Sunday, March 3, 2024

Arla Foods Ingredients and Zhongbai Xingye sign new agreement to advance Chinese nutrition business

Arla Foods Ingredients and Zhongbai Xingye Food Technology (Beijing) Co., Ltd (Zhongbai) have signed a new distribution agreement to serve the Chinese food and nutrition markets.

Zhongbai is part of the Brenntag Group, a global leader in chemicals and ingredients distribution. It has a strong and long-standing working relationship with Arla Foods Ingredients, which offers a broad range of premium food and nutrition ingredient solutions in China and globally.

In a collaboration spanning more than 15 years, the two companies have significantly grown their share of the Chinese market. The new agreement, which is effective immediately, will cover the full range of Arla Foods Ingredients’ business units, focusing on solutions for three key segments:

  • Infant Nutrition: With Chinese parents increasingly demanding premium products, the partnership will focus on helping manufacturers improve the nutritional profile of formula and other products for infants and toddlers.
  • Performance Nutrition: There is high potential for further growth in China’s performance nutrition market, which includes sports nutrition, nutrition for seniors, and dietary supplements.
  • Food and beverage: The two companies see strong growth potential in segments such as bakery and beverages.

The in-depth collaboration between the two companies includes a jointly funded Innovation & Application Center in Zhongbai’s Beijing facility, where China-specific formulations are developed. As part of the new agreement, it will be expanded with additional application-specific capabilities, increasing the potential for 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 specialties market.”

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