Arla Foods signs license agreement with Kraft Heinz

Posted under Catering News ME, News.
by Dina Maaty | Published 3 months ago

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Arla Foods has signed an agreement with Kraft Heinz, which gives it the license to use the Kraft brand for the next 12 years in the Middle East on the cheese portfolio.

Markets covered by the license agreement include the UAE, Bahrain, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritius, Oman, Saudi Arabia, Yemen and more.

“We’re pleased to have reached this agreement with Kraft Heinz. It secures an important continuation of the business we have acquired, which is also good news for the millions of consumers in the region who know and love Kraft-branded cheese products,” says Tim Orting Jorgensen, executive vice president of Arla’s international zone.

“Combining the Kraft cheese portfolio with our own Puck range will make us leaders in the cheese category as we can offer customers and consumers the two strongest cheese brands in the market,” he adds.

The new royalty-bearing license grants Arla the right to use the Kraft brand on cheese products with the exception of Macaroni & Cheese and packaged food products containing a combination of cheese and other foods such as cheese and crackers.

In December 2018, Arla announced an agreement with American multinational confectionery, food, and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is licensed under the Kraft brand. This deal was formally completed on May 28, when Arla took over the acquired operations.

The MENA region is one of the key geographical regions in Arla’s strategy. In 2018, Arla’s retail and foodservice revenue in the MENA region reached EUR 560 million.

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