A new European cheese major is born. The news comes from Belgium where two famous dairy companies, namely Vache bleue group and Flanders food production (FFP) have merged: a new company, European Dairy Company, has been born, which will have a combined annual turnover of about 500 million Euro. The new company will be a "major European player in the dairy sector", according to the parties.

European Dairy Company will operate from the parties' existing sites in Belgium, France and Germany: employees and current management team will be retained. The companies said that further expansion plans are "planned" to increase the production capacity of the various sites.

Vache Bleue, based in Lillois, Wallonia, founded in 1927, is known for brands such as Vache Bleue, Dilea Zero Lactose and Valmartin, distributed in the national market and in France. The company also produces cheese in Germany and supplies private label products. Flemish FFP, Flanders Food Production, based in Lommel, founded in 2003, cuts, grates and portioned cheese and has "extensive experience" in private label products.

In a statement, Free Vroome, managing director of Vache Bleue, said: "By joining forces, we have gained a strong position in the dairy market. The Vache Bleue group has access to FFP’s expertise and technology. We will exploit synergies, optimise investments and build a better position in all markets without losing sight of our Belgian roots".

Axel Van de Poel, ceo of FFP, added: "The investment power of our new group enables us to deliver what customers expect: strong products, fast deliveries and high quality, backed by modern technology. FFP can now rely on its own cheese production in Germany and access new markets with the products of the Vache Bleue Group. By combining our expertise and focusing on growth, market expansion and innovation, we give our teams the best opportunities to continue growing together".