Arla Foods Ingredients and Zhongbai Xingye Food Technology have signed a distribution agreement for Arla to provide its products to the Chinese food and nutrition markets.
Zhongbai is part of the Brenntag Group, a chemical and ingredients distribution company that acquired the company in 2021.
The partnership is said to build on Arla and Zhongbai’s long-standing relationship, spanning over 15 years, during which they have “significantly grown” their presence in the Chinese market.
The newly established agreement focuses on three key sectors: infant nutrition, in which the partnership will be focused on helping manufacturers enhance the nutritional value of formulas and other products for infants and toddlers; performance nutrition, the deal sees potential for further growth in China’s performance nutrition market, which includes sports nutrition, nutrition for seniors and dietary supplements; and food and beverage.
The collaboration between the two companies includes a jointly financed Innovation & Application Center situated within Zhongbai’s Beijing facility. The centre, which serves as a hub for creating formulations tailored specifically to the Chinese market, will be expanded to include additional capabilities for creating products tailored to local market needs.
Luis Cubel, commercial director of Arla Foods Ingredients, said: “Demographic changes in China have increased the demand for high-quality products, particularly in the infant nutrition and performance nutrition spaces. This agreement will help us adapt, and make our offering to Chinese markets even stronger. Zhongbai offers a wealth of expertise and local knowledge, and over the past 15 years, it’s been an incredibly productive partnership for both companies. We’re hugely excited about this new opportunity to co-operate even further, and to continue to invest in one of the world’s most important nutrition markets.”
Michael Friede, CEO of Brenntag Specialties, said: “This is an agreement that builds on some very solid foundations. We have a great working relationship with Arla Foods Ingredients, whose expertise, capacity and understanding of market needs has helped both companies grow in China. There’s still potential for major expansion, particularly in key segments like performance nutrition. We’re looking forward to working together to take the opportunities that lie ahead as two market leaders are joining hands for future growth in a highly attractive specialities market.”
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