Arla Foods UK has today (Tuesday September 9) confirmed that, subject to the sale of Milk Link's Staplemead creamery to Andros, it will enter into a co-packing agreement with the new owners to pack a range of products previously produced by Staplemead Dairy Products, the joint venture company owned by Arla Foods UK and Milk Link.
Under the co-packing agreement, Andros, a French dairy company, will take over production of a range of creams, custards and flavoured milks for Arla Foods, when the existing joint venture ends by mutual agreement in early autumn.
Arla Foods CEO, Peter Lauritzen, said of the proposed agreement: "We understand Milk Link's decision to sell Staplemead and look forward to a positive working relationship with Andros which already supplies key UK retailers and has expertise in the production of fresh dairy products. We understand it has major investment plans for the site."
The co-packing agreement at Staplemead complements Arla Foods' Northallerton and Oakthorpe operations which produce fresh and speciality creams for the UK's major retailers.