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Joint venture with Delta in Greece

Press Release   •   Jun 22, 2000 14:31 CEST

Arla Foods and the leading company within the Greek dairy industry, Delta, announced on Thursday that the two sides are discussing the possibility of a joint venture between Delta Selections and the Athens-based Arla Foods Hellas. The new company, in which Delta will hold a 40% stake and Arla Foods 60% would operate as Arla Foods Hellas S.A.

Through its subsidiary, Delta Selections, Delta produces Greek feta from sheep and goats' milk. With a capacity of approx. 5,000 tons and a workforce of 65, it is one of Greece's largest feta producers.
One of the objectives of the new set-up is for Delta to distribute some of the products from the joint venture to its extensive distribution network (24,000 Greek shops) which also distributes Delta’s other products (milk, yoghurt, ice cream, fruit juice etc.).
The agreement will mean that Arla Foods Hellas will not only be the largest importer of dairy products in the Greek market, but also a major local producer. Moreover, the agreement will allow Arla Foods to include an original Greek feta in its international portfolio of speciality cheese.
Arla Foods Hellas S.A. will have a turnover of approx. GRD 26.0 billion or DKK 580 million.
Arla Foods amba, the merger between the Swedish dairy company Arla and the Danish MD Foods, is Europe's largest dairy company measured in terms of milk volume. The group, which is owned by 17,000 Danish and Swedish milk producers, employs a staff of 19,300, has production in seven countries (prior to the agreement in Greece) and has exports to 104 countries.
Delta Selections is a subsidiary of Delta Holding which has a turnover of GDR 126 billion or DKK 3 billion. Further to its business in Greece the company has sales in a number of countries in Eastern Europe.