Arla Foods Ingredients and distributor Zhongbai Xingye Food Technology (Beijing) Co., Ltd (Zhongbai), have signed a new distribution agreement to serve the Chinese food and nutrition markets.

Zhongbai, which is part of the Brenntag Group, has a long-standing working relationship with Arla Foods Ingredients. The manufacturer currently offers a range of food and nutrition ingredient solutions in China and globally.

During their 15 year collaboration, the two companies have grown their share of the Chinese market. The new agreement, which is effective immediately, will cover the full range of Arla Foods Ingredients’ business units, with the two companies seeing strong growth potential in segments such as bakery and beverages.

Adapting and expanding to fit the market

The agreement between the two companies includes the expansion of a jointly funded Innovation and Application Centre in Zhongbai’s Beijing facility, where China-specific formulations are developed.

Luis Cubel, commercial director of Arla Foods Ingredients, said: “This agreement will help us adapt, and make our offering to Chinese markets even stronger. Zhongbai offers a wealth of expertise and local knowledge and over the past 15 years it’s been an incredibly productive partnership for both companies. We’re hugely excited about this new opportunity to co-operate even further, and to continue to invest in one of the world’s most important nutrition markets.”

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.

“We’re looking forward to working together to take the opportunities that lie ahead as two market leaders are joining hands for future growth in a highly attractive specialties market.”