Regulators approve Arla’s acquisition of Volac’s whey nutrition business
The regulator’s go-ahead comes after an evaluation, following the signing of an acquisition agreement in April.
"This is a very welcome decision at a time when demand for high-quality whey ingredients is growing," said Luis Cubel, group vice president and managing director of Arla Foods Ingredients.
"The acquisition will expand our capacity for the production of WPI for the sports nutrition market and lactose for the food industry. It will also allow us to add animal bases for calf-milk replacement to our portfolio.”
How the CMA regulates mergers and acquisitions
The CMA is the United Kingdom's main regulator overseeing competition. It works to enhance business competition and curb anti-competitive practices.
In business acquisitions, the CMA plays a key role by reviewing proposed mergers and acquisitions to ensure they do not harm market competition, limit consumer choices or lead to unfair pricing.
This regulatory scrutiny aims to protect consumers and maintain a healthy market environment by preventing monopolies or dominant companies from exploiting their market power.
Expanding the sports nutrition portfolio
The Danish dairy company will acquire the division through the purchase of shares in Volac Whey Nutrition Holdings Limited and its subsidiaries Volac Whey Nutrition Limited and Volac Renewable Energy Limited.
The UK-based Volac group specializes in turning whey into ingredients for sports nutrition, with byproducts used for food and animal nutrition.
The range consists of core protein isolates UltraWhey 90 (a pure whey protein isolate containing on average 92% protein) and UltraWhey Xtra Pure (a premium quality whey protein isolate containing on average 94% protein and less than 0.4% lactose).
Its specialty range includes UltraWhey Velicious, a specifically engineered whey protein concentrate powder designed to be used in everyday products including ice cream, small format products (such as squeezable pouches), bars, chocolate, spreads, fillings or cookies. It also includes Pro₂O, a low-pH whey protein isolate in a clear, ready-to-mix shake form.
Arla Foods Ingredients’ current portfolio includes the Lacprodan range of solutions for sports nutrition applications including RTDs, powder shakes and protein bars. This acquisition will allow Arla Foods Ingredients to use the whey processing facility in Felinfach, Wales as a global production hub.
Growing sports nutrition trends
According to Euromonitor’s 2024 Consumer Health report, the global sports nutrition industry has grown at a CAGR of 9% since 2010 and is projected to reach $42.2 billion by 2028. For context, it was worth $28.1 billion in 2023.
As Euromonitor's Matthew Oster explained during the recent Active Nutrition Summit, this can be in part attributed to the democratization of sports nutrition.
In the past, demand for protein-enriched functional beverages was limited to hardcore athletes willing to overlook the sensory properties of products if they delivered the desired nutrients.
Now, sports nutrition products are attracting a broader, more diverse base of consumers looking to optimize their health and counteract aging—understanding that additional protein can help them achieve these goals as part of muscle-building exercise regimes.
Nutrition Integrated, the specialist active nutrition data and insights provider, recently reported that there has been a 12% increase in the number of clear whey products available to keep up with the demand of everyday consumers.
