Brenntag, the global market leader in chemicals and ingredients distribution, has formed a distribution partnership agreement with Arla Foods Ingredients (Arla) via its subsidiary, Zhongbai Xingye Food Technology (Beijing) Co., Ltd (Zhongbai) to serve the growing China market for food and nutrition.
Majority owned (67%) by Brenntag, Zhonghai already has a strong 15-year working relationship with Arla, which offers a broad range of premium food and nutrition ingredient solutions in China and globally. The new agreement will cover the full range of Arla Foods Ingredients’ business units focusing on solutions for 3 key segments namely:
- Infant Nutrition: With Chinese parents becoming more knowledgable and 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 where there is a strong demand for protein fortification.
The in-depth collaboration between the 2 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.
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 2 market leaders are joining hands for future growth in a highly attractive Specialties market.”
Luis Cubel, Commercial Director of Arla Foods Ingredients added that the demographic changes in China have increased the demand for high-quality products, particularly in the infant nutrition and performance nutrition spaces. China is now one of the world’s most important nutrition markets.
Meanwhile, regulatory changes like the recent decision by China to allow whey permeate imports will positively impact the partnership.
