Arla Foods Ingredients acquires Volac’s whey business to boost performance nutrition presence

22 Apr 2024 --- Arla Foods Ingredients acquired the whey nutrition division of UK-based dairy nutrition company Volac. The transaction will be completed later this year following the necessary regulatory approvals.

The primary purpose of the acquisition is to allow Arla Foods Ingredients to use the Felinfach site as a global production hub and the cornerstone of an enhanced product offering in the performance, health and food sectors, set to play a vital role in the company’s future focus.

 “This brings together two complementary offerings in a growing and increasingly international space for whey products. Volac is a pioneer in the use of whey protein for performance nutrition and has a wealth of expertise as well as an incredibly talented team. It shares our commitment to helping companies worldwide harness the full potential of whey,” says Luis Cubel, group vice president and managing director of Arla Foods Ingredients.

Whey for sports nutrition
Volac specializes in the production of whey into ingredients for sports nutrition. The by-products are sold to the food and animal nutrition industry. The acquisition agreement with Arla Foods Ingredients represents a logical step for Volac in its evolution to be a springboard to optimize its whey nutrition division as its animal nutrition business. 

“Whey processing started at the Felinfach site more than three decades ago, and we couldn’t be prouder of everything that’s been achieved by everyone involved in the business since then,” James Neville, joint owner of Volac, notes. 

“When considering the future of Volac Whey Nutrition and the opportunities that lie ahead for that business, it was crucial for us to choose a partner with the right values and expertise. Arla Foods Ingredients has the ambition and the knowledge to take the business to the next level.” 

The global sports nutrition industry has grown at a 9% compound annual growth rate (since 2010). By 2028, it is projected to be worth US$42 billion, up from US$28 billion in 2023. Volac Whey Nutrition’s portfolio includes the Volactive range. Arla Foods Ingredients’ portfolio consists of the Lacprodan range of solutions for sports nutrition applications, including RTDs, powder shakes and protein bars.

Optimizing whey for performance segmentVolac views the move as a stepping stone to creating a stronger whey nutrition business.
The acquisition was realized through the purchase of shares in Volac Whey Nutrition Holdings Limited and its subsidiaries, Volac Whey Nutrition Limited and Volac Renewable Energy Limited. 

For Volac, this represents a logical step in its evolution as a family business and provides the springboard for the optimal development of the Whey Nutrition Business as well as Volac’s remaining Animal Nutrition Business.

Volac has seven production facilities — four in the UK, one in the US, one in Indonesia and one in Malaysia — where it manufactures and supplies dairy nutrition products to the global market. Volac is a wholly owned subsidiary of Woodford Holdings, a non-trading company.

Last week, Arla Foods Ingredients unveiled a high-protein beverage called Progamer. The functional drink is geared toward nutrition-conscious gamers and e-sporters who want to boost gaming performance while maintaining good health.

At Food Ingredients Europe 2023 in Frankfurt, Arla Foods Ingredients showcased its clear protein portfolio with ready-to-mix solutions tailored to consumer activity levels, ranging from weight lifters to yoga practitioners. 

The three protein water concepts feature specific functionalities like more muscle-building capacity or a milder taste. Two of the three prototypes, Lacprodan BLG-100 and Lacprodan ISO.WaterShake, feature novel whey ingredients.

Meanwhile, an upgrade at Arla Foods Ingredients’ Porteña facility in Argentina marks a strategic investment to satisfy the rising global and Latin American demand for high-quality whey ingredients. As the enterprise seeks to fortify its market presence, the emerging questions on ethical nutritional sources and allergic responses to dairy products remain prevalent among consumers.

By Inga de Jong