Valio extends presence in Estonia

- Last updated on GMT

Related tags: Milk, Valio

Finnish dairy products company Valio is to acquire Norwegian firm
Synnöve Finden's 42 per cent holding in Estonian cheese producer
Võru Juust, leaving Valio with a 99 per cent stake in Võru Juust.

Valio​ and Synnöve also made a long-term agreement for cheese deliveries from Võru to Synnöve.

The dairy company said it will henceforth have a stronger presence in Estonia.

"This acquisition supports Valio's new strategy for an expanded home market that includes the Baltic states, Sweden and Western Russia in addition to Finland,"​ said the company in a statement, adding that the transaction will be finalized as soon as possible.

When Valio announced that it had decided to sell its baby food business to leading formula maker Royal Numico back in May, the Finnish firm said the sale would help it focus on its core business of dairy foods and functional health products. This latest acquisition fits with this goal.

Tutteli and Muksu baby food brands were transferred to the ownership of Royal Numico on 8 September, giving the Dutch company the right to use the Valio logo on Tutteli and Muksu packages for two years.

The latest addition to Valio's product range is the Benecol milk drink, which made its first apperance on the shelves at the beginning of this month. Like Benecol yoghurts and fermented milk, it contains plant stanol - licensed from Raisio - and is said to reduce the amount of harmful LDL cholesterol in blood.

Benecol milk drink contains 1.3 per cent fat, of which 1 per cent is milk fat and 0.3 per cent rapeseed oil, and has no added ingredients except plant stanol and vitamin D. It is aimed at people with an elevated cholesterol level and the company says that a recommended daily dose of 2 g of plant stanol can be obtained from two to three glasses (5 dl) of the drink.

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