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​Arla to sell Rynkeby Foods A/S to Eckes-Granini Group

Press Release   •   May 19, 2016 10:00 CEST

Arla Foods amba (‘Arla’) today announced that it has signed an agreement to sell its juice subsidiary Rynkeby Foods A/S (‘Rynkeby’) to German-based Eckes-Granini Group GmbH (‘Eckes-Granini’), the leading producer of branded fruit-based beverages in Europe.

The transaction has been completed and takes effect immediately.

Rynkeby is the largest manufacturer of juice and cordials in the Nordic region, selling more than 130 million litres of beverages for consumers primarily in Denmark, Sweden and Finland under the brands Rynkeby® and God Morgon®. The company was founded in 1934 but has been fully owned by Arla Foods since 1998.

Povl Krogsgaard, vice-CEO of Arla Foods amba, is confident that Eckes-Granini is a compelling strategic fit for Rynkeby going forward:

“Over the past two decades Arla has sold off subsidiaries that do not have a direct link to dairy production in order to focus on our core business. Rynkeby is the last remaining subsidiary in the Arla Group not linked to milk and we believe that the Rynkeby business will be better suited under the ownership of Eckes-Granini who can take the company to the next level in its future development.”

Thomas Hinderer, Chairman and CEO of the Eckes-Granini Group, notes:

“The acquisition of Rynkeby Foods is another important milestone in dynamically pursuing the international growth strategy of the Eckes-Granini Group. We are proud to welcome Rynkeby Foods along with its highly motivated professional team and two new, strong brands to the Eckes-Granini Group. The Rynkeby® and God Morgon® brands round out our portfolio ideally. We are now number one in eight European countries as we continue to pursue our successful course as the leading supplier of fruit beverages.”

As part of the agreement, the parties have agreed on a structure for the continuation of the current distribution set-up.

Further terms and conditions of the transaction are not disclosed.

About Rynkeby:
Rynkeby Foods A/S is a Denmark-based supplier of juice and cordials, selling more than 130 million litres pr. year for consumers primarily in Denmark, Sweden and Finland. Revenue in 2015 was approx. 1 billion DKK (130 million euro). The company has 200 employees, with its headquarters and main production site located in Ringe, Denmark.

About Eckes-Granini:
Eckes-Granini Group GmbH, based in Nieder-Olm, close to Mainz (Germany), is the leading company of branded fruit-based beverages in Europe, with 15 national organizations and about 1.500 employees, exporting to 70 countries. With its international premium brands granini and Pago and with its “local hero” brands hohes C, Joker, Marli, Brämhults, Elmenhorster, Sió and YO, the company is represented in the retail food trade and the out-of-home market.

About Arla Foods:
Arla Foods is an international dairy company owned by 12.700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. Arla Foods is one of the strongest players in the international dairy arena, with a wide range of dairy products of highest quality. Well-known brands like Lurpak® and Castello® belong to the Arla family. Arla Foods is also the world's largest manufacturer of organic dairy products.

Arla Foods is an international dairy company owned by 12.700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. Arla Foods is one of the strongest players in the international dairy arena, with a wide range of dairy products of highest quality. Well-known brands like Lurpak® and Castello® belong to the Arla family. Arla Foods is also the world's largest manufacturer of organic dairy products.