables Mondelez International to focus on faster growing snacks categories, it said this week – including chocolate, biscuits, powdered beverages and gum and candy. Mondelez produces and distributes the powdered soft drink Tang in the region, as well as other brands.
“We will continue to be a leading player in the MEA snacking business,” said Maurizio Brusadelli, executive vice president and president of Asia Pacific, Middle East and Africa for Mondelez International.
“Our recently inaugurated state-of-the-art factory in Bahrain will serve biscuits and Tang powdered beverages to our customers in MEA. I am confident that this successful business will further develop under Arla Foods’ ownership.”
There are no changes to Mondelez’s cheese and grocery business elsewhere in the world as a result of the deal with Arla.
Updated: May 29, 2019 05:41 PM