UK – Arla Foods Ingredients has completed the acquisition of Volac’s Whey Nutrition business following approval from the UK’s Competition and Markets Authority (CMA).
The regulatory go-ahead comes after an agreement was signed between the two companies in April 2024.
The core of the acquisition is a state-of-the-art processing facility located in Felinfach, Wales, which specializes in handling large volumes of whey and producing whey protein isolate (WPI).
This site will now become a key part of Arla Foods Ingredients’ global production network, with plans for additional investment and further expansion in the coming years.
The deal allows Arla Foods Ingredients to bolster its whey supply, addressing the growing demand for high-quality whey proteins, particularly in the health and sports nutrition sectors.
Over the past decade, the sports nutrition market has experienced robust growth, with a compound annual growth rate (CAGR) of 9% from 2010 to 2023.
The company expects a significant increase in WPI sales over the next five years, aligning with this upward market trajectory.
Along with WPI, the Felinfach facility will also produce whey fat concentrate and lactose, broadening the product offerings of Arla Foods Ingredients.
Luis Cubel, Group Vice President and Managing Director of Arla Foods Ingredients, emphasized the strategic benefits of this acquisition.
“Our acquisition of Volac Whey Nutrition brings together two major manufacturers of whey ingredients, consolidating our position as a leader in the space,” Cubel said.
“The addition of Volac’s experts and supply partners enhances our market reach, strengthens our global supply chain, and positions us well to meet the rising demand for whey.”
He also highlighted the shared values between the two companies, particularly in their commitment to quality, sustainability, and innovation.
“We look forward to learning from our new colleagues and partners and harnessing our respective strengths to meet the evolving needs of manufacturers and consumers, especially in the sports nutrition space,” he added.
In addition to expanding its whey production capabilities, Arla Foods Ingredients has also introduced an innovative solution to tackle the longstanding issue of acid whey waste, a by-product of producing strained dairy products like Greek yogurt.
The company’s new initiative, “Upcycle Your Whey to Value,” aims to convert acid whey—often discarded due to its environmental and financial costs—into a valuable, nutrient-rich ingredient for new food products.
The disposal of acid whey has been a significant challenge for the dairy industry, with large quantities of the by-product being difficult to manage.
Arla sees potential in this waste product, recognizing its nutritional value and transforming it into a resource that can contribute to the creation of sustainable and nutritious food products.
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