Campina plots US expansion with Vitalus

By staff reporter

- Last updated on GMT

Related tags Milk Campina

Dutch dairy firm Campina is aiming to reach critical mass in its
penetration of the North American functional and nutritional
ingredients sector, entering into a joint venture with Canada-based
Vitalus.

The 50-50 JV, to be known as DMV-Vitalus Ingredients, involves DMV International, part of Campina's Industrial Products Group. While DMV will be responsible for sales, marketing and customer support, Vitalus brings to the table its range of nutrifunctional ingredients derived from whey and milk proteins ingredients and its US customer base.

Management of the JV rests with Campina, which says the main focus will be on expanding the business with a portfolio of dairy protein specialties, such as whey protein concentrates, for diet nutrition, infant formulas and mainstream foods.

The companies are expecting turnover in the region of €10m, in a market that offers lucrative potential. According to Campina CEO Justin Sanders, the US dairy ingredients market is estimated at €4bn, with annual growth of three to four percent.

"With this JV Campina will improve its position in the international ingredients business and strengthen its presence in the important North American dairy ingredients market,"​ he said.

The JV is also expected to increase North American access to Campina's own whey-based ingredients, produced at its facilities in The Netherlands. A major investment in these facilities, known as 'Veghel Force' is on the point of completion.

"The JV is fully in line with Campina's growth strategy and will form a solid basis to continue ling-term investments in innovation, quality and service, needed to stay ahead,"​ said Sanders.

Indeed, this is the third in a succession of strategic manoeuvres involving DMV with the aim of increasing global growth. In June it acquired the Inovatch egg ingredients plant in Argentina and swiftly integrated it into the Food Systems & Nutrition; it also recently entered a JV with Lactose New Zealand over pharma ingredients.

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