Arla Foods Ingredients and Zhongbai Xingye Food Technology have entered into a distribution agreement. This partnership will enable Arla to supply its products to the food and nutrition markets in China.
As of 2021, Zhongbai has become a subsidiary of the Brenntag Group, a company specializing in the distribution of chemicals and ingredients, following its acquisition.
The partnership is believed to strengthen the extensive connection between Arla and Zhongbai, which has developed over a period of more than 15 years. Throughout this time, they have notably expanded their influence within the Chinese market.
The recently formed accord centers around three primary domains: infant nutrition, where the collaboration aims to assist manufacturers in augmenting the nutritional content of formulas and items designed for infants and toddlers; performance nutrition, where the agreement identifies opportunities for expanded presence in China’s performance nutrition sector, encompassing sports nutrition, nutritional offerings for seniors, and dietary supplements; and lastly, the realm of food and beverage.
The partnership involving both firms encompasses the establishment of a shared Innovation & Application Center located within Zhongbai’s Beijing facility. This center, functioning as a central point for devising formulations customized for the Chinese market, will undergo expansion to incorporate supplementary capabilities for developing products that cater to the distinct requirements of the local market.
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.”
