Arla Foods Ingredients has successfully acquired Volac’s Whey Nutrition business, as confirmed by the UK’s Competition and Markets Authority. This acquisition marks a significant step forward for the company, following an agreement signed between the two parties in April 2024.
The core of Volac’s Whey Nutrition business is its processing facility located at Felinfach in Wales. This facility is known for handling large quantities of whey and specializing in the production of whey protein isolate (WPI). With the approval of the acquisition, this site will now play a crucial role in Arla Foods Ingredients’ global production network, with plans for further investment and expansion in the future.
The acquisition provides Arla Foods Ingredients with a substantial increase in whey supply, allowing the company to meet the growing demand in the market. The demand for WPI, especially in the health and sports nutrition sectors, has been steadily increasing, with a compound annual growth rate (CAGR) of 9% between 2010 and 2023. As a result, Arla Foods Ingredients anticipates a significant growth in its sales of WPI over the next five years. In addition to WPI, the facility will also produce whey fat concentrate and lactose.
Luis Cubel, Group Vice President and Managing Director of Arla Foods Ingredients, expressed his enthusiasm about the acquisition, highlighting the strategic benefits it brings to the company. By combining forces with Volac Whey Nutrition, Arla Foods Ingredients strengthens its position as a leading manufacturer of whey ingredients. The expertise of Volac’s team and their network of supply partners will enhance Arla Foods Ingredients’ market reach, enabling them to better serve their customers and improve their global supply chain.
Moreover, the shared values of both companies, including a commitment to quality, sustainability, and innovation, align well with the strategic goals of Arla Foods Ingredients. The acquisition presents an opportunity for collaboration and knowledge-sharing between the two companies, allowing them to leverage their strengths to address the evolving needs of manufacturers and consumers, particularly in the sports nutrition sector.
Overall, the acquisition of Volac’s Whey Nutrition business by Arla Foods Ingredients signifies a significant development in the whey ingredients industry. The combined expertise and resources of both companies are poised to drive innovation and growth in the market, benefiting manufacturers and consumers alike.
