Arla Foods Ingredients moves forward with acquisition of Volac Whey Nutrition business
- Written by Daily Sun
The regulator's go-ahead followed an agreement between the two companies, which was signed in April 2024.
The business is built around a processing facility at Felinfach in Wales, which handles large volumes of whey and specialises in the production of whey protein isolate (WPI). The site will now become a cornerstone of Arla Foods Ingredients' global production facilities, with further investment and expansion planned in the coming years.
The acquisition gives the nutrition leader a significant additional quantity of whey, helping it meet a growing market need. There is particular demand for WPI in the health and sports nutrition sectors, which grew by a CAGR of 9% between 2010 and 2023.[1] Arla Foods Ingredients now projects that its sales of WPI will rise significantly over the next five years. The facility will also produce whey fat concentrate and lactose.
Luis Cubel, Group Vice President and Managing Director of Arla Foods Ingredients, said: "Our acquisition of Volac Whey Nutrition brings together two major manufacturers of whey ingredients, and consolidates our position as a leader in the space. Having Volac's experts – and its network of trusted supply partners – as part of our team gives us several strategic advantages. It expands our market reach, helping us serve even more great customers, and strengthens our global supply chain at a time when demand for whey is growing."
He added: "Furthermore, these are two companies with shared values and a joint commitment to quality, sustainability and innovation. We look forward to learning from our new colleagues and partners and harnessing our respective strengths to meet the evolving needs of manufacturers and consumers, especially in the sports nutrition space."
[1] Euromonitor, Consumer Health, 2024
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About Arla Foods Ingredients
Arla Foods Ingredients is a global leader in improving premium nutrition. Together with our customers, research partners, suppliers, NGOs and others, we discover and deliver documented ingredients and products that can advance lifelong nutrition for the benefit of consumers around the world.
We serve leading global brands in early life nutrition, medical nutrition, sports nutrition, health foods, and other foods and beverages.