Arla Foods has sold its Cremo business to the Kerry Group, the large Irish food group. Cremo produces and markets foods ingredients and flavourings for application in the prepared foods, bakery, ready meals and snack sectors.”
Cremo’s workforce was informed of the move on Wednesday and given assurances that the company’s production will be maintained as before. The company is based at Glamsberg in Funen where it employs 93 people.
MD Foods, Arla Foods’ predecessor, bought into Cremo in 1989 and acquired full ownership in 1993.
“We were facing a situation where we either had to be a part of the industry’s further consolidation or dispose of the company,” said Sales Director Henrik Andersen, Arla Foods Ingredients. “The approach from Kerry Ingredients was unexpected, but the offer was such that we decided to sell.”
“Arla Foods Ingredients has considerable potential for growth within the fields of milk powder and proteins and will now focus exclusively on these business areas.”
The purchase sum has not been disclosed.
The Kerry Group ranks among the world’s largest producers of ingredients and flavourings for the food industry and also a producer of consumer products. The group also supplies food to the Irish and UK markets. It has a workforce of 20,000 and recorded a turnover of DKK 28 billion in its recent financial year.