Arla Foods, Viby, Denmark, said it entered into a licensing agreement with Kraft Heinz, headquartered in Chicago and Pittsburgh. The agreement gives Arla Foods the license to use the Kraft brand for the next 12 years in the Middle East on the cheese portfolio recently acquired by Arla from Mondeléz International.
The markets covered by the license agreement include Bahrain, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Mauritius, Oman, Palestine, Qatar, Saudi Arabia, Syria, UAE, Yemen and the Seychelles, Arla Foods said.
“We are pleased to reach this agreement with Kraft Heinz,” said Tim Ørting Jørgensen, executive vice president of Arla’s international zone. “It secures an important continuation of the business we have acquired, which is also good news for the millions of consumers in the region who know and love the Kraft branded cheese products.
“Combining the Kraft cheese portfolio with our own Puck range will make us a leader in the cheese category, as we can offer customers and consumers the two strongest cheese brands in the market,” he added.
The new royalty-bearing license grants Arla the right to use the Kraft brand on cheese products with the exception of macaroni & cheese and packaged food products containing a combination of cheese and other foods such as cheese and crackers. The terms of the license agreement were not disclosed.